Exploding implosion of dollars

Exploding implosion of dollars

During 1970 there was about $50 billion in circulation. It took only 37 years to create an additional $700 billion dollars. Roughly between 2005 to 2007 another $50 billion was added to the money supply. As of January 2007 around $750 billion dollars was floating around the globe in one form or the other.

At this rate, a day is coming when the Congress and Federal Reserve System (FRS) might pump $50 billion dollars a day into the economy. There is a powerful reason why the FRS stopped publishing the M3 component of the money supply. It may have something to do with institutional money market mutual funds and the derivative market. When M2 hits ten trillion dollars the FRS might stop making this information public.

Growth of the American dollars in circulation has exploded at an exponential rate. The combination of national debt, deficit spending, stimulus and bailouts are contributing factors. What finite debt number which is so large, payoff becomes useless and impossible? At zero percent interest, safe haven treasuries may be savaged by the inflation rate. Printing more promissory notes deflates the value of dollars already in flow.

Creating dollars via computer program that electronically adds zeros to exploding deficit spending is also inflationary. Taxpayers are caught between the two headed inflation deflation dollar. When the amount of dollars is greater then the total amount of foreign currency held by the rest of the globe, what will happen? How high will interest rates climb to ward off hyperinflation?

Has the taxpayer reached the point where the quantity of debt in global circulation can no longer sustain the purchasing power of U S dollars? What of the estimated $666 trillion derivative market which are ninety percent fraud, larceny, embezzlement and racketeering? How could there be an industry ten times GDP of all global economies trading on legitimate exchanges? The derivative industry epic center is the United States of America’s financial system.

What is the average yearly rate of change in the total U S dollar money supply? How many years will it take to double the current supply of U S dollars? What is the time line for the current national debt to double from to date? With a jobless recovery there is no way taxpayers can continue payment on the national debt.

Taxpayers may probably default on debt owed to recently bailout FRS. Something is broken in the US but it is not the income tax system.

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