1-800-822-8080 Contact Us
Select Page

One of the oldest Wall Street terms – typically utilized to describe impotent government or Central bank economic policy – is “pushing on a string.”  If you’ve ever tried to control how a string moves when you push on its end, you’ll understand EXACTLY what this means.  In other words, it’s impossible.

As regards current Central bank policy, they need to invent a new term for uselessness; as despite TRILLIONS of dollars of MONEY PRINTING – as well as euros, pounds, and other fiat trash, the great majority of the world is in recession or on the verge of such….

Paper Reserves in CB

Not to mention, the DEBT incurred in doing so (this is just the U.S.)…

US National Debt

…and subsequent INFLATION…

US Food Prices 06-13

…of essentially EVERYTHING you “NEED VS WANT”…

US Annual Gasoline Prices

However, no metric better measures the futility of Central bank monetary expansion – or alternatively put, its “DIMINISHING RETURNS” – than a declining velocity of money; i.e., how much people actually spend the money that’s printed.  And per the chart below, the Fed is abysmally FAILING to generate the response it desires; as care of a plunging REAL economy, a “NEW EMPLOYMENT PARADIGM” of low paying, part-time jobs, and the aforementioned, surging debt levels, the public simply doesn’t have the means to increase spending…

Velocity of M2 Money

Oh, the bankers that receive the bulk of the Fed’s money are doing just fine – spending “UNPRECEDENTED” amounts on luxury items “the 99%” couldn’t dream of; as they can compound ZIRP funds into “risk-free” profits – via the carry trade and other nefarious activities.  But for the rest of the population – worldwide – all we see is the aforementioned DEBT and INFLATION; which eventually, ALWAYS causes collapsing confidence in PAPER currencies.  And when that occurs – which frankly – could be any day the way things are going – which assets do you think will benefit the most?