Weekly M1 and M2 Money Supply

This week M1 money supply ( which includes Travelers Checks, demand deposits, and other checkable deposits) jumped 1.84% this week and M2 money supply ( which includes M1 plus, Retail Money Market Mutual Funds, savings, and small time deposits) jumped 0.45%.  You can see in the YoY (Year over Year) comparison chart that M1 has taken a sharp uptick compared this time last year.  

Weekly Bank Failures

This week we saw 4 more banks fail bringing the total to 18 failed during 2011.  This week the following banks failed: Canyon National Bank in Palm Springs California, Badger State Bank in Cassville Wisconsin, Peoples State Bank in Hamtramck Michigan and Sunshine State Community Bank in Port Orange Florida.  

Mohamed El-Erian on Egypt and the Markets

Jim Rickards on Cairo and Currencies

FED POMO Purchase

The FED performed POMO (Permanent Open Market Operation) purchase of $7.375 billion dollars today.  This brings the total since November 11th 2010 (when the FED announced printing $600/900 billion dollars by June 2011) to $336.308 billion dollars and since August 17th 2010 a total of $400.768 billion dollars has been printed.

OPERATION 1 - RESULTS

Operation Date:	02/11/2011
Operation Type:	Outright Coupon Purchase
Release Time:	10:15 AM
Close Time:	11:00 AM
Settlement Date:	02/14/2011
Maturity/Call Date Range:	08/15/2016 - 01/31/2018
Total Par Amt Accepted (mlns) :	$7,375
Total Par Amt Submitted (mlns) :	$24,073

FED to Print $97 Billion Dollars

The FED announced Thursday that he will print $97 billion dollars by March 9th 2011.  The $97 billion dollars will be printed between Feb 11th 2011 to March 9th 2011.  The FED posted its latest schedule as you can see here.

Weekly Fund Flows

This weeks fund flows report showed a slowing in the buying of domestic stocks, but still remain postive in-flows and municipal bonds continue the hemorrhaging.  Domestic stocks saw in-flows of $1.414 billion dollars, foreign stocks in-flows of $346 million, Taxable bonds with in-flows of $1.754 billion and municipal bonds had out-flows of -$1.171 billion dollars.  What we need to watch for is if support for Domestic stocks fizzles out and goes negative again, that would be very telling and may prompt the need for additional money printing to hold up the market.

FED POMO Purchase

The FED performed another POMO (Permanent Open Market Operation) purchase of $7.15 billion dollars.  This brings the total amount printed since November 3rd, 2010 (when the FED announced the printing of $600/900 billion dollars by June 2010) to $328.933 billion dollars and since August 17th, 2010 the total is $393.939 billion dollars.

OPERATION 1 - RESULTS

Operation Date:	02/09/2011
Operation Type:	Outright Coupon Purchase
Release Time:	10:15 AM
Close Time:	11:00 AM
Settlement Date:02/10/2011
Maturity/Call Date Range:	02/15/2015 - 07/31/2016
Total Par Amt Accepted (mlns) :	$7,510
Total Par Amt Submitted (mlns) :	$27,685

FED POMO Purchase

The FED performed another POMO (Permanent Open Market Operation) purchase yesterday of $2.19 billion dollars.  The total since November 3rd 2010 (when the FED announced printing of $600/900 billion dollars by June 2010) to $321.423 and since August 17th 2010 the FED printed $385.883 billion.

OPERATION 1 - RESULTS

Operation Date:	02/08/2011
Operation Type:	Outright Coupon Purchase
Release Time:	10:15 AM
Close Time:	11:00 AM
Settlement Date:	02/09/2011
Maturity/Call Date Range:	08/15/2028 - 11/15/2040
Total Par Amt Accepted (mlns) :	$2,190
Total Par Amt Submitted (mlns) :	$9,391

FED POMO Purchase

The FED performed another POMO (Permanent Open Market Operation) purchase of $8.359 billion dollars.  The total since November 3rd, 2010 (when the FED announced the printing of $600/900 billion dollars by June 2010) is now $319.233 billion dollars and since August 17th, 2010 $383.693 billion has been printed.

