Topic: Current Monetary Base

[Weisshaupt]

You might want to sit down for this one....

Massive upswing in monetary base
When that money starts to move, we're in for SERIOUS inflation.

[Libertas]

It confirms what I've always suspected, no doubt they've been sitting on this data due to not wanting anyone to hinder QE plans.  No wonder the FOMC is starting to show signs of division recently.  This is all starting to make sense, eh?!

Hey, where did GreatDebator go off to?  Somebody might want to let him know that the Fed's big vault of idle  cash has been released!

[Libertas]

I dug into this some more.

http://research.stlouisfed.org/publications/usfd/page6.pdf

Looks like M2 (includes cash equivalents) is running up too, so I suspect that some of this Fed stash is shoring up member bank reserves to meet rising consumer demand.  Physical cash is just one component, cash and non-cash transactions will be conducted and that demand is being utilized some how so the result has to be inflationary.  At some point the Fed is going to have to bite the bullet or their ability to respond to hyperinflation will be useless.