The Mint Money Supply Digest for May 28, 2013

5/28/2013 Portland, Oregon – Pop in your mints…

Jimmy Buffet hit the jackpot when he penned a three chord melody back in 1977:

Margaritaville:  Welcome to ‘Margaritaville,’ the most lucrative song ever.

While it is difficult to comprehend the moral implications of the fact that Margaritaville currently holds the throne as the most lucrative song ever, what is not difficult to comprehend is its allure, a laid back, carefree lifestyle tinged with a hint of regret and melancholy made tolerable by the beach and the “frozen concoction that helps me hold on.”

It is a lifestyle whose allure quickly fades to the harshness of its demands.  Beyond the headaches and marked lack of depth in human relations, alcohol sans moderation will inevitably hasten one’s march to the grave.  Indeed, despite the headlines received by the AIDS epidemic, warfare, and famine, it is often an addiction to cheap alcohol and that contributes to shortened lifespans in developing nations.

There is no way around it, alcohol is hard on one’s system.

As alcohol is hard on the human system, cheap money is hard on the real economy, and will eventually be purged.  At the moment, the M1 money supply is collapsing as the increasing doses of cheap credit have an ever decreasing effect on the real world hangover that awaits at the end of this binge.

Expect the Federal Reserve and the Central Banks of the world to fire up the blenders and roll out the kegs, for a drunk economy is the only one they know.

You can watch Buffet perform his three chord pot of gold here: 

How long will the frozen concoction help them hang on?  Probably not too much longer.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint


Key Indicators for May 28, 2013

Copper Price per Lb: $3.30
Oil Price per Barrel:  $95.01
Corn Price per Bushel:  $6.66
10 Yr US Treasury Bond:  2.13%
Mt Gox Bitcoin price in US:  $128.50
Gold Price Per Ounce:  $1,381 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.5%
Inflation Rate (CPI):  -0.4%
Dow Jones Industrial Average:  15,409
M1 Monetary Base:  $2,429,700,000,000 ANOTHER MARKED DROP
M2 Monetary Base:  $10,544,600,000,000