The annual increases in the dollar quantity of Federal Reserve dollars continues to decrease. Last month’s update showed a 7.5% increase compared to 12 months ago, whereas this month’s update shows an 7.4% increase, using data through July 2015. The annual change last year was 8.5% and the year before was 10.2%. (The increases are based on a 12 month moving average.) Everyone is focused on the changing interest rates, instead of just looking at the actual changes in the money quantity that show Federal Reserve is already applying the brakes to the economy. How can they do this? The banking system is a cartel. Almost all banks are part of the Federal System. We have this situation because the federal departments taxed the alternatives out of existence. See the updated charts showing the Quantity of Fed Reserve Dollars and the Annual Percentage Changes in the Quantity.
- Dollar geyser is ebbing, though doubled in nine years
- Doubling down on inflation.