[charts courtesy Weiss Research]
The charts show the massive increase in the US monetary base. Chairman 'Bubbles' Bernanke has created the most rapid increase of monetary expansion in US history. Milton Friedman would be proud. Before the Lehman Bros. collapse in '08 it took 14 years for the Federal Reserve to double the dollar supply. In less than four months Bernanke's Fed doubled it again. The Obama administration has made a policy decision to stop deflation at the cost of a stable dollar. That is why monetary and fiscal stimulus now amounts to an estimated one third of the GDP, or ten times more than the average post-war recession. Translation: bad for Joe Sixpac, but good for Gold Sacs.