THE ECONOMY AS A PATIENT
FOUR NUMBERS TO WATCH TO SEE YOUR ECONOMIC FUTURE
There are four magic numbers that determine the economy of a nation within the next two years. In this article, I will explain what those numbers are, and I will teach you how to understand how they function, in a manner that any bright teenager can understand.
HERE ARE THE NUMBERS
1. THE MONEY SUPPLY
2. THE DOW INDUSTRIAL AVERAGE
3. THE PRICE OF ENERGY
4. THE NUMBER OF FAILING COUNTRIES
THE MONEY SUPPLY
You have heard of the BLOOD SUPPLY. The amount of blood in your body. You know that if you have too little, you are anemic, and if you are losing blood fast, you die. It’s as easy as that! Economists working for the government and large banks, measure the money supply on a daily basis.
The money supply, like the amount of blood in your body, is a complicated quantity to measure. The blood in your body is located in your arteries, your veins and between your cells. That’s simple to understand.
The Money in your country is located in
M1 POCKETS (ARTERIES)
M2 BANKS (VEINS)
M3 FINANCIAL INSTITUTIONS (BETWEEN THE CELLS)
The largest quantity, like blood, lies between the cells. The Government doesn’t want you to know how much is there! They do not publish M3. I find this fact fascinating. A government that hides information from the people is a government ready to change. The Brits, however, also track M3, and here are their surprising results:
The M3 figures – which include broad range of bank accounts and are tracked by British and European monetarists for warning signals about the direction of the US economy a year or so in advance – began shrinking last summer. The pace has since quickened.
The stock of money fell from $14.2 trillion to $13.9 trillion in the three months to April, amounting to an annual rate of contraction of 9.6pc. The assets of institutional money market funds fell at a 37pc rate, the sharpest drop ever.
This rate of contraction has never been seen since the Great Depression of the 1930′s! Money is leaking out of the body of the U.S. Economy at an exceptionally fast rate. When there is no money, it is the equivalent of no blood. We all know what “No blood” means.
During the Great Depression, money left the banks and was sequestered in vaults around the world. The rich of the 1930′s were extremely frightened by what had happened in Russia, where a wealthy country turned to Communism and all money, in any form, was confiscated.
They knew that if Communism came to the U.S. and Europe their wealth would disappear instantly. In that period, paper currency was convertible into gold. Instead of paper, their wealth was sequestered in the form of gold.
This act turned a recession into a Great Depression. As is well known, the price of gold is escalating dramatically today. Are we seeing the beginning of another 1930′s?
TO BE CONTINUED.
