Adjusted Monetary Base

The Chart above shows the Adjusted Monetary Bases. Look at the growth between May and Sept. Roughly 9.20% growth in less than four weeks! That's what I would call hyperinflation. This is extremely important since the Fed had pursued a more or less stable AMB growth.

Being that the Federal Reserve has entered a stage of hyperinflation money creation, this would not allow for crude prices to go down significantly (absent Fed intervention, because of the underlying recession, commodities prices would fall)

From Gary North:
" Ben Bernanke's helicopter has finally lifted off the pad.

The FED is in panic mode. It is inflation the monetary base at an astounding rate.

This is the very early phase of the big bank bailout.

I think this is the turning point. From now on, Bernanke will imitate Greenspan in 1987, 1999, and 2001.

Monetary inflation has begun. It won't stay at this pace. No country can survive anything like this. But it shows where we are headed.

The FED has to get the Congress to intervene and save the banks. If Congress refuses, mass inflation is inevitable. There is a market for Treasury debt. If Congress authorizes the sale of Treasury securities by raising the debt ceiling, the FED can back off. If Congress refuses, then it's "mass inflation, here we come."

I think Congrress will buckle. But I could be wrong."