Robert Prechter just published an 8 page paper "Inflation, Deflation and the Federal Reserve System". It is pretty good -- I learned more than I expected.
If I understand it right, bank reserves of physical cash are about 55 Billion. M2 is 5.5 TRillion (ratio of 1/100) and all US debt is 30 TRillion (ratio of 1/550). In very dry humor he concludes, "For our purposes, it is enough to say that the gap itself, and therefore the deflationary potential, is historically large". I guess this is the anti leverage that supports claims of gold going from $300 to $5,000 USD/ OZ -- a paltry 16 times greater. "The FED has created more money in the last 3 years than all the money it created from 1913 up until this time." -- RE McMaster This is going to be interesting! Paragraph headings: The Origin of Intangible Money What is a Dollar How the federal Reserve System Manufactures Money How the Federal reserve Has Encouraged the Growth of Credit The net Effect of Monetization Broader Ideas of Money A House of (Credit) Cards A Reversal in the Making How Big a Deflation March Elliott Wave Theorist http://elliottwave.com/subscribers/default.asp No affiliation, just thought it was well written, Jeff --- You are currently subscribed to e-gold-list as: [email protected] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
