by Dave Kranzler, Investment Research Dynamics:
The adjusted monetary base is all currency either in circulation with the public or held in bank reserve accounts at the Fed. This chart reflects all of the money the Fed has printed since QE started. As we know, most of this money has ended up in the Fed’s “Excess Reserve” accounts of the Too Big Too Fail banks. This is more than just “noise,” to borrow Yellen’s term. There is a very specific reason for this and my co-producer and I are working on a multi-part video series explaining what we are pretty certain is going on and why most of the money printed up by the Fed – and most of the money the Fed continues to print in a parabolic fashion (see the graph above) – remains on the big bank balance sheets.
Hint: there is a massive derivatives melt-down brewing, the likes of which will probably trigger the collapse of the dollar.
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