The US Federal Reserve is committed to continuing to produce M1 for purpose of funding $1Trilliton+ deficits, and there’s no reason to expect the American output to keep up with the rate of M1 production. Period. End of story.

I’m going to send you two links.

These two links explain and verify what I’ve been trying to say for a couple of years at least. The explosion of M1 (money, or dollars, in the technical sense) without a corresponding increase in the production of actual American products and services means…

More dollars for the same or similar quantities of products and services makes dollars less useful.

This means inflationary tendencies…a bubble always looking for a place to occur.

My only question until today has been, “How does the bubble hide?” and now I know.

It hides in plain sight in the unregulated institutions which are as large as (and larger than some) national economies. The specific people involved are all named and shamed, and have paid their after-market dues. Now it’s time to make more M1.

First – internet equities, then real estate, what’s next? There is no if, only what and when.

One link I’m sending you contains direct quotes from the leaders of the organizations that are very literally now taking financial responsibility (years later, and at a much reduced cost, after society mops up the big expenses…Jamie Dimon, the guy who just took a 50MM+ paycut for 2012 alone because of his judgment is actually being quoted on risk management at Davos?) for the fracas that’s left me and both of my fully employed brothers-in-law homeless.

Mind you, all 3 of us are good men, 2 veterans, 2 cops and so forth, all with children and wives and all pay the bills and put family first.

The US Federal Reserve is committed to continuing to produce M1 for purpose of funding $1Trilliton+ deficits, and there’s no reason to expect the American output to keep up with the rate of M1 production. Period. End of story.

What to do? I don’t know. My plan is to move my family to place where growth rates can accommodate 5 brilliant kids and a wife who’s ready to be a serious entrepreneur. But I can’t help thinking that remaining captive to the American dollar is not a good long-term decision for my family.

Alex

Feel free to share, and to quote me.

Dimon Backs Shadow Banking as Necessary Service Providers
http://www.bloomberg.com/news/2013-01-23/dimon-backs-shadow-banking-as-necessary-service-providers.html

Shared via News360

http://en.wikipedia.org/wiki/Shadow_banking_system

and one last one…

http://www.google.com/search?q=jamie+dimon+pay+cut&oq=jamie+dimon+pay+cut&sourceid=chrome-mobile&ie=UTF-8

I just shared this with my father and my mentor. Do what you will with it.