The publisher of the December 1916 issue of the Bankers Magazine published an editorial opinion titled, Our Swelling Circulation. Here are some clips from that article.
Not three years after the passage of the Federal Reserve Act were Fed Res central bankers already causing mischief in the economy.
Currency Inflation
As you can see, there has been a ridiculous swelling of currency, i.e., dollars in circulation along with demand deposits.
This first chart is a semi-log chart, which also is known as a ratio chart. It took 19 years for dollars per American / American resident to double, between 1959 and 1978. It took 16 years, between 1982 and 1998, for dollars per person to double again. Between the 1999-2000 crash to all-time peak True GDP in 2007, dollars per person rose only 15.75%.
After which, it took only seven years for dollars per person to double between 2007 and 2014. By then Fed Res central bankers began the foolish policy of quantitative easing. Fed Res CBs doubled the currency yet again in only six years.
Yet, such efforts have been folly as you will see in the next chart. The more dollars Fed Res CBs pump into the economy, the more it shrinks.
True GDP Each Dollar of Currency
And dollars of True GDP to currency has been falling. True GDP removes the effects of inflation, i.e., bank credit.
"Real" GDP versus True GDP
The US government's Bureau of Economic Analysis publishes Real GDP numbers. Those numbers are fake because the BEA minions use past inflated GDP to deflate currently inflated GDP. That, of course, is like trying to measure a growing line with an ever expanding ruler.
The USA economy has been collapsing since the crash of 2007-2008. If this were not so, there would have been no reason why Fed Res central bankers have bought over $8.5 trillion of US Treasury notes and bonds along with mortgage-backed securities of US government sponsored enterprises like Freddy Mac and Fannie Mae.
Doing so has allowed Congress to spend many trillions into the economy, in effect, swelling the currency per person especially at the wrong time, during the politicians-imposed lock downs that caused supply chain shortages for what will end up being a fake pandemic over a rather benign virus that has no known killing mechanism unlike viruses like ebola, meningitis, hepatitis and so on.
During 2020 and 2021, the Federal Reserve central bankers should have imposed strict reserve requirements and should have jacked up interest rates so that people could buy little except what was being produced, food and energy.
This at least would have froze the growth of inflation, which always means the rise of bank credit.
Fed Res central bankers should have done nothing during the 2007 - 2008 crash. In their effort to save big banks and hence the richest people in the USA from ruin, through Quantitative Easing, Fed Res central bankers have ruined the USA.
Ideally, there would be no Federal Reserve. Their bankers do not understand the system, which they attempt to micro-manage.
You better buckle up because we are going to be living in an economic depression worse than the so-called Great Depression. Already, we have been living in it since 2009. Most do not know this truth. They will come to know it in the coming year.
If you are smart, you will buy whiskey, ammo, rice, flour, anything that you can store for months into years. Your dollars will become increasingly worthless as it is. Whiskey is something you can trade. Stock up on beer too. You can trade cans of beer for other things.
Likely, the 2020s will be a decade of rising prices and falling buying power. The inflation already baked into the poisoned pie that is the economy assures of this. Keep in mind always, inflation is the cause. Rising prices are the effect. Rising prices result from inflation. Rising prices never cause inflation because nothing is causal for itself.
Super Inflation
Between 2020-2022, the Federal Reserve engaged in Super Inflation, or what used to be called hyper-inflation. We are seeing the beginning of the effects of this Super Inflation.
A fiduciary monetary system of irredeemable bank note currency has proven itself to be a disaster. A return to money, i.e., coined metal by weight and fineness, even under a system of multiples of reserves commercial banking would be prudent. This time though, rates of interest ought to be set by speculators in futures markets rather than by a round table of self-important moronic stooges who are puppets of major multi-trillion dollar NYC banks and a handful of multi-trillion dollar investment fund managers.
Gab It
