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The Mint Money Supply Digest – June 24, 2013

6/24/2013 Portland, Oregon – Pop in your mints…

And then there were two.

The liquidity drain initiated by the People’s Bank of China has caused a fire sale on financial assets across the globe as Chinese banks scramble to make various margin calls in the face of double-digit overnight rates.  Lee Adler, over at the Wall Street Examiner, offers some insight into the big squeeze currently underway:

US and Japan Pump It, Chinese Dam It and Suck, And Europe Sullenly Suffers Shrinkage

For the uninitiated, we beg of you to take a step back and to leave, just for a moment, any thought of “efficient market” hypotheses and market fundamentals behind and see the financial world for what it is:  A bunch of corporations with large credit card bills to pay and margin calls to meet.

Like anyone who has a large credit card bill to pay or margin call to meet, the ability to meet the obligation is more often than not determined by the willingness of other large corporations in similar situations to lend them money.  If they can, great, the credit rolls over.  If not, assets must be liquidated so that the debt can be paid.

The flaw in efficient market theory, with regards to financial markets, is that it implies stability when, in fact, most debtors, especially big ones, only liquidate assets as a final option.  As such, this type of liquidation often occurs suddenly and with little warning, hence the feeling of panic and cascading financial markets.

At their core, equity markets represent decisions at the margin. They often reflect this type of liquidation in an exaggerated manner.  In an odd way, this sort of whiplash seems to be the only way to spur Central bankers into action.

The actions of the PBoC suggest that they have had enough of the easy money policy that has dominated Central Bank actions for the past five years.  They have pulled the plug.  Does it have anything to do with Mr. Snowden?  Who knows, but it is what it is.

As it stands now, the Federal Reserve and Bank of Japan now stand alone on the mountain of insane monetary policy, watching the smoke plumes rise.

Anyone who has perused The Mint no doubt has noticed that we keep a relatively small collection of coins online.  This serves a dual purpose.  First, it allows us to quickly grab marketing copy should we have a particular coin in stock.  Second, it allows us to savor the coin as we attempt to put its dual faces into words.  Normally, this can be a tedious and relatively dull process.

1 OZ .999 Fine Silver First Anniversary Mount St. Helens Harry Truman Commemorative Round – 1981
1 OZ .999 Fine Silver First Anniversary Mount St. Helens Harry Truman Commemorative Round – 1981

Today was different, as we came across a relatively rare 1 OZ .999 Fine Silver First Anniversary Mount St. Helens Harry Truman Commemorative Round, minted in 1981.  For those who are unfamiliar with Harry R. Truman, we offer our marketing copy as a brief descriptor:

On one side of this coin is a bust of Harry R. Truman, the caretaker of the Mount St. Helens Lodge at Spirit Lake who stubbornly refused to leave his home even as the historic eruption was imminent. Truman was 84 when the Mount St. Helens erupted and is presumed to have died along with his 16 cats and 56 others that fateful day on May 18th, 1980. Truman’s bust is surrounded by the inscriptions “Courage,” “Spirit,” “Determination” above and his name, “Harry R. Truman” and the years he was born and died, “1896 – 1980″ below. The letters “KU” appear to the right, their meaning is unknown.

On the other side of this reeded coin is a depiction of Mount St. Helens erupting flanked by the inscriptions “One Troy Ounce” and “.999 Fine Silver,” to indicate its weight and silver content. The top of the coin, just above the smoke plume, is adorned with the inscription “First Anniversary.” Below the mountain are inscribed “1980 – 1981,” and the words “Mount St. Helens.” These beautiful coins are a great way to inspire your friends, loved ones, and co-workers by recalling the finer qualities of a man who became a hero for sticking by his desire to ride out a violent act of nature, come what may.

Mr. Truman, may he rest in peace, in many ways represents the Fed and BoJ today.  The other Central Bankers of the world have stepped cautiously back, away from the dreadful inflation for which the eruption of Mount St. Helens will serve as a handy metaphor of today.

