Market Curiosity: Exploring Markets And Systems

March 24, 2011

Update: Monetary base +180% and silver +170%. (corrected April 26)

Filed under: Just Watching — Tags: , , — Jeff Fitzmyers @ 10:32 pm

Edit April 26: The Ticker Guy pointed out I did not know what I was talking about. I assumed I was talking about coins, cash and deposit accounts, but:

St. Louis Adjusted Monetary Base (BASENS) The sum of currency in circulation outside Federal Reserve Banks and the U.S. Treasury, deposits of depository financial institutions at Federal Reserve Banks, and an adjustment for the effects of changes in statutory reserve requirements on the quantity of base money held by depositories. This series is a spliced chain index; see Anderson and Rasche (1996a,b, 2001, 2003).

For the past 2 months, BASENS averaged +4% every 2 weeks and silver averaged +8% every 2 weeks.

Say it’s not a coincidence and silver keep rising on average 8% every 2 weeks …
In 1 month silver could be about 44 frn’s/oz.
In 2 months silver could be about 51 frn’s/oz.
In 3 months silver could be about 60 frn’s/oz.
In 6 months silver could be about 94 frn’s/oz.

Plus, the chart of both lines seems to be smooth and smoothly correlated now — meaning that possibly the system has become locked together — meaning that possibly the music is about to stop. When there is no more room for the normal give and take, lookout, pressures might be high all around and something might snap.

In other words, the fed (not federal, nor reserve, just debt) now HAS to keep printing, AND can’t stop, and silver reflects this.

As Adjusted Monetary Base Rises By Half A Trillion In 2011, Treasury Runs Out Of Debt Ceiling Delay Measures

References
+ Monetary base +170% and silver +160%. Coincidence?
+ Did a 140% rise in the Monetary Base lead to a 150% rise in silver?
+ St. Louis Adjusted Monetary Base (BASENS)

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