Australia and money supply growth

The reason the money supply still expanded during the gold standard was because the governement was still cheating. They were still "printing" money out of thin air.
That why the gold standard had to be ended, so much more money had been created than what the underlying gold base allowed.
The gold standard was a bad idea. What we need is a "gold coin" standard. No central bank, and 100% backed currency.
 
Whoever has control of the money is always going to take their cut. I don't believe any man made system can stay honest for too long.
 
The only problem is the government. The government is NEVER honest, and can NEVER be expected to do the right thing for the people.
In a free market the action of consumers and competition would never allow this to continue for very long.
 
Ernster said:
Whoever has control of the money is always going to take their cut. I don't believe any man made system can stay honest for too long.
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Exactly. That's why need sound money, free banking and liquidation of the central bank and privatisation of the mints.
 
We need market-based money. We need competition in money. Who knows what configuration or what innovations there might be surrounding money if anyone was free to enter the marketplace and present their ideas to customers?

Central banking is a centuries old technology now. It has no place in the modern world.
 
hawkeye said:
We need market-based money. We need competition in money. Who knows what configuration or what innovations there might be surrounding money if anyone was free to enter the marketplace and present their ideas to customers?
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Exactly

Central banking is a centuries old technology now. It has no place in the modern world.
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It has a very important place in the world, it just depends on your perspective.
If you are involved in the government or a government special interest group then a central bank is very important to constantly rob ordinary people and maintain the ever expanding power and size of the state.
 
An observation.

Back in 1959, currency (notes + coins in circulation) was approx 10% of the total money supply here in Australia.

In 2012, currency is now only 3.75% of the total money supply.

478_m3_vs_currency.png


478_m3_vs_currency_percent_2.png
 
rbaggio said:
Over the month of July, M3 grew by 0.7 per cent and broad money grew by 0.6 per cent. Over the year to July, broad money grew by 8.4 per cent.
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Over the month of August, M3 grew by 0.2percent and broad money grew by 0.2percent. Over the year to August, broad money grew by 7.2percent.
 
Over the month of September, M3 grew by 0.6percent and broad money grew by 0.6percent. Over the year to September, broad money grew by 7.1percent.
 
Over the month of October, M3 grew by 0.3 per cent and broad money grew by 0.2 per cent. Over the year to October, broad money grew by 6.8 per cent.
 
Over the month of November, M3 grew by 0.2 per cent and broad money grew by 0.2 per cent. Over the year to November, broad money grew by 6.6 per cent.
 
Over the month of December, M3 grew by 0.6 per cent and broad money grew by 0.5 per cent. Over the year to December, broad money grew by 6.6 per cent.
 
Over the month of January, M3 grew by 0.7 per cent and broad money grew by 0.5 per cent. Over the year to January, broad money grew by 6.3 per cent.
 
Over the month of February, M3 grew by 0.2 per cent and broad money grew by 0.1 per cent. Over the year to February, broad money grew by 6.0 per cent.
 
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