Now that we've all digested and priced in unlimited easing from the Fed it's time to start following the money. On the surface it appears Washington has opened the monetary flood gates, but when you look behind the curtain you see precisely the opposite is happening. The growth rate of the money supply is contracting, not expanding. And the velocity of money continues to collapse.
Watch what they do, not what they say.
Bernanke's announcements are meant to give the false impression the government cares and is trying to help fix the collapse they and the bankers created. FRED's charts are there to inform those who want to understand what's really happening that the flood gates are being closed, not opened.
All this talk of a war on the US Dollar is nonsense. Yes, it has lost 95% of its value since the Fed was created in 1913. But the downtrend of the buck reversed during the financial crisis when the DXY bottomed at the 72 level. If people want to discuss war and the dollar in the same sentence, they might want to talk about the wars that are fought to defend the petrodollar or the dollars that are needed by the Pentagon to buy diesel fuel from BP for our tanks and Humvees
The TBTF banks in the US and Europe are as broke now as they ever were. In fact based on their charts (available to subscribers) they're in worse shape now than they were four years ago. Along with more violent attacks and demonstrations by enraged Muslims another banking crisis will be hitting the headlines soon. And just like in 2008 money will be decreasing its velocity, coming out of circulation and seeking safe haven in the US Dollar.
For those who have eyes to see...