1 OZ .999 Fine Silver First Anniversary Mount St. Helens Harry Truman Commemorative Round – 1981
1 OZ .999 Fine Silver First Anniversary Mount St. Helens Harry Truman Commemorative Round – 1981

Not Mr. Bernanke and his Japanese counterparts.  Both the US Dollar and Yen have been on the mountain longer than many of their counterparts, and their current caretakers are convinced that the bubbling inflation that their policies are stoking will simply blow over as they has in the past.

Are they right?  Or is it time to move away a safe distance from the mountain?

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for June 24, 2013

Copper Price per Lb: $3.03
Oil Price per Barrel:  $94.85
Corn Price per Bushel:  $6.53
10 Yr US Treasury Bond:  2.55%
Mt Gox Bitcoin price in US:  $122.89
FED Target Rate:  0.10%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,283
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  0.1%
Dow Jones Industrial Average:  14,660
M1 Monetary Base:  $2,432,200,000,000
M2 Monetary Base:  $10,621,100,000,000

An Intro to Why What We use as Money Matters – The Calling

6/21/2013 Portland, Oregon – Pop in your mints…

A quick peek at the financial markets over the last two days may lead one to think the world is ending.  From what we can tell, investors are attempting to front run what they perceive to be an earlier than anticipated FED exit from its unprecedented support of the Bond market to let it fend for itself.

Lest us be clear, the Federal Reserve will not exit when anyone expects it.  The mere prospect of it, which began to transmit itself through the markets on Wednesday, caused Treasuries to collapse towards normal and overnight lending in China to seize up while leaving equities and commodities as collateral damage.  M1 even managed to collapse again to $2.4 trillion.  These are hardly long-term (or short-term, for that matter) Fed goals.

If Fed history is any guide, it shows that the Fed knows absolutely nothing.  For example, can you predict what GDP or unemployment will be in one, two, or three years?  Neither can the Federal Reserve governors, who are tasked with controlling such matters.  The only difference between the man on the street and a Federal Reserve governor with regard to such matters is that the wild guess of the man on the street is more likely to be accurate than that of the Fed governor, but that is a tale better wound by those more qualified to explain such matters, such as Lee Adler at the Wall Street Examiner.

We are gearing up to publish our Treatise on political economy, Why What We use as Money Matters, before we head out on holiday this year.  It is more than a treatise, it is our calling (more below).

The current plan is to copy-edit and self publish this important work unless we are successful in landing an interested publisher in the interim.  It is urgent that mankind examine what is in their wallet, for it is currently an invisible hand steering mankind towards a myriad of disasters that are either unfolding or about to unfold.  These man-made disasters can be undone, if only a few can grasp what we have to share.

Stay tuned for the release and enjoy the brief introduction below!

Introduction:  The Calling

Owen Meany had a calling.  The hero in John Irving’s 1989 New York Times bestseller A Prayer for Owen Meany which was later loosely adapted to the feature-length film Simon Birch, believed himself to be God’s instrument in an unswerving and often shocking manner.  Owen Meany’s calling was as clear to him as it was confusing, for while he could see the end result, he could not foresee nor fully understand the varied circumstances which guided him to his encounter with destiny.

We believe that, like the fictional Owen Meany, every human being that is alive or has ever lived has a calling, something specific that is to be done in this world that only they and they alone can accomplish.  The task may be ignored, but it cannot be delegated.  It may require the collaboration of many to accomplish, but the burden and drive to complete the task rests with one individual.

If the task does not get done, it does not get done, and the world will be all the worse off for it.  On the other hand, if it is accomplished, all the host of heaven will applaud, for every calling that is recognized and pursued is not simply another task to be completed, it is an indispensable stitch in the fabric of what may be if only all of humanity would accept the call to a higher purpose that, far from being reserved for the exceptional, is the birthright of every human.

The following nine volumes are our calling.  Taken individually, they are a winding exploration of philosophy, monetary theory, economics, dual entry accounting, climate change, and eschatology.  Taken together, they are a treatise on political economy of such gravity and importance that, if fully understood by even one person among a million, will bring the activities of mankind into a perfect balance with nature.

