Inflation, GDP, M3 and Debt Oh MY
Who are they kidding, you, em or the average citizen who knows his money doe not get him as much any more. Truly, do they think we are idiots, lets remind everyone what is going on with the dollar, inflation, GDP and debt. ITs time to break down the numbers and give us a little reminder of what on earth is propping up the dollar and the simple fact that they are downplaying the inflation, because it would destroy the dollar, so lets take a closer look.
CPI/Core 3.9% Year over year.
GDP growth in Chained 2000 Dollars 2.4% 11 693.1 / 11 412.6 = 1.0245781
GDP-CPI= -1.5%, thats right, a real loss in GDP with their under control inflation.
Oh wait the government only uses their phony non food/energy one, so lets try their style.
Real GDP change 0.1% for the year, thats pathetic, and it doe snot ecen include food or energy.
How about food Prices
5.1%, vs GDP 2.4%
Real -3.7% in RFPP or my own invention Real Food Purchasing Power.
Energy, there is now way it was a dip of 0.2% seasonally adjusted.
Gas -0.2%, sure, thats a bunch of garbage. So that means gas prices in year over year were positive toward our GDP, what the hell are they talking about, its a drag, not a plus.
Just look at oil, $60 to $120, thats 100%
Now we can buy 50% less oil, so our ROPP or Real Oil Purchasing Power has gone from 190 210 000 000 Barrels to 95 105 000 000 Barrels.
Now lets look at M3, it has grown at 20% this Quarter, which means it is now at 14 trillion adn 66 billion. SO the amount of GDP dollars per dollar has decreased.
GDP dollar per M3 $1.08
Last time $1.04, improvement, but not when you count debt or inflation.
With 4% Inflation, they are equal.
How about Debt, lets see how much borrowing has increased. Grr, Its unkown right now, but my guess of 5%, 10% or 15% to see what happened. Either it is 55.56 Trillion, 58 Trillion or 60.95 Trillion.
Either way, we have less debt per dollar.
5% Debt Growth $3.95 in debt per M3
10% Debt Growth $4.12 in debt per M3
15% Debt Growth $4.33 in debt per M3
Old Stat $4.01 in debt
Value of Dollar, -$3.08, end result, we increased debt, expanded M3 and have a negative GDP. This leaves us with more weak dollars, we just have more less weak dollars than before, with less and less Real power behind them.
For all you who doubted the dollar report, and said I was crazy or off my rocker, I present the reality. We had 20% Growth in M3 vs my modeled 10%, and under 1% GDp growth vs my 3%, and debt still grew, as I predicted.