I've been thinking the U.S. economy is headed for a crash for a while but i thought it would happen over a year ago, i'm amazed it hasn't, at least a correction of the value of the dollar. With major debt and an amazing amount of foreign investment(and falling confidence), we are on some seriously thin ice. Like they say, war is good for the economy, i guess that's one way to put it off, but its very thin.. not like the days when war meant sacrafice for more than soldiers.
anyway, the latest unkown news about our economy is the end of reporting the circulation of dollars in the M3...
http://www.kitco.com/commentary/turk.htm
The End of M3 – Hiding the Truth About Inflation
Each week the Federal Reserve reports various measures of the US dollar money supply. One of these, M3, is the total quantity of dollars in circulation. Last week the Fed stopped reporting M3, explaining as follows the reason for their decision:
“M3 does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary policy process for many years. Consequently, the Board judged that the costs of collecting the underlying data and publishing M3 outweigh the benefits.”
To the casual observer not familiar with the nuances of central banking, the above stated reason may seem plausible. But those with experience know that central bankers only tell you what they want you to hear. Therefore, what is the real reason the Federal Reserve stopped reporting M3?
The answer is very simple. The Federal Reserve wants to hide the truth. They want to hide the fact that they are inflating the dollar.
The Federal Reserve says that M3 is no longer needed, and that M1 and M2, which only measure part of the total quantity of dollars, are sufficient. But look at the following table which I’ve taken from the Federal Reserve’s last money stock report that included M3.
Inflation arises from creating too many dollars. Therefore, compare the growth rates of M1 and M2 to that for M3.
Regardless whether you use the 3, 6 or 12-month reporting period, by looking at just M1 or M2 growth rates, one would get the impression that the level of current dollar creation was not unusual and that as a consequence, no inflationary pressures were building within the economy. But M3 reveals the truth, and the truth is that the Fed is pumping up the money supply. The total quantity of dollar currency is soaring, which is also apparent from the following chart which shows the annual growth rates of M3 at each month end since January 1975....
http://www.kitco.com/commentary/turk.htm
many headlines are saying this is an indiction of massive inflation, could be, but secrecy doesn't lend to predictability.
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