Will that person be you?

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for June 21, 2013

Copper Price per Lb: $3.10
Oil Price per Barrel:  $93.92
Corn Price per Bushel:  $6.68
10 Yr US Treasury Bond:  2.17%
Mt Gox Bitcoin price in US:  $115.00
FED Target Rate:  0.10%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,299 THE GOLD RUSH IS ON HOLD FOR THE SUMMER!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  -0.4%
Dow Jones Industrial Average:  14,799
M1 Monetary Base:  $2,432,200,000,000
M2 Monetary Base:  $10,621,100,000,000

The Mint Money Supply Digest for June 17, 2013

6/17/2013 Portland, Oregon – Pop in your mints…

Over the past week the M1 money supply has come roaring back from its relative collapse over the prior two weeks.  Today, the measure sits at $2.6 trillion.

For the uninitiated, the M1 and M2 Money supply measures, published on a weekly basis by the Federal Reserve, are defined as the following:

M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) traveler’s checks of nonbank issuers; (3) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (4) other checkable deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union share draft accounts, and demand deposits at thrift institutions. Seasonally adjusted M1 is constructed by summing currency, traveler’s checks, demand deposits, and OCDs, each seasonally adjusted separately.

M2 consists of M1 plus (1) savings deposits (including money market deposit accounts); (2) small-denomination time deposits (time deposits in amounts of less than $100,000), less individual retirement account (IRA) and Keogh balances at depository institutions; and (3) balances in retail money market mutual funds, less IRA and Keogh balances at money market mutual funds. Seasonally adjusted M2 is constructed by summing savings deposits, small-denomination time deposits, and retail money funds, each seasonally adjusted separately, and adding this result to seasonally adjusted M1.

In layman’s terms, the M1 Money supply is what we refer to as “Money on the street,” or cold hard cash.  It is the part of the money supply that is otherwise unencumbered or loaned out on float.

The M2 Money supply is perhaps best defined as the Money on the street (M1) plus all of the money that customers think is held at banks but is really loaned out.

In the past, the Federal Reserve also published the M3 (Broad) Money supply measure, which was essentially all of the money that customers had, thought they had, and/or thought that they could receive (via the inclusion of money market funds and repo instruments).  It was perhaps the truest measure of the money circulating in an economy  in aggregate.  In addition to base money, demand deposits, and time deposits, M3 included what the largest treasuries were holding in quasi money instruments . The Federal Reserve stopped publishing the measure on  March 23, 2006 as it began to launch into the stratosphere.

While the Broad money supply (M3) may have crossed the line into credit instruments {Editor’s Note:  Here at The Mint we recognize all Central Bank notes as credit instruments by definition}, it was an excellent proxy for inflation, for it gave demonstrated the sum total of how many players were participating in the game of monetary musical chairs that the banks and large treasuries play every evening when they settle up.

The M2/M1 Ratio

Today, we submit for your perusal, a graphic of the M2 Money supply divided by the M1 Money supply (the M2/M1 Ratio) by month for the data sets since January 1, 1959, the first year that the data is easily retrievable, through the first week of June.

Historical Ratio of M2 / M1 Money Supply Measures
Historical Ratio of M2 / M1 Money Supply Measures

For purposes of interpretation, the chart shows the degree to which the M1 Money supply is “leveraged” by commercial banks to create what is reported in the M2 figures.  Bear in mind this ratio is a function of both bank reserve requirements and consumer behavior.  Generally speaking, the M1 and M2 Money supply measures have been increasing over the span of the chart.

The ratio between them, however, has been on a general increase as well, meaning that the M1 measure has been leveraged.  This leverage appears to have peaked around 5.4 during the meltdown of late 2008 and early 2009.  Ever since then, it has been on a steady decline and currently stands at 4, just a shade above the straight average of 3.7 for the entire data set.

At a glance, it would appear that the economy, in terms of the M2/M1 ratio, is returning to a healthy balance.  In practice, this means that the game of musical chairs that occurs at the Fed settlement each night is a bit less stressful for the participants.

