Can Financial Charts Predict The Future? Hava looksee..
I grabbed these from GoldSilver.com, for more info visit his web.
People talk about the economy and ask, “is the recession over?” well…what if it was? What is tomorrow, everyone declared, “it’s over, what were we so worried about?” If that occurred would it all go right back to the ‘way it was’? NO CHANCE.
These charts show us what to be worried about, look at previous years, previous recessions and hard times like the late 70′s. Notice the size of the chart changes over those years. You can’t even see the change. 1974-1975 16-18% interest rates fighting off inflation….look at the chart changes during the 1970-80. Minimal, those were the worst years on record I can remember. (very bad stuff)
You can’t even see that move on the chart compared to what has just taken place. These are a bit old based on dates around the end of last year, but you get the picture.
From GoldSilver.com here is what Michael Maloney had to say: The Greatest Wealth Transfer in the History of Mankind Starts Now!
Panic Meter (2006 – November, 2008)
I then showed a chart of the monetary base (all paper dollars and coinage in existence). It took 200-years for the monetary base to go from $0 to $800 billion, but in just the past 3-months it has grown from around $800 billion to $1.5 trillion, and by the time you read this it will probably be surpassing $1.6 trillion. That’s double the number of paper dollars in existence since last summer!
Base Money (1919 – November, 2008)
The next chart is “Cash in Circulation”. So far only a small amount of all that extra currency shown in the above chart has leaked out of the banking system and into circulation. But you can bet your assets… IT WILL. When it does, it means that prices must rise to soak up all that extra currency, like a sponge soaking up water. This is bad news for someone holding dollars, but cause for celebration for a precious metals investor.
Bank Borrowings from Federal Reserve (1919-2007)
Here is the same chart, but I’ve now taken it out through November of 2008. You can’t even see the $8 billion S&L Crisis peak anymore! In fact, the banks are approaching $800 billion in borrowings. This means that the banks perceive this crisis as being 100 times larger than the S&L crisis.
Bank Borrowings from Federal Reserve (1919-November, 2008)
This next chart is Reserve Bank Credit. It is the total amount the Federal Reserve has loaned out of its bottomless checkbook. This chart includes all the rest of the bailouts (at least through November 2008). This chart also rises to roughly $800 billion by the end of 2007, but by November 2008, it has risen to $2.2 trillion. As Brent Harmes would say “It’s climbing skyward like a homesick angel.”

Reserve Bank Credit
Last, we have a chart of “Excess Bank Reserves”. These are reserves in excess of the amount that the Federal Reserve requires the banks to have. It looks almost identical to the chart of Bank Borrowings, except for two small features; there is a tiny blip in 2001 and a small bump around 1941. Could it be that the banks perceive this crisis to be 50 times larger than 911 or even World War II?
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