The key point is this exponential expansion of the monetary base is NOT QE2. QE 2 started the first week of November and would have shown up on this chart in late 2010. No, the chart of the Adjusted Monetary Base shows the Fed panicking and pouring cash into the system starting in February, and continuing now. The last time the Monetary Base went vertical was during Sept/Oct 2008- during the height of the panic. It held steady and actually declined throughout 2010, before launching vertical in the last month. The Fed must know something that most are not yet aware of.
From JSMineset
This is a chart of the US monetary base. In simple terms, it charts how much money the Fed has pumped into the system (at least that it admits). So it’s a kind of visual of the Fed hitting the PANIC button: when the monetary base explodes higher, the Fed is FREAKING out.
You’ll note that during the Financial Crisis the Fed didn’t do much until the autumn of 2008 when it pumped nearly $1 trillion into the system. Think about that, the Fed didn’t go nuts pumping money until the stuff REALLY hit the fan.
You’ll also note that there’s only one other time when the monetary base went absolutely vertical: TODAY.
Indeed, the Fed has pumped nearly $500 billion into the system since the start of 2011. Don’t even try to tell me this is QE 2. If it was then the monetary base should have spiked in late 2010, NOT in 2011.
No, this is the Fed FREAKING OUT about the financial system again. And it’s a freak out on par with 2008.
So if you think that all is well "behind the scenes" you’re in for a rude surprise. Something BIG is going down and it’s NOT good.
And rest assured, by the time the mainstream media announces what it is, it will already be in full swing.
Mark W. Kellstrom, CFA
Strategic Energy Research and Capital, LLC
Kellstrom@Strategicenergyresearch.com