Unfortunately, this ratio appears to be historical with little predictive value save that perhaps a ratio of 5/1 being an indication that the monetary base is overextended.

For the moment, with the downward trend in the ratio intact, it appears that the monetary base that the Federal Reserve has gone to great pains to pad via its QE programs, is intact and ready to support an increase in economic activity.  Howver, one must keep in the back of their mind that the money supply itself is fragile, and if confidence in the Fed were to evaporate, all bets are off.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for June 17, 2013

Copper Price per Lb: $3.19
Oil Price per Barrel:  $97.78
Corn Price per Bushel:  $6.68
10 Yr US Treasury Bond:  2.17%
Mt Gox Bitcoin price in US:  $106.99
FED Target Rate:  0.09%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,385 THE GOLD RUSH IS ON HOLD FOR THE SUMMER!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  -0.4%
Dow Jones Industrial Average:  15,180
M1 Monetary Base:  $2,634,300,000,000
M2 Monetary Base:  $10,586,200,000,000

The Mint Money Supply Digest for June 11, 2013

6/11/2013 Portland, Oregon – Pop in your mints…

Here at The Mint we have been invited to take part in a summer ritual dating back to 1887, one which we have abstained from participating in for one reason or another for twelve years:  Softball.

We began what was a reintroduction to the ritual last night in a double header.  There was much familiar and generally a good time was had by all.  What was unfamiliar was the unexpected mind/body dynamic that took place as we laced up the cleats, grabbed our glove, and pulled our hat down.

As we trotted out to center field, a position chosen entirely at random as time constraints forced our team to tacitly choose positions on the fly, our mind took a trip back some 20 years to our high school baseball days.  Unfortunately, our body, which must deal with reality, did not make the trip.

The Georgia Peach in a 1910 photo Courtesy of the George Grantham Bain Collection (Library of Congress)
The Georgia Peach in a 1910 photo Courtesy of the George Grantham Bain Collection (Library of Congress)

What followed was a series of misguided exertions and poorly judged balls that passed for softball only by virtue of our dress and physical location.  While we avoided striking out, the results were far from optimal.  With every successive exertion, our already limited range in the position made famous by Ty Cobb, Mickey Mantle, and Willie Mays, became even more limited while the range perceived by our 17 year old mind grew to that exercised by the Georgia Peach himself.

Towards the end, we found ourselves playing just a shade off the infield and found ourselves in a number awkward instances where we were unnecessarily obligating ourselves to replicate Mays’ famous Catch with quite different results.

However, today is another day and brings another double header with it.  How will it turn out?  Fortunately, our body is only beginning to seize up and we should avoid the full physical consequences of last nights folly until at least tomorrow.

The M1 money supply is racing upwards once again after a dramatic drop over the past two weeks.  Equities, Fixed Income, and Gold are beginning to exhale, which means an inordinate amount of dough is set to run through a supermarket near you.

To make matters worse, or better, depending upon your preference for more Quantitative Easing on the part of the FED, the BLS (sans L) Unemployment rate ticked up to 7.6%, virtually ensuring that the program will remain in place.  Despite recent speculation of a taper, QE is the only thing standing between the big banks and insolvency.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for June 11, 2013

Copper Price per Lb: $3.19
Oil Price per Barrel:  $95.25
Corn Price per Bushel:  $6.59
10 Yr US Treasury Bond:  2.19%
Mt Gox Bitcoin price in US:  $106.99
FED Target Rate:  0.11%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,378 THE GOLD RUSH IS ON HOLD FOR THE SUMMER!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  -0.4%
Dow Jones Industrial Average:  15,171
M1 Monetary Base:  $2,585,400,000,000
M2 Monetary Base:  $10,489,300,000,000

 

U.S. Naval Update Map: June 6, 2013 | Stratfor

The private intelligence firm Stratfor publishes a weekly report on the positioning of US Naval assets using non-classified, open source information available to the public.  While this week’s report does not appear to contain any surprises, they can provide valuable insight into the movements of the primary means by which the United States projects its military power across the globe.

