Babylon Today | home
Charts of M3 and U.S. Debt to 2079
Bear in mind that this Microsoft Excel generated chart (anchor) uses a 46 year trend, to project forward just an additional 75 years. The digits are correct. Each bar on this chart represents the total M3 at that year end. The total M3 money stock projected to 2079 is almost 4,000 trillion dollars. Or 4 million billion if you prefer. That means that if the candy bar that cost 5 cents in 1960 costs 55 cents today, you will have to pony up $200 to buy the same candy bar in 2079! And they call Greenspan the Maestro?! Click here for an Excel projection of M3 to 2024 based on the last 10 years.
Perhaps we can monotize our debt after all! Projected U.S. debt to 2079 is a paultry 1.4 million billion, or 1,400 trillion shown in the chart (anchor) above! However this TOTAL U.S. debt projection does not include the increase in spending resulting from the prescription drug benefit shown here.
The above figures are small potatoes when you consider that 75 years from now, A SINGLE YEAR'S SPENDING on the prescription drug benefit is projected to cost 5.6 THOUSAND TRILLION 2079 dollars. Click here for a chart of a 75 year projection of the cost of the Drug Benefit (I moved it to the "Medicare Prescription Drug Benefit" page).
In just the month of August '05 M3 increased by 99 billion dollars. To put this into perspective, by its own numbers the U.S. government owns a TOTAL of 105 billion dollars worth of gold, using a value of $400 per ounce. Here's the address http://www.federalreserve.gov/releases/h6/hist/h6hist10.txt for the Federal Reserve table for M3 by the week. This desperate blizzard of housing bubble prop-up phony money is an indication that my debt projections are still most likely conservative, and that Kudlow and the "shrinking deficit" crowd are most likely considerably incorrect, but if I am short, I believe the above chart might indicate considerable monetizing of the debt . (anchor)