The Mint Money Supply Digest for May 10, 2013

5/10/2013 Portland, Oregon – Pop in your mints…

This week’s M2 Monetary base shrunk by roughly $100 billion while the M1 Base grew by $80 billion.  Generally, this means that more Fed cash has left the hypothetical realm and is out in the world, causing mischief in the form of bidding up prices of everyday goods.

Treasury yields have increased since we last checked in to the tune of 14 basis points.  Given that Treasury supply has shrunk over the past month (yes, the US Government actually ran a temporary cash surplus) this decline in yield is not insignificant and may reflect a fundamental change in the dynamic between the Fed and the economy.

Over the past several years, the markets have become accustomed to Quantitative easing taking the form of the Fed printing dollars, lending them to banks at roughly 0.12%, who then soaked up the Treasury supply.  The fundamental change that is taking place is that the QE spigot is no longer being soaked up by the Treasury supply, rather, it is flooding the basements of equity markets around the world.

Until now, the commodity markets have remained surprisingly tame in the face of the monetary tsunami that is rushing over the planet.  We suspect that the moment may be short lived, and that the time to own anything but dollars is once again at hand.

Yes, fellow taxpayers, the world’s first world wide crackup boom is coming to an economy near you.  Batten down the hatches!

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for May 10, 2013

Copper Price per Lb: $3.35
Oil Price per Barrel:  $94.57
Corn Price per Bushel:  $6.75
10 Yr US Treasury Bond:  1.90%
Mt Gox Bitcoin price in US:  $117.78
Gold Price Per Ounce:  $1,437 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.5%
Inflation Rate (CPI):  -0.2%
Dow Jones Industrial Average:  15,066
M1 Monetary Base:  $2,645,900,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,475,500,000,000