Whoa! - The Money Supply Explodes +120%!

The money supply has gone parabolic!

In the past year the Federal Reserve has increased the money supply by a whopping +120%. That's never happened before. Recall that in the 1970s the Fed increased the money supply +13% and inflation soared into the double digits.

Gee, I wonder what inflation is going to be like after the money supply more than doubles? 

Now you know one of the primary reasons why:

1. Savvy investors and central banks around the world are exchanging this flood of depreciating dollars for gold, commodities and other hard assets.
   
   
2. India just bought 200 tons of gold and is thinking about buying 200 more.
   
   
3. Gold bullion posted another new high today, closing above $1,200 for the first time!

Chart courtesy of www.StockCharts.com