Gold and What Moves it.

The velocity of money is in free-fall, and borrowing, squandering and printing trillions of dollars to prop up a diminishing-return Status Quo won't reverse that historic collapse.

Courtesy of Chartist Friend from Pittsburgh, here are three charts overlaying the velocity of money and the Federal surplus/deficit. The charts display the three common measures of money: M1, M2 and MZM. From the St. Louis Federal Reserve site: 

M1 includes funds that are readily accessible for spending. M1 consists of: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) traveler's checks of nonbank issuers; (3) demand deposits; and (4) other checkable deposits (OCDs). 

 

M2 includes a broader set of financial assets held principally by households. M2 consists of M1 plus: (1) savings deposits (which include money market deposit accounts, or MMDAs); (2) small-denomination time deposits (time deposits in amounts of less than $100,000); and (3) balances in retail money market mutual funds (MMMFs). 

 

Money Zero Maturity (MZM) is M2 less small-denomination time deposits plus institutional money funds.

 

The correlation of deficit spending and money velocity is especially striking in the chart of M2 velocity. ...

http://usawatchdog.com/guns-protect-honest-people-catherine-austin-fitts/ ;

Catherine Austin Fitts of Solari.com says the real fight over the fiscal cliff is how we are going to pay for the mess. Fitts thinks, "Politicians have already committed to inflation." Fitts predicts, "The chances of another financial collapse are very small because every time we come up to a moment where a financial collapse starts to be a real risk, what happens? We get war." Join Greg Hunter of USAWatchdog.com as he goes One-on-One with financial expert Catherine Austin Fitts.

Lawmakers in Virginia say they want to keep their options open in case the value of the U.S. dollar ever collapses --- so they're considering minting state coinage.

Robert Fitzwilson, wrote the following piece exclusively for King World News:

 

“Over the millennia, gold and silver have been the critical intermediaries between purchasers and providers of goods and services.  Having a sound standard for economic activity has been a critical factor in the rise of history’s most influential societies.  In our time, nothing seems to generate more heated discourse than the topic of a gold standard.  

 

The intensity of the controversy should be viewed as odd.  Gold and silver have been used as money for almost all of mankind’s recorded economic history.  Only in the last 40 years have calls for the return to some form of a gold standard invited such extreme ridicule from academics and popular media alike.  This is despite the overwhelming evidence that sound money is one of the critical prerequisites to sustainable, long-term economic prosperity.  It is also odd in that standards of all kinds are accepted in our daily lives....