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Holy bend over and cough Batman! M2 vs the Fed!



November 25, 2009 – Comments (3)

This won't be a long post! It's meant for you to research a few things for yourself.

According to m2 data, the total amount of US dollars floating around in the world is about 8 trillion dollars. Realistically it's closer to 7 trillion dollars, but we'll go with 8 for these purposes. Our debt is over 12 trillion dollars. So realistically, if we wanted to pay off everything that we owe tomorrow, we could pay it off with 50% inflation if we were willing to give up the country's entire historical productivity. This doesn't include the debt of the Fed though! The Fed has another 2 trillion dollars of debt on their balance sheet. So if we go back to my original estimate of m2 at 7 trillion and a total debt of 14 trillion including what the Fed owes, we could trade every accomplishment we have ever made as a country and 100% inflation for the chance to break even.


(especially you tiny Tim!)

3 Comments – Post Your Own

#1) On November 25, 2009 at 10:59 PM, tweetybirdvicky (< 20) wrote:

This whole market is a bubble. I should make a cartoon of a man on a hill saying - if we build the bubble they will come! (We have become addicted to and dependant on bubbles) Face it - the stock market has deteriorated into microcosms of Ponzi schemes and we DO NOT CARE just as the Chinese DO NOT CARE. It does not pay to care and be chewed alive on your completely sane and logical short positions. Me cannost help but ask - your thoughts on Gold and Silver..( I truly believe Since our stock market bubble has grown large enough to prick, we need to move on to another greener pasture -- shall that be gold? As the IN crowd has already amassed their positions they can proclaim to the puppets - excuse me I mean people - that there are smidgins of the Ponzi yet to be gained if they but pile into this trade along with vast and various countries who also need a new Ponzi -- excuse me -- investment opportunity........) This may be the biggest of them all........ I see 3900.00 per oz -or is it the price of my dinner? I cannot help but say thankyou to you in this vast ether it's great that you take the time to respond personally. 

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#2) On November 25, 2009 at 11:42 PM, ChrisGraley (28.73) wrote:

Listen tweetybird, if everyone agrees on anything, then they are all wrong! If you can figure out what they are wrong about, then you stand to make a lot of money.

My personal bet is silver. I started that bet a few years ago.

I feel the same emotion that you do, but I'm over it.

I really wanted us to succeed, but we have too many citizens that like to be dragged around by the nose ring from their favorite political party.

Everyone is in this thing to profit, so my best suggestion is to profit from the puppets.

They like being puppets!

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#3) On December 04, 2009 at 7:03 PM, traderbach (< 20) wrote:


Thanks for the overview!  You probably don't remember but you gave me your opinion on a list that I had a couple of months ago & I followed some of your advice which reinforced my gut feeling; seems to be panning(no pun intended) out pretty well so far. GU is a conundrum right now though; some think they are changing over to chemicals from biofuels and I started twitching towards selling but so far I'm hanging on to my position; wonder what you think?  Any chance of some silver companies that you like?  I'm guessing you are going for the miners?

Appreciative of you sharing your thoughts.



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