BTW, I passed on Tim Sykes. The presentation was a cross between MLM and religious revival. Mr. Sykes might have a good thing going but he isn’t my taste. Maybe if I was hungrier.

Hey Duane, followed your link. Read Noland again. If you can see such macro trends on the basis of a daily snapshot, you are way smarter than me. Hope that isn’t too merciless

Here’s some brain food back@ya: http://fofoa.blogspot.com/2010/07/foa-on-hyperinflation.html

All the best,
Thrash

Here’s an article you might like: http://theautomaticearth.blogspot.com/2010/03/march-22-2010-incredible-lightness-of-s.html

Part of what I took from the article is that we use terms such as money, near-money, fiat currency and legal tender very loosely. Frankly, I don’t think we should use the word money at all when referring to the stuff, or legal tender issued by central banks.

To the extent the word money is used to describe such only adds to the confusion and worse, research based on a false premise.

Alex Jones?

Oh c’mon JR. First Bernard von Nothaus, now Alex Jones. What is this whack job weekend at DollarCollapse?

Amazing Jonesy spoke for ten minutes without his usual rant about fluoride in the water, internment camps, vaccines as a means of population control and that all President’s since and including Ronald Reagan must become child molesters once in office.

According to Jonesy it’s all part of some vast control conspiracy.

All the best,
Thrash

Brad et al – I finally took the time to read the entire article you linked to on Mauldin’s site. I guess those words you quoted were from Van Hoisington’s latest quarterly report (all new to me). He contends that M0, or monetary base, is not money. Hence, what you said. But M1 and M2 are money, and M3 is money intermixed with near-money. I’m not kidding and it actually makes sense. Gold is considered, too. I hope some will read the article carefully, because I cannot but see how it can add another piece to the puzzle of where we are currently headed.

It’s always hard to tell about guys like Bernard von Nothaus. I never know if they’re crooks, likable loons or martyrs. You don’t need a law degree to know von Nothaus scheme is a clear violation of Title 18 USC Section 486.

I first came upon this law, when at the tender age of 18, I had the bright idea of buying an island located in international waters, within the Great Lakes, declaring same independent, applying to the United Nations for recognition and building a hotel and casino. Yeah I know, kids, eh.

There was a time in Las Vegas, NV. when casino chips were commonly accepted by local merchants. The practice was ended in the 1970′s in part, (1) under threat of prosecution; and, (2) general concern regarding the economic viability of certain casinos.

von Nothaus first clue might have been, if they can’t do it in Vegas, it probably really is against the law. If the Feds have any sense of humor and they don’t, von Nothaus cellmate would be Irwin Schiff, the tax protester.

Their convoluted legal theories would be entertaining and who knows, they might actually stumble upon a correct one.

The point is, don’t try this at home kids. We need survivors, not martyrs.

All the best,
Thrash

First thank you for not expounding some weird conspiracy theory. I really do believe that the “power” is just the natural growth of the banking bureaucracy. This theory certainly follows with numerous warnings throughout history and seems far more credible.

And you’re right Bruce I had posted on this before, citing that the banks weren’t lending. But this is new info. The Fed isn’t actually printing new money. It is merely a bookkeeping entry.

I could of course pontificate eloquently how this policy meets the four pronged test for fraud. Seems pedantically obtuse given the circumstance. I prefer Daren Pang’s, “Holy jumpin’.”

I must now re-think the hyper-inflation scenario. This doesnt’ change my bullish outlook for gold. It’s all relative. But we should be prepared for the emotional angst of a manipulated paper gold crash and perhaps view such as a near last gasp or final takeover by the criminal elite.

Oh man the Chinese are going to be pissed. Now I really do understand why these situations usually require war to sort out. War consumes and destroys the excess capacity.

There must be a better way. Obviously, that’s a discussion for another day.

In the meantime, I’m hearing but so far haven’t confirmed, that come 2012 all businesses will report all transactions in excess of $600.00 on a new 1099. That’s got to make us all feel secure in our person, houses, papers, and effects…not that the reporting requirement might (1) constitute an unreasonable search absent a finding probable cause exists, (2) is necessary to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.

It is time I stop indulging such quaint notions and recognize reality. Mom & Dad always wondered when I’d grow up. A shame they didn’t live to see it.

All the best,
Thrash

He archives his stuff at http://maxkeiser.com and YouTube has a lot of past shows too.

John

Wish I had a more rigorous answer on the Fed question, but every time I start thinking about the monetary base and Fed balance sheet and all those money supply measures I just get a headache. Sometimes the simplest answer works pretty well, and in this case just assuming that the Fed and Treasury are a single organization that one way or another will keep running the “printing press” until everything falls apart gets us to the right conclusion: buy gold and hide it in a safe place!

John