Market Curiosity: Exploring Markets And Systems

April 12, 2011

FRN monetary base and silver both up about 186% since fed started overt printing (corrected April 26)

Filed under: Just Watching — Tags: , — Jeff Fitzmyers @ 8:50 am

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).

Offhand, I expect the price of silver to begin overtaking the growth of BASENS in the next few months.

+ Update: Monetary base +180% and silver +170%.
+ St. Louis Adjusted Monetary Base (BASENS)


  1. i’ve been following your WP blog for sometime, great DD. where do you see silver topping out? there’s been HUGE interest on SLV. do you still cont. see SLV rally?

    Comment by enron89 — April 12, 2011 @ 9:56 am

  2. Thanks! I don’t see silver topping out until silver, gold and copper start to be used as physically as currencies. And then they would top out based on the stronger fait currencies, but be worth infinity in the weaker fait currencies which will denote the end of those currencies. I’m guessing that might start when silver gets to the range of 600 to 7,000 frn’s/oz probably before the end of 2012.

    Yes there is a large interest in SLV. But it seems like that is the first base of hard currency newbies. As they slowly learn more, they sell SLV and get PSLV and physical instead.

    I’m guessing silver might not make new highs for a few more days, but it is relatively strong right now. So far, it has not even corrected to it’s 10 day EMA during this week’s dip. Gold did, crude and stocks are near their 34 day EMA’s. I’m expecting $5 up days in silver someday.

    Near as I can tell, as long as the fed keeps printing, silver will keep rising. AND it appears they have to keep printing faster and faster.

    Comment by Jeff — April 12, 2011 @ 10:56 am

  3. Thanks for the reply, Im curious to see how the DXY will play out with QE2 ending in june. Could that be the catalyst that could correct the silver/gold market?

    Comment by enron89 — April 12, 2011 @ 11:19 am

  4. If it is true that “things” (debt, problems, lies) have gotten past he knee of the exponential curve, no matter what it’s called, the fed probably has to keep printing rather consistently or the music stops within a week or so (?). And if so, I would be inclined to think most corrections last shorter and shorter intervals of time. This market has been sleeping for 30 years…

    Comment by Jeff — April 12, 2011 @ 11:39 am

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