"Emancipate yourself from mental slavery, none but ourselves can free our mind.” - Bob Marley

Monday, April 18, 2011

It's ALREADY in Free Fall

This image is of "Indoor Skydiving":


The lady shown is being pulled to the earth such that she would eventually achieve a "terminal velocity" of 120 mph downward.

But it doesn't happen in this case because a giant fan beneath her is producing a updraft of 120 mph, which balances the forces, so she gets to "freefall" in one place.  If the wind stops, she drops like a rock.

So what are we to make of this graph of the Monetary Base as manipulated by the Fed (courtesy of ZeroHedge)?



The first area in red is the "updraft" needed in Autumn of 2008 to prevent everything from falling down.

So what is the second area in red?  It is another updraft, in place NOW.  We are ALREADY in free-fall.
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The Fed is feeding the economy pure meth - and it is still standing still or worse.  When the meth loses its effect, or runs out, there will be pure hell to pay.
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1 comment:

merin said...
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About Me

I'm a 57 year old geek. I voted Democratic for 20 years, because I disliked the Republicans more. But now, nobody really speaks for me. I'm for Guns, for more correct government regulation of the financial world, against illegal immigration and amnesty. (in 2008 I ended up voting Republican - too many questions about Obama, and voting against anybody who voted for TARP 1.) In 2010 I voted a stright republican ticket because the Democrats have completely lost their minds.