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M3 Money Supply


So what do you understand about the dollar?

If you said, “Its not worth as much as it used to be.”, you would be wrong.

In truth the dollar is not worth anything anymore. When you start taking a closer look at American currency you start to realize that it is all smoke and mirrors.

When you first research money you would naturally look at the total money supply first.

M3, is a famous conspiracy theory term. We know it better as the “money supply”. Since the government announced in 2006 that it would stop reporting the M3 figure, every conspiracy theorist claimed that we just started printing money wildly, or that too many counterfeits were in the system so they had to stop reporting or lie.

The truth is that M3 is never really reported. All that is reported is the percent growth or decline of the money supply (see the Fed Reserve graph below). When you look at the chart it screams confusion.

These numbers really are meaningless. We need to know how much money is out there so we know how much in debt we are as a country. AFTER ALL, EVERY DOLLAR THAT IS PRINTED OR ADDED TO AN ACCOUNT IS ANOTHER DOLLAR THAT IS CREATED BY THE FEDERAL RESERVE AND WILL EVENTUALLY BE CONVERTED TO A COMMODITY. That’s right, we have leveraged all our natural assets with the dollars we have printed.

So if you haven’t figured it out yet, the end of the stability of American currency occurs when all those tens of trillions of U.S. dollars outside the United States are traded for goods. The most likely scenario is the massive purchase of gold with U.S. dollars, but it may just as well be steel, copper, silver, or any other asset we have.

If you haven’t noticed yet, one of the fastest growing industries in the United States is the scrapping industry. We have seen prices soar and fall more violently than the stock market. Not many people pay attention to how much scrap metals and precious metals are being purchased and shipped overseas. If you want to put our last 50 years in perspective, we bought new widgets for 10 trillion dollars and now the same people who sold us the 10 trillion in widgets is buying the raw materials that made those widgets back for about 100 billion. It isn’t hard to understand what is going on when you see those numbers.

All of our new toys are aging and we have leveraged ourselves completely. Now like any drug addict we are selling all our stuff to keep the high going. When the final straw of confidence in our foreign creditors breaks, the dam of buying and rapid inflation will happen within hours.

I hate to be the bearer of bad news, but there is no amount of budgeting that will cure this problem. We are in the middle of a fire sale right now but you will never hear it on the news. Foreign debtors are buying as much hard assets as possible. We suckered them in real estate so now they are turning to metals and other hard assets. This is the best way they can think of to dump their U.S. dollars.

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