Tag Archives: m3

Episode-434- The Basic Financial Education We Never Get in School

Posted on May 13, 2010 by Modern Survival| 6 Comments
Episode-434- The Basic Financial We Never Get in School [ 1:05:50 ] Play Now | Play in Popup | Download

By the time our children are in high school today they should be getting what I consider to be a basic financial education.  In fact our citizens in college today don’t get this education unless they specialize in economics or finance and even then it is slanted to the “Statist” or “Keynesian” model.

Join me today as we discuss the following…

  • What is money?
  • What is a backed currency?
  • What is a “fiat currency”?
  • Why does money exist?
  • What is M0, M1, M2 and M3?
  • What is inflation?
  • What is debt?
  • Can a currency also be a debt?
  • How are U.S. Dollars created?
  • What is fractional reserve?
  • How do banks create additional money?

Additional Resources for Today’s Show

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Episode-156- Recovery Equals Inflation

Posted on March 9, 2009 by Modern Survival| 6 Comments
Episode-156- Economic Recovery Equals Inflation [ 44:44 ] Play Now | Play in Popup | Download

Right now everyone is wondering when the economy is going to recover.  They are waiting for it as a tribesman awaits rains coming to the desert.  Oh won’t it be a glorious day when the Dow reverses course and begins a sustained climb, the banks open the mortgage food gates and “good Americans” do their patriotic duty and spend money?

Hold on, my problem with this is in reality this is the recovery!  The nation turned into a bunch of credit, debt and spending addicts.  What you see now is the nation in rehab!  300 million addicts coming off the spending spree and going through detox!

It won’t last!  The Federal Reserve and their drug cartel (banks, credit card companies and financing organizations) might not be willing to kill their clients with an overdose, yet they can’t allow them to go strait either.

Soon the peer pressure and dealer pressure will start up again.  Come on honey the Jones family just got a new car, the Smiths at work just got a new house and their are buyers for our house now.  Besides I just got a raise and we have saved up a lot of money.  Let’s enjoy life, you can’t take it with you!

The TV and Radio and the Dancing Girls at Weather.com will advertise “low mortgages that anyone can qualify for”.  The good times will return!  With them, inflation like we have never seen before.  When it happens don’t forget the pain of today, don’t go back to being an addict.  “Stay the course”, the one your grandparents set, value your money, save for a rainy day and buy what you need, not what you covet.

Today’s show discusses these concepts, explains the fallacy of a decline in the M3 Money Supply and will help you deal with a recovery that will actually be a relapse of the addiction and lead to a bigger crash then we just went through.

Resources for Today’s Show

Remember to comment, chime in and tell us your thoughts, this podcast is one man’s opinion, not a lecture or sermon.   Also please enter our listener appreciation contest and help spread the word about our show.

You also now can call in questions or comments for the host at 866-65-THINK, please read the suggestions for calling in before you do for the best chance of getting your comments on the air.

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Episode-12- What is the M3 Money Supply and What Does it Mean to You?

Posted on July 10, 2008 by Modern Survival| 3 Comments
What is the M3 Money Supply and What Does it Mean to You? [ 33:22 ] Play Now | Play in Popup | Download

So just what is the M3 Money Supply? It is the value of all U.S. Dollars in Circulation. The M Factors of US currency are broken down as follows,

  • M0: M0 (M-zero) is the most liquid measure of the money supply. It only includes cash or assets that could quickly be converted into currency. This measure is known as narrow money because it is the smallest measure of the money supply.
  • M1: M1 is M0 + checking accounts. This is used as a measurement for economists trying to quantify the amount of money in circulation.
  • M2: M2 is M1 + small time deposits (less than $100,000), savings deposits, and non-institutional money-market funds.
  • M3: M3 is M2 + all large scale deposits (over $100,000), institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets. The broadest measure of money; it is used by economists to estimate the entire supply of money within an economy.

Now it just so happens that the Federal Reserve stopped publishing the U.S. M3 numbers back in 2006, to, “save money and because the M3 number doesn’t really tell you anything that the M2 number doesn’t.”

I am sorry but this is a huge cop out.

  1. You can bet that the Fed knows the M3 number, publishing it is releasing a number, not much can be saved by not publishing it, the work to calculate the M3 Supply is still being done.
  2. Large scale deposits (over $100,000) and institutional money-market funds are exactly where money pumped into the system by the Federal Reserve actually go! Not publishing this number has freed the Fed to pump in money at will and keep the average person ignorant to what is going on.

Listen to this edition of The Survival Podcast and learn

  1. How pumping in money to our economy is like splitting a stock with out giving new shares to those who own it. Effectively cutting the value of the dollar by 32% in the last 27 months that M3 has not been published.
  2. How the consumer price index has been replaced with “core inflation” so that our current inflation rates ignore two of your biggest expenses, ENERGY and FOOD!
  3. How the Fed’s Solution to loan and print even more money is sending us on a road to disaster most people can’t even fathom.
  4. Why the cost of everything that people need to survive and work in the U.S. is going up but we are being told that inflation is “flat”.

In short the rate of inflation is ignoring the decline of the dollar, the increase in the cost of food and the increase in the cost of gas and other energy products to falsely and temporally prop up the declining U.S. and Global Economies.

Here are some of the resources I used for data for this podcast

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