(Untitled) Aug 2nd 2013, 09:47, by noreply@blogger.com (Cliff Küle) Gold to Monetary Base The Ratio Tells A Story Macro Trends provides the above chart showing the ratio of the gold price to the St. Louis Adjusted Monetary Base back to 1918 .. "The monetary base roughly matches the size of the Federal Reserve balance sheet, which indicates the level of new money creation required to prevent debt deflation. Previous gold bull markets ended when this ratio crossed over the 4.8 level." .. we are no where near that level today .. click on chart to enlarge. link here to the reference |
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