Mises.org Asks, How Much Money Inflation?
A teaspoon of Mises a day keeps inflation at bay.
Click Here To Read Mises.Org’s Analysis Of Inflation
Introduction (Via Mises.Org)
The Federal Reserve is lying about the nation’s money supply (M1). The current figure for money supply is being given as $1.6 trillion. The actual number is $2.34 trillion. The reported number is equivalent to an increase of 16% over the past year. The actual number is equivalent to an increase of 70% over the past year. This compares with the nation’s high money-supply increase of 16.9% in 1986.
Excerpts (Via Mises.Org)
However, the monetary base is a part of the money supply. How can the part exceed the whole? (Money is created in 2 basic steps. First, the Federal Reserve prints up paper money. This is called special money and is usable by private banks as reserves. It is treated in the system in the way gold used to be. This money is measured by Federal Reserve credit, or Reserve Bank credit. With a few adjustments, this becomes the monetary base, which can be thought of as the special money that is available to the banking system for the second step. In the second step, the private banks create money in the form of demand, and other checkable, deposits. They do this in the process of making loans. Essentially, the nation’s money supply is cash — the special money — plus bank deposits.)
Last year practically every newspaper in the country was telling you that the problem we faced was “deflation.” That was a gigantic piece of propaganda designed to frighten you into holding cash. Remember the flight to “safety” into T-bills and T-bonds? Most people fled from hard assets. These are the victims. They believed the propaganda of the establishment. When the debris of our collapsing society starts to come down, they will be its victims. Their assets will be “safe” in the US dollar as it loses its place as the world’s reserve currency.
