M3 refers to the total supply of US dollars in existence (virtual and physical) around the world. Back in 2006, the US Fed decided it was time to keep quiet on how much they were increasing M3. You can see where the red line turns blue. That’s because the blue data can’t be verified, but only estimated now, by indirect means. You can ask Peter Schiff about this too, he wrote all about it in his latest book.
ShadowStats is definitely the place to look for “everything you always wanted to know about real government statistics but were afraid to ask.” It’s not conspiracy. This is the data used by such scholars on the subject as James L. Turk of GoldMoney.
For example, current CPI and PPI statistics, including unemployment statistics, are not really all that great. According to Peter Schiff they’re downright, intentionally misleading. Schiff, along with Jim Rogers and Marc Faber, believes the threat of US hyperinflation is very real. I don’t need to be convinced of that point but I’m more concerned that the US is going to coerce the rest of the world into some kind of global hyperinflation scenario. I’m not the only Canadian who’s been asking whether this would also lead to some kind of hyperinflation in Canada.
People might think this all sounds very “conspiracy-ish,” but it’s not. It’s the exact reason why China’s recently proposed a new global reserve currency.
Here, check out this video with John Williams, the guy who publishes these statistics.
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Thanks for the graph. I’m going to check out ShadowStats.com myself.
I’m always harping on how crappy the standard unemployment numbers released are, and how we can’t use them as a comparison. Just because people call it “unemployment” doesn’t mean we know what it is even based on.
I always refer to U6 myself, as compared to the standard U3. SGS is even scarier.
More great stuff, thanks!