JJ.G0ldD0t
17th September 2011, 06:43 PM
http://urbansurvival.com/week.htm
I'm going to have to start off with a four letter word this morning, so if you're offended by hard, brutal truth being spoken, then skip this part: New data just posted by the Fed shows we are totally, irrevocably fucked: The Federal Reserve M1 3-month printing rate is up to 36.7 percent annualized!!!! (http://www.federalreserve.gov/releases/h6/current/default.htm) What's more the 3-month M2 printing rate is screaming along up 23.3% basis the three month rate annualized.
Where the hell is our MSM cadre of so-called business reporters and editors when abominations like this are rising up in the economic data? FMTT.
So how did I trip over this undeniable arrival of hyperinflation? Well, I was getting out my calculator out this morning to push out the annualized inflation rate from the Thursday CPI report.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in August (http://www.bls.gov/news.release/cpi.nr0.htm)on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.8 percent before seasonal adjustment.
The seasonally adjusted increase in the all items index was broad- based, with continuing increases in the indexes for gasoline, food, shelter, and apparel. The gasoline index rose for the 12th time in the last 14 months and led to a 1.2 percent increase in the energy index, while the food index rose 0.5 percent, its largest increase since March.
Which compounds to a 4.9% annualized inflation rate. In the rearview mirror it was only 3.8 percent.
Break --full stop.
So I thought I'd look at the M1 and M2 money-printing rates to figure how bad deflation is, since given consumption is flat (everyone I know is broke, or close to it) and Wham! 36.7 percent M1 and 23.3 percent M2. Third world material for sure and an economic Beechslap.
So, what does that make the nominal deflation rate? If actual/reported inflation is 4.9% annualized and M1 is going up 36.7%? Implies a deflation rate of 31.8% which means one more thing:
Even IF the Gross Domestic Product is holding even at $15-trillion (don't hold your breath), the most recent M2 data means (at $9,5449 trillion) means the Velocity of Money is down to 1.5715.
So how much worse is this than the depths of the 2008-2009 period? About four percent worse. Time to apply the ViseGrips with a shot or two of El Don, huh?
Yeah, there's a lot of other news, but its all smoke and bullshit compared to the question of "Where's the money going?"
I'm betting it is buying up our own Treasury bonds, which means - in snake swallowing its own tale fashion - we're past the beginning of the beginning of the end. I'd estimate this puts us about the middle of the beginning of the end. The market crash to follow will be the end of the beginning or Depression Two.
When the next Shape of Things to Come report is issued next week, here's one word to keep firmly in mind: Coagulation. Right here in the once great land of the brave.
Need a bright spot? This is like being on the bow of the Titanic, with our life jackets on and a boat waiting for us even before hitting the iceberg, isn't it?
I'm going to have to start off with a four letter word this morning, so if you're offended by hard, brutal truth being spoken, then skip this part: New data just posted by the Fed shows we are totally, irrevocably fucked: The Federal Reserve M1 3-month printing rate is up to 36.7 percent annualized!!!! (http://www.federalreserve.gov/releases/h6/current/default.htm) What's more the 3-month M2 printing rate is screaming along up 23.3% basis the three month rate annualized.
Where the hell is our MSM cadre of so-called business reporters and editors when abominations like this are rising up in the economic data? FMTT.
So how did I trip over this undeniable arrival of hyperinflation? Well, I was getting out my calculator out this morning to push out the annualized inflation rate from the Thursday CPI report.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in August (http://www.bls.gov/news.release/cpi.nr0.htm)on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.8 percent before seasonal adjustment.
The seasonally adjusted increase in the all items index was broad- based, with continuing increases in the indexes for gasoline, food, shelter, and apparel. The gasoline index rose for the 12th time in the last 14 months and led to a 1.2 percent increase in the energy index, while the food index rose 0.5 percent, its largest increase since March.
Which compounds to a 4.9% annualized inflation rate. In the rearview mirror it was only 3.8 percent.
Break --full stop.
So I thought I'd look at the M1 and M2 money-printing rates to figure how bad deflation is, since given consumption is flat (everyone I know is broke, or close to it) and Wham! 36.7 percent M1 and 23.3 percent M2. Third world material for sure and an economic Beechslap.
So, what does that make the nominal deflation rate? If actual/reported inflation is 4.9% annualized and M1 is going up 36.7%? Implies a deflation rate of 31.8% which means one more thing:
Even IF the Gross Domestic Product is holding even at $15-trillion (don't hold your breath), the most recent M2 data means (at $9,5449 trillion) means the Velocity of Money is down to 1.5715.
So how much worse is this than the depths of the 2008-2009 period? About four percent worse. Time to apply the ViseGrips with a shot or two of El Don, huh?
Yeah, there's a lot of other news, but its all smoke and bullshit compared to the question of "Where's the money going?"
I'm betting it is buying up our own Treasury bonds, which means - in snake swallowing its own tale fashion - we're past the beginning of the beginning of the end. I'd estimate this puts us about the middle of the beginning of the end. The market crash to follow will be the end of the beginning or Depression Two.
When the next Shape of Things to Come report is issued next week, here's one word to keep firmly in mind: Coagulation. Right here in the once great land of the brave.
Need a bright spot? This is like being on the bow of the Titanic, with our life jackets on and a boat waiting for us even before hitting the iceberg, isn't it?