An update of the daily treasury statement charts:

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As a contrarian investor, I abhor mechanistic ways of thinking. So, in defiance of the formula that says ‘money printing leads to hyperinflation’, I ask: what idea killed the paper mark of the Weimar Republic? And does it threaten the dollar today?

 

The idea that killed the mark was self-sustaining, spiraling and vicious. In short, it was this: any fall in the external value of the mark was deemed to necessitate the unconditional discounting of treasury bills at the Reichsbank. Plainly put, it was; ‘print paper marks when the paper mark falls in value’. Every bout of money printing brought a decline in the mark’s value against the dollar, which brought about fresh rounds of money printing, and so on. The period of inflation in the Weimar Republic was doomed to continue insofar as this idea held its legitimacy.

 

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An update of the daily treasury statement charts:

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Here are the updated charts of real interbank rates in developed markets:

 

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Here, I present and analyze a chart of the ‘real’ fed funds rate since 1915. [Meaning, the fed funds rate minus the year-on-year change in the consumer price index.]

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Since the March 2009 low in the major stock indices, there has been waxing and waning interest in the reportedly low volume on up-moves. Is this just ‘another broken indicator’ or something more?

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Here are the updated google insights charts for the inflation/deflation debate:

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