Mwana Africa - A New beginning

WS, if you haven't read this yet i suggest you do so now. Interesting stuff. If there is any truth to it we could be in for a breathtaking year:


Regarding the rabid recent increase in the Federal Reserve's creation of money out of thin air, here is what Robert said in his December 22nd issue of his "Financial Forecast & Analysis" weekend publication.

"So what about M-3 the past week? The latest figures show that on a seasonally adjusted basis, M-3 rose 27.3 billion last week, a 14.0 percent annualized clip, and is up $76 billion over the past month, a 9.8 percent growth rate. But those are the massaged numbers. For the raw figures, fasten your seat belt. Are you ready? M-3 was increased $58.7 billion last week (that does not include the huge Repo infusions noted above), a 30.0 percent annualized rate of growth. For the past two week, the Fed added $93.5 billion to the money supply, a 24.0 percent annual clip. Over the past 6 weeks it is up $192.9 billion, a 16.7 percent Banana Republic hyper-inflationary pace. This is nuts, folks - unless there is an incredible risk out there we are not being told about. That is a lot of money for the Plunge Protection Team's arsenal to buy markets - stocks, bonds, currencies, whatever. This level of irresponsible money supply growth makes shorting markets hazardous, yet at the same time says markets are at huge risk of declining. Maybe M-3 growth doesn't stop the decline this time. Should be a fascinating storm in 2006.

"The recent rise in Gold catalogued 74 points over about a month, a 16 percent rally from precisely the day the Fed announced it would hide M-3 from taxpayers and citizens of this great nation. That is no coincidence. Gold sees hyperinflation, monetization of debt, and intervention into free markets. Gold is telling us it expects Ben Bernanke to be an inflationist."

Richard Russel's comment on Dr. McHugh's Commentary - "I found the paragraphs above to be shocking. And they may be telling us why gold and silver are refusing to correct. Yep, we may be moving into the "total insanity" phase of Fed-created liquidity. What in God's name is the Fed so afraid of?"