The Federal Reserve System Is Inflating at More Than 100% Per Annum.

Gary North

Nov. 11, 2009

Here is the latest chart from the St. Louis Federal Reserve on the adjusted monetary base. We can see what has happened since mid-August. The rate of increase is accelerating.

Secretary of the Treasury Geithner told an audience in Japan on November 11 that a strong dollar is important for the U.S. economy.

Bloomberg reports:

"I believe deeply that it's very important to the United States, to the economic health of the United States, that we maintain a strong dollar," Geithner told reporters in Tokyo today. . . .

"Because of the important role the dollar plays in the international financial system, we bear a special responsibility for trying to make sure that we are implementing policies in the United States that will sustain confidence" for investors around the world, he said.

As Nixon's Attorney General John Mitchell told the media several years before he was sent to prison, "Watch what we do, not what we say."

Central bankers have been watching what the Federal Reserve is doing. That is why the dollar has fallen.