The Mint Money Supply Digest – June 27, 2013

6/27/2013 Portland, Oregon – Pop in your mints…

With the last trading day in June in sight, the US equity markets are staging a comeback from their recent collapse.  Nearly everything is along or the ride except for currency alternatives such as Bitcoin and Gold.

While we think the stock markets will continue to post nominal highs, it is painfully apparent that the action over the past few days is smells more of window dressing than any serious near term move higher.  After all, most working Americans are due a statement of their retirement account on June 30, and their asset managers want to make sure they have a number appear that will ensure their employment for another quarter.

In the real world, where window dressing in not an issue, there is a serious problem occurring.  On one hand, there is an unprecedented amount of liquid funds available for deployment.  On the other, there is a world on edge, reluctant to take the bait.

If history is any guide, the recent rise in interest rates will kick start the exchange of money (for we are loathe to call it economic activity) and the central bankers of the world will have all the velocity they can handle to go along with their unprecedented creation of currency.

It will be quite a ride, and when it is finished, we will either have a large increase in overall price levels and a severely disjointed and dysfunctional economy, or we will have a full scale currency collapse and a severely disjointed and dysfunctional economy.

Either way, dollar holders lose.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for June 27, 2013

Copper Price per Lb: $3.02
Oil Price per Barrel:  $96.82
Corn Price per Bushel:  $6.67
10 Yr US Treasury Bond:  2.48%
Mt Gox Bitcoin price in US:  $102.59
FED Target Rate:  0.09%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,201
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  0.1%
Dow Jones Industrial Average:  15,024
M1 Monetary Base:  $2,452,200,000,000
M2 Monetary Base:  $10,628,800,000,000