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Jeff Nielson is one of the rising stars in the PM commentary world.  I came across his work a year ago, which typically mirrors my thoughts EXACTLY.  In fact, a reader asked me this weekend if I “trained” him…

Phony ‘Analysis’ Can’t Hide Metals Manipulation – Jeff Nielson

In the above article, he writes of the “FRINGE BENEFITS” of HFT trading; essentially, a manipulation operative that has commandeered financial markets – to the detriment of the 99%, for the benefit of the 1%…

High frequency trading” (the euphemism behind which these manipulative algorithms hide) could never possibly be justified in legitimate markets. The minor savings they provide in trading costs (for a handful of bankers) could never be a reason to allow the brute-force application of these computer programs (with massive sums of money behind them) when the only possible result could be mass-manipulation.

Reading this quote reminds me of the Federal Reserve’s December 2005 decision to discontinue publication of M3; at the time, the broadest measure of (OVERTLY admitted) money supply.  From 2001 through 2006, M3 increased from $7.2 trillion to $10.1 trillion; thus, inflation was compounding by 7% annually.  Put differently, M3 money supply grew by $1.6 BILLION per DAY…

At the time, a youthful, idealistic “Great Depression Expert” named Ben Bernanke was just two months from being appointed Federal Reserve Chairman.  Thus far, his only notoriety had emanated from a 2002 speech entitled, “Deflation: Making Sure “It” Doesn’t Happen Here” – when he stated the following:

U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.

According to the theretofore nicknamed “Helicopter Ben,” the Fed discontinued this very important monetary metric for the “FRINGE BENEFIT” of reducing administrative costs (LOL)…

M3: This Is What Bernanke (And Others) Have To Say  – Monday, December 05, 2005

…per his quote below…

The Federal Reserve decided to discontinue publication of the monetary aggregate M3 because the costs of collecting and processing the underlying data were judged to exceed the benefits.

…which turned out to be a whopping $1.5 million annually – an incredulous figure emblazoned on my mind for ETERNITY – as this excuse was so comical

Discontinuance Of M3 Will Save Fed 0.00000699% Of Income

Of course, the REAL reason M3 was discontinued is far simpler – which anyone with half a brain can figure out…

The Real Reason Why M3 is Abolished

…per the article’s author, Stefan Karlsson…

Why was M3 publication discontinued?  It certainly wasn’t because the Fed Governors decided M2 better reflected true money supply. Nor was it because M3 correlates less with GDP and financial market activities than M2 – in fact, it usually correlates more.  So why did they do it?  I think it all comes down to one thing: M3 have during the last few years increased more than M2.

Without even going into off-balance sheet “secret loans” – such as the $16 trillion bestowed on global banks, corporations, and sovereign nations in 2008-2010…

Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts

…and accounting gimmickry such as the Fed’s European “swap facility” – which allows it to PRINT MONEY without reporting it as such…

Central bank liquidity swap

…M3 has since ballooned from $10.1 trillion to $14.9 trillion, compounding from 2006-2012 at the same 7% annual rate; or $6.8 BILLION per DAY.  In other words, DAILY monetary inflation has more than quadrupled since M3 was discontinued.  Capeche?

In 2012 America, essentially EVERYTHING the government says is a LIE; particularly when it purports to provide the public with “FRINGE BENEFITS.”

PROTECT YOURSELF, and do it NOW!

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