Charting the Course to $7 Gas

[frang0nve]

Interesting article from the Austrian School of economics:

http://mises.org/daily/5223/Charting-th ... e-to-7-Gas

EXTRACT:

The next chart is the Fed's monetary base. Note the vertical movement during and after the Depression of 2008: an increase from around $800 billion to just over $2.4 trillion.




This is the most worrisome chart I have ever seen. By comparison to what Bernanke has done, take a look at the blip (circled in red) that Greenspan caused just after the dot-com bust in early 2000. This is not the kind of comparison that makes it to CNBC or the front page of the Wall Street Journal.

If 1 percent interest rates and that small Greenspan monetary increase back in 2000 caused the boom and ultimate crash of 2008, then what will be the ultimate result of our current extended course of 0 percent interest rates and a 300 percent increase in the monetary base?

Cheers

[PebbleTrader]

Thanks for sharing.

[Lyporen]

Wow! That's a chart! What happened?

[bredin]

Quantitative Easing happened.

G.

[noushina]

Wow! That's a chart! What happened?

Newest pic.

WOW if we print enough of it our national debt will be gone!

[mysticalchemist]

I've been playing with WTI oil a bit, expecting an upward rise, but no. This is the monthly chart.