The RedbirdTx Money Status system is a "proprietary" mathematical relationship of economic and other data. It is different from anything ever assembled. The INDICATOR NUMBER factors in the value of the dollar in the world market plus other hidden factors such as inflation, transportation, manufacturing, and retailing. The outcome or single number represents how "money" for Americans is changing in the "world's" economy. THE SYSTEM IS LIKE AN "ECONOMIC" CLOCK. (Bookmark the page to check the long term changing money status reflected by the "true" value of money.)
Money Status (Historical Record) Status (Money/Dollar Value from $1.00)
Baseline: September 21,2008: 0 (1.00 Dollar)
October 1, 2008: -1 (0.996)
October 15, 2008: -4 (0.991(After Week Long Stock Market Decline)
November 1, 2008: 1 (1.004) (Drop in oil prices to 67.81)
November 15, 2008: 6 (1.016) (Oil Prices continue to drop)
December 1, 2008: 3 (1.008)(Oil Stabilizing/Bailout money being spent.)
December 15, 2008:-1 (0.996)(Federal Deficit increasing rapidly.)
January 1, 2009: -6 (0.986)(Deficit Increase Continuing)
January 15, 2009: -2 (0.996)(Goods Being Discounted)
February 1, 2009: -1 (0.996)(Discounting Continuing)
February 15, 2009:-1 (0.997)(Stimulus Bill Passed)
March 1, 2009: 3 (1.008)(Dollar against Foreign Currency is Rising)
March 15, 2009: 4 (1.010)(Dollar has remained stable.)
April 1, 2009: 2 (1.004)(Dollar fell a little.)
April 15, 2009: 2 (1.003)
May 1, 2009: 0 (.999)
May 15, 2009: -2 (.995)
June 1, 2009 -6 (.984)
June 15, 2009 -4 (.991)
July 1, 2009 -3 (.992)
July 15, 2009 -5 (.986)
August 1, 2009 -7 (.983)
August 15, 2009 -6 (.985)
September 1, 2009 -7 (.983)
September 15,2009 -9 (.978)
October 1, 2009 -11 (.973)
October 15, 2009 -11 (.973)
November 1, 2009 -10 (.975)
November 15,2009 -11 (.972)
December 1, 2009 -12 (.969)
December 15, 2009 -10 (.978)
January 1, 2010 -9 (.979)
January 15, 2010 -12 (.971)
February 1, 2010 -10 (.976)
February 15, 2010 -10 (.976)
March 1, 2010 -10 (.975)
Next Update: 3/15/10
What does the NUMBER mean?
The number tracks the "real value" of money in the complex world economy. The first number is the trend starting on September 21, 2008. The second number in (parenthesis) is what your money will buy today as opposed to September 21, 2008. It is not the state of the economy but what your money will buy in this economy.
The "Money Equivalent" is based on a dollar. Using the number in (parenthesis) for example: .95 indicates that the dollar will buy only ninety five cents worth of merchandise from what it would have bought on September 21, 2008 in the world economy. See the Comments section below for an explanation of the trends.
This is a LONG TERM averaging indicator and not subject to day to day fluctuations like the stock market.
Comment Section:
If you have "Money" cash on hand, you are in a worse position than on 9/21/08.
The Federal deficit and inflation is increasing due to runaway federal spending. The dollar has begun a period of devaluation. The actural state of the dollar is masked somewhat by the inflationary rises in world currencies. Inflation will be much worse if oil prices rise again.
The federal government needs to get out of the money lending business by allowing interest rates to float. Higher interest paid by banks to consumers to use their money will result in increased spending by these consumers and provide for real recovery. It will also keep inflation low. This practice will lower the deficit because the interest paid is taxable.
Since much of the stimilus money was directed to nonproductive activities instead of infrastructure and energy improvement,a lasting recovery will be delayed. The credit problem is far from over. The next major credit issue is starting to unfold with credit companies/banks scrambling to increase fees and interest to cover the bad debts. Those with good credit and money will be targeted. Watch for the bad commercial notes to also start to increase.
China, Europe and the oil rich Middle East are worrying the US is spending far more than its ability to repay in a reasonable time without a massive devaluation of the currency. Their concerns about the devaluation of the dollar are valid and could result in them reducing the amount of US bonds they purchase. Interest on bonds being sold to finance the US debt will have to be increased greatly in order to sell them. This could accelerate the devaluation of the dollar and further increase inflation at the same time. Devaluation of the dollar transfers personal wealth to the federal government.
Government economists say the only way to get out of a recession is to spend and print more money. To pay for this wasteful spending, the currency continues to be devalued thus transferring the excessive spending to foreign investors, falling retirement fund values and vanishing savings accounts. "You can bail a boat but until you fix the leak it will continue to get worse." The leak in this case is our personal and national debt.
As prices continue to increase, people have a tendency to do without the services and shelter their money instead of spending it. Recent surveys have documented lower spending by individuals. In addition people are out of money to spend!
Remember the most important cause of the loss of money/wealth occurs when the government borrows and loans money recklessly. There is no end in sight as to how high the National Debt will go.
RedbirdTx's Prediction (Economic Clock):
RedbirdTX estimates the money system will fail at (-400) because no one will be buying government securities/notes, confidence will be lost worldwide in our money, and inflation will be out of control due to excessive printing of money with nothing to back it up. A new world wide currency will be put into circulation at that point.
All rights to the "RedbirdTx Money Status" system and numbers are protected and cannot be reproduced or reprinted without the permission of David Henrichs, 801 South Pecan, Moulton, Texas 77975. The system is provided for "entertainment purposes" and is not to be relied on for any money or business transactions. The Status is produced at the end of a time period and in no way predicts any future values. