Reply #15: Thank you for that! It makes me wander off topic; [View All]

[upi402]

From the M2 chart on your site I imagine inflation is looming. It looks like M2 (supply) leads CPI historically. If that's so, it also seems that a weak dollar, relative to other major currencies, would increase production in the USA as our goods become cheaper.

So the fed (OMBC?) has to raise the prime (overnight) even more if production increases here. But does the bottom drop out as the now-hidden money supply and presumably increased cash input causes US$ devaluation and US$ flight in the forex -all as inflation increases?

It's confusing to me. Especially when I try to understand why forex traders and big players would hold US$ if the debt is actually so large now, on top of it all. Receipts HAVE to increase don't they, or the bottom will fall out. No?

My friend keeps returning to the 30% lower tax rate under Bush. He doesn't want any part of receipts increases.