The complete report and graphic are republished here with permission of Stratfor:

U.S. Naval Update Map: June 6, 2013

U.S. Naval Update Map: June 6, 2013
U.S. Naval Update Map: June 6, 2013 is republished with permission of Stratfor

The Naval Update Map shows the approximate current locations of U.S. Carrier Strike Groups and Amphibious Ready Groups, based on available open-source information. No classified or operationally sensitive information is included in this weekly update. CSGs and ARGs are the keys to U.S. dominance of the world’s oceans. A CSG is centered on an aircraft carrier, which projects U.S. naval and air power and supports a Carrier Air Wing, or CVW. The CSG includes significant offensive strike capability. An ARG is centered on three amphibious warfare ships, with a Marine Expeditionary Unit embarked. An MEU is built around a heavily reinforced and mobile battalion of Marines.

Carrier Strike Groups

  • The USS Dwight D. Eisenhower CSG with CVW 7 embarked is conducting missions supporting Operation Enduring Freedom, maritime security operations and theater security cooperation efforts in the U.S. 5th Fleet AOR.
  • The USS Nimitz CSG with CVW 11 embarked is conducting maritime security operations and theater security cooperation efforts in the U.S. 7th Fleet AOR.
  • The USS Carl Vinson is underway in the Pacific Ocean for routine training.
  • The USS Harry S. Truman CSG with CVW 3 embarked is conducting a sustainment exercise in the Atlantic Ocean in preparation for an upcoming deployment.

Amphibious Ready Groups/Marine Expeditionary Units

  • The USS Kearsarge ARG with the 26th MEU embarked is underway in the U.S. 5th Fleet AOR supporting maritime security operations and conducting theater security cooperation efforts.
  • The USS Wasp is underway in the Atlantic Ocean for routine training.

U.S. Naval Update Map: June 6, 2013 is republished with permission of Stratfor

You can follow Stratfor on Twitter or Facebook at the following links:

Twitter: @stratfor on Twitter

Facebook: Stratfor on Facebook

The Land Needs Rest

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

The following is an excerpt from our upcoming ebook release, “To Build up the Land, Thoughts on Mankind’s uneasy intercourse with Nature,” due to hit digital shelves late this week.  Enjoy!

To Build up the Land
To Build up the Land

The Land Needs Rest

There is indeed a perfect balance between the time for building up the land and that for allowing the land to rest.  It is commonly known as the Sabbath, it is a pattern of time that has literally been encoded into the creation itself.

The Sabbath is best known, at least in the United States, as part of Jewish religious observances.  The base of the observance is taken from two passages in the Torah:

2 On the seventh day God finished his work which he had done; and he rested on the seventh day from all his work which he had done. 3 God blessed the seventh day, and made it holy, because he rested in it from all his work of creation which he had done.

Genesis 2:2-3

12 “Observe the Sabbath day, to keep it holy, as Yahweh your God commanded you. 13 You shall labor six days, and do all your work; 14 but the seventh day is a Sabbath to Yahweh your God, in which you shall not do any work, you, nor your son, nor your daughter, nor your male servant, nor your female servant, nor your ox, nor your donkey, nor any of your livestock, nor your stranger who is within your gates; that your male servant and your female servant may rest as well as you. 15 You shall remember that you were a servant in the land of Egypt, and Yahweh your God brought you out of there by a mighty hand and by an outstretched arm. Therefore Yahweh your God commanded you to keep the Sabbath day.

Deuteronomy 5:12-15

The seven day weekly cycle that is anchored by the Sabbath is so entrenched in the creation that every attempt by man to supersede it, the most notable recent attempts being the French Republican Calendar and the Soviet Calendar.  Both were suspended after experiments that lasted roughly twelve years.

While the texts in the Torah, which form part of the Christian Bible, offer clear guidance of the divine to observe not only a seven day week, but a seven day week consisting of six days of work and one day of rest, religious tradition alone cannot account for the origins of the seven day cycle.

