These charts rarely get shown by the mainstream media because they illustrate the devastating effects of inflation and how the U.S. economic recovery is phony. We believe these are the most important charts in the world for you to review and fully understand.
The Federal Reserve has held the Federal Funds Rate at a record low of 0-0.25% for almost 3 years. This is the interest rate set by The Fed that banks charge each other for loans:
The Bank Prime Loan Rate has been at a record low of 3.25% for almost 3 years. This is the interest rate that commercial banks charge their most creditworthy borrowers, such as large corporations:
The Federal Reserve and Treasury Total Money Supply has exploded by hyperinflationary levels during the recent years:
The Dow Jones has rallied 80% from its low in March of 2009. However, adjusted for real inflation, the Dow Jones is about equal to where it was in 1963. Stock market gains have been due to nothing but inflation:
Despite gold recently reaching a new all time high of $1,923.70 per ounce, gold's high in 1980 of $850 per ounce adjusted for the CPI index was over $2,500 per ounce in today's dollars. Once you account for how the CPI understates inflation, gold's high in 1980 was over $5,000 per ounce in today's dollars:
Gold rose from $35 to $850 per ounce during the 1970s despite rising interest rates. Even if the Federal Reserve begins raising the Federal Funds Rate from its record low of 0-0.25%, interest rates will remain negative in real terms until they reach a level that is higher than the real rate of inflation:
The Dow Jones divided by the price of gold. After the inflationary crisis of the 1970s, the Dow/Gold ratio bottomed at 1:
Silver's high in 1980 of $49.45 per ounce adjusted for the CPI index equals $130 per ounce in today's dollars:
Gold divided by the price of silver. The gold/silver ratio is currently 40 but during periods of massive inflation the ratio usually declines to a level of 16:
Oil is currently trading about 34% lower than its all time nominal high set in July of 2008:
Copper is currently trading about 43% lower than its all time inflation adjusted high set in the 1970s:
Corn is currently trading about 64% lower than its all time inflation adjusted high set in the 1970s:
Wheat is currently trading about 73% lower than its all time inflation adjusted high set in the 1970s:
Sugar is currently trading about 76% lower than its all time inflation adjusted high set in the 1970s:
Cattle is currently trading about 52% lower than its all time inflation adjusted high set in the 1970s:
Cotton is currently trading about 78% lower than its all time inflation adjusted high set in the 1970s:
Coffee is currently trading about 79% lower than its all time inflation adjusted high set in the 1970s:
Cocoa is currently trading about 85% lower than its all time inflation adjusted high set in the 1970s:
This chart shows combined U.S. federal, state, and local debt, which is now about $17 trillion:
This chart illustrates both the U.S. monthly budget deficit and U.S. monthly trade deficit:
If you account for the real rate of unemployment and the real rate of inflation, pain & misery in the U.S. is now approaching Great Depression levels:
M1 consists of currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; traveler's checks of nonbank issuers; demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and other checkable deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union share draft accounts, and demand deposits at thrift institutions:
The St. Louis Adjusted Monetary Base is the total amount of a currency that is either circulated in the hands of the public or in the commercial bank deposits held in the central bank's reserves:
The M1 multiplier is the ratio of M1 to the adjusted money monetary base:
M2 consists of M1 plus savings deposits (including money market deposit accounts); small-denomination time deposits (time deposits in amounts of less than $100,000), less individual retirement account (IRA) and Keogh balances at depository institutions; and balances in retail money market mutual funds, less IRA and Keogh balances at money market mutual funds:
M3 consists of M2 plus institutional money market mutual funds, time deposits in amounts of $100,000 or more, repurchase agreement liabilities of depository institutions (in denominations of $100,000 or more) on U.S. government and federal agency securities, and Eurodollars:
This chart shows M3 combined with total credit and government debt:
This chart shows how Real Estate is not a good investment over the long-term and how the median price of a U.S. home is now lower than it was in 1900 adjusted for real inflation:
Housing starts is the number of privately owned housing units on which construction has been started:
This chart shows the number of new housing units authorized by building permits:
This chart shows new single family houses sold:
The total value of Real Estate loans at all commercial banks:
The Federal Reserve is trying to prop up the housing market with artificially low interest rates. The interest rate for a 30-year mortgage is now 4.09%, having recently bounced from an all time low:
Growth in U.S. government monthly spending (first chart) has far outpaced growth in monthly tax receipts (second chart):
Adjusted for real inflation, the average American is now worth less than 30 years ago:
The average American has been earning less per hour (adjusted for real inflation) and seeing a decline in their standard of living since the early 1970s after we left the gold standard:
The median American family was earning over $100,000 per year in today's dollars during the 1970s:
The length of time Americans are staying unemployed has skyrocketed during recent years, indicating there is no economic recovery:
Americans with jobs are working substantially less hours than they did decades ago:
The Federal Reserve has raised reserve requirements (first chart) but at no where near the same rate as the rising total reserves at banks (second chart). Banks now have $1.545 trillion in excess reserves (third chart) that they could soon be forced to lend in order to seek higher returns as price inflation breaks out:
U.S. consumers only expect 3.2% price inflation over the next 12 months:
Consumer sentiment bounced from its lows, but is now starting to decline again:
Declining inventories will help setup the perfect storm for massive price inflation:
These charts illustrate how the U.S. is importing a lot more than it exports to China, Japan, Germany, Mexico and Canada. This cannot be sustained forever:
This chart shows the Wholesale Price Index in Weimar Germany during hyperinflation. While prices shot up 1 trillion times higher in terms of Marks, prices remained stable in terms of gold:
The price increases for both silver and gold in terms of Marks during hyperinflation in Weimar Germany:
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