Friday, October 3, 2008

Paying For Your Burger With A Wheelbarrow of Cash

I just received the following e-mail from Howard S. Katz, the "Goldbug".

Dear Mitchell,

Sorry to ruin your day, but I just checked out the Federal Reserve Report. They have been increasing Reserve Bank Credit (their portion of the money supply) at a massive rate. It is up 56% in the past 3 weeks. Since the Fed's portion of the money supply is 57%, this computes to a 32% increase in the nation's money supply in 3 weeks (with more to come later when the nation's banks start lending out all those reserves).

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