Tuesday, October 11, 2022
Sunday, September 4, 2022
Money printing getting way ahead of output is the cause of the current inflation
US GDP last clocked in at $24.883 trillion in 2Q. The total public debt at the end of 2Q is $30.569 trillion.
That's now a mismatch of 123%, up from 105% in 2013, ten years ago, when the total public debt was $16.8 trillion and the GDP $16 trillion.
In other words, the debt has grown by 82% over the period while the GDP has grown by only 56%.
The debt represents spending money we do not have, and the increase in the debt represents the spending of more money we do not have. We simply create it out of thin air to facilitate the process. It doesn't matter what form it takes, whether in the form of Treasury securities or physical money.
Spending go whirr, Fed money machine go whirr, debt go whirr, and eventually inflation go whirr. Inflation is the payback for going into the debt for which we refused to pay at the time.
Debt draws forward prosperity . . .
But it should come as no surprise that the future we robbed has no prosperity in it, now that we have arrived there.
And people wonder where the inflation came from.
Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.
Tuesday, May 24, 2022
Ambrose Evans-Pritchard gives the microphone on Ukraine to the weak sisters and has-beens Henry Kissinger and Eric Cantor
Thursday, August 18, 2016
Toronto Canada is the new crucible for molten salt reactors
Monday, June 13, 2016
Ambrose Evans-Pritchard is voting for Brexit because EMU is the greatest economic crime of modern times
Thursday, April 28, 2016
German leftist critic of Trump's America First policy proclaimed the death of rapacious English and American free markets in 2008
Boltneck shakes hands mit Steinmeier in 2014 |
Thursday, July 30, 2015
Ambrose Evans-Pritchard is rightly exasperated by the oligarchy's attempt to criminalize Yanis Varoufakis
Thursday, July 16, 2015
Someone gets to Ambrose Evans-Pritchard: On the weekend Schauble was a devil, but now he's a misunderstood genius!
Monday, July 13, 2015
Greece left in a permanent debt trap under neo-colonial rule after historic weekend showdown in Brussels
Thursday, January 8, 2015
On GDP Mish sounds just like Ambrose Evans-Pritchard five years ago
Monday, December 15, 2014
Ambrose Evans-Pritchard says Britain's George Osborne is full of fiscal baloney
Thursday, July 10, 2014
Ambrose Evans-Pritchard oddly unaware high CO2 coincides with 17yr+ pause in global warming
Friday, May 30, 2014
24 from France's National Front elected to European parliament, 24 from England's UKIP
Thursday, May 15, 2014
Jim Cramer reads fellow Democrat Tim Geithner and suddenly discovers frugality: both men are only five years behind the curve
Wednesday, March 19, 2014
China Ups The Ante In The Race For Thorium Reactors
The earth is loaded with thorium, but so is the moon. |
Saturday, December 28, 2013
Total Credit Market Debt Owed Has Grown Just 16% In 6 Years, The Smallest Increase On Record
Thursday, April 18, 2013
Forget The "Threat" Of Deflation. Its Crushing REALITY Means Monetarism Is Doomed.
Galactic hitchhikers know this is the answer to everything. |
Thursday, April 11, 2013
Russia Was Just The Excuse For The Eurogroup To Steal From Cyprus
Wednesday, March 13, 2013
The Gas Hydrates Revolution Will Dwarf The One In Shale Oil/Gas
Friday, January 18, 2013
Central Banks In 2012 Bought 536 Tonnes Of Gold, The Most In Half A Century
To put central bank demand in 2012 in its context, compare this from Reuters, here:
Jewellery buying, the largest demand segment, fell 4.4 percent to 1,885 tonnes [in 2012]. Global coin minting is forecast to have dropped to a four-year low of 199 tonnes, down 19 percent from the previous year. ... On the supply side of the market, mine supply is expected to tick up 1.5 percent to 1,389 tonnes in the first half [of 2013].
In other words, falling demand in jewellery and coin minting was offset to some extent by central bank buying in 2012, supporting the price of gold, which began the year near $1,600 and ended it near $1,650.
The bankers obviously saw 2012 as a buying opportunity in the wake of weak demand.
Separately, as I noted here, central bank purchases year over year in March 2012 had ramped up to 400 tons from 156 in the prior period.
Predictions last summer, when prices were at their 2012 nadir, that central bank purchases going forward would come in at roughly 375 tons max obviously underestimated the reality significantly, way over 40%.