Cultures throughout the world have operated on weekly structures consisting of anywhere between three and thirteen days, notable ancient examples are the eight day Roman market calendar and the 13 day Mayan week.  Indeed, it appears that even the Jewish Sabbath was not observed by the Jews until they were exiled to Babylonian captivity between 597 and 587 BCE.

Adding to the mystery of the seven day week is that it is they only time construct known to mankind that does not conform to any astrological, lunar, or solar cycle, as days, months, and years are designed to do.

The reason that the seven day weekly cycle, ordained in the Torah, has emerged as the dominant time cycle that is now observed by every large society on the planet, is that seven day cycles are deeply ingrained in both plant and animal life at a cellular level.

Dr. Franz Halberg at the University of Minnesota, is the foremost authority on natural rhythms which is the subject matter of an area of science known as chronobiology.  Halberg’s research has shown that all rhythmic functions of the human body are likely to possess an innate seven day frequency.

The divine call for a day of rest every seventh day appears to fit perfectly with an unseen but deeply felt rhythm common to the interplay between all living things down to the most basic cellular level.

While an understanding of the seven day weekly cycle and the need to collectively rest on the seventh day is somewhat easy to grasp based on personal experience for most, what is harder to grasp but equally and perhaps more important with regards to building up the land is the need for the land to rest every seventh year.

In other words, the seemingly arbitrary command to abstain from work on the seventh day not only applies to the cycle of days known as the week, but the need to rest on the seventh year of a cycle after six years of production.

Again, the basis for the resting of the Land on the seventh year by abstaining from all productive agricultural activity can be traced to the Torah:

10 “For six years you shall sow your land, and shall gather in its increase, 11 but the seventh year you shall let it rest and lie fallow, that the poor of your people may eat; and what they leave the animal of the field shall eat. In the same way, you shall deal with your vineyard and with your olive grove.

Exodus 23:10-11

2 “Speak to the children of Israel, and tell them, ‘When you come into the land which I give you, then the land shall keep a Sabbath to Yahweh. 3 You shall sow your field six years, and you shall prune your vineyard six years, and gather in its fruits; 4 but in the seventh year there shall be a Sabbath of solemn rest for the land, a Sabbath to Yahweh. You shall not sow your field or prune your vineyard. 5 What grows of itself in your harvest you shall not reap, and you shall not gather the grapes of your undressed vine. It shall be a year of solemn rest for the land. 6 The Sabbath of the land shall be for food for you; for yourself, for your servant, for your maid, for your hired servant, and for your stranger, who lives as a foreigner with you. 7 For your livestock also, and for the animals that are in your land, shall all its increase be for food.

Leviticus 25:2-7

The command to rest the land every seventh year is often embodied in a practice that is known as crop rotation.  Crop rotation is a method of agriculture in which a series of different types of crops are planted in the same area, usually a field, in sequential growing seasons.

The planting of different seeds on the same field each season helps the land to achieve balance because different types of plants require from and provide to the land different types of nutrients, allowing the land to replenish itself.  An additional benefit to crop rotation can be found with relation to pests.  By constantly changing the types of crops grown in a certain area, the farmer can avoid the possibility that a pest become entrenched in an area, as simply changing crops can deprive certain pests of the means necessary to establish viable habitats over long periods of time for their colonies.

Many crop rotation plans call for a field to lie fallow for a season.  While the benefits of allowing the land to rest are numerous, the most common benefit of this practice is that it allows the water table underneath the Land to reestablish itself in anticipation of providing crops for the next six years.  Given that water tables are not field specific, but cover large areas encompassing many fields, it is important that the fallow years for fields be coordinated to coincide with each other for the benefits of the Sabbath year to accrue to the Land and, consequently, to the land’s inhabitants.

Stay tuned for the ebook release and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

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
FED Target Rate:  0.08%  ON AUTOPILOT, THE FED IS DEAD!
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

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

Email: davidminteconomics@gmail.com

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
FED Target Rate:  0.08%  ON AUTOPILOT, THE FED IS DEAD!
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