OPERATION 1 - RESULTS

Operation Date:	02/07/2011
Operation Type:	Outright Coupon Purchase
Release Time:	10:15 AM
Close Time:	11:00 AM
Settlement Date:	02/08/2011
Maturity/Call Date Range:	02/15/2018 - 11/15/2020
Total Par Amt Accepted (mlns) :	$8,359
Total Par Amt Submitted (mlns) :	$23,176

Weekly King World News Interviews

This week King World News interviews Jim Rickards, Gerald Celente, James Turk and Ben Davies.  Topics cover Russia gold buying, world hunger and inflation, Tunisia, Egypt and the Economy.  Please keep in mind like anything you look at what interests each individual has in gold and silver.

Jim Rickards - Discusses various ideas on getting out of this currency crisis, one that centers around multiple reserve currencies.  This idea wouldn't involve the dollar going to zero.  The other idea are gold back currencies.  Jim talks about events in Davos that effect our monetary system and the fact that Russia is looking to buy 100 tonnes per year and are diversifying away from the dollar by creating their own sovereign wealth fund.  Jim also talks about how food is going up all over the world resulting in food riots.

Gerald Celente - Discusses why the rioting is happening around the world (lack of food) and how all of this is going to result in world wars as they have in the past (per Gerald).  Gerald talks about how we have to get ready for what is to come, physically, mentally and other.  He thinks that alternative energy will be a game changer going forward and need to increase our productive capacity.

James Turk - Discusses long term interest rates, interest rates are going much higher.   He discusses how interest rates are going up even though the FED continues to print money to suppress interest rates.  James talks about how tight the silver market is as it is in backwardation now and silver is leading the way.  He mentions how the silver mine production is fixed for the next few years and will cause it to go up higher.  He discusses the contraction in open interest in silver and that things are looking bullish for metals.  He talks about sovereign issues are going to come to roost here shortly as Japan has been downgraded recently.  They also discuss how many of the dealers have run out of 100oz silver bars.

Ben Davies - Discusses manipulation in the gold and silver market and what is occurring with recent selling and how their is an extreme amount of physical tightness in the market.  Ben talks about possible inaccurate reporting in the SLV and GLD.  He points out that redemption of baskets of shares for physical possession is a sign of a shortage of gold.  Throughout 2010 flows into gold ETF's has been much less than 2009 and this redemption in the GLD is a sign of a need for gold not a desire to dump it.

Weekly M1/M2 Money Supply

In this weeks money supply report we saw an increase in M1 money supply (which includes currency, Travelers checks, demand deposits and other checkable deposits) of 8.6 and a decrease in M2 money supply (which includes M1 plus; retail MMMF's or Money Market Mutual Fund, savings and small time deposits) of -33.2.  This could mean that people started moving money out of their MMMF's and into the stock market, which would be validated by the surge seen for in-flows on Domestic stock funds from the Fund Flow Report or that people are withdrawing more out of their accounts and spending more (or both).

Monthly Food Stamp Report

In November 2010 we saw 394,916 people added to the Foodstamp program (who knows how many are on it now with the recent bout of inflation).  The official count for November 2010 sits at $43,595,794.  Arizona, Iowa, Louisiana, Maine and Utah saw reductions, while the remaining states saw increases.  The following states had increases of over 20,000 people on foodstamps in one month.

State	Added Number
California	22,003
Florida	42,731
Georgia	21,983
North Carolina	27,697
Ohio	61,660
Texas	32,042

Weekly FDIC Bank Failures

This week we lost 3 more banks, bringing the total to 14 banks so far in 2011.  The following banks failed this week; Community First Bank Chicago in Chicago Illiniois, North Georgia Bank in Watkinsville Georgia and American Trust Bank in Roswell Georgia.  This puts Georgia in the lead with 4 banks failed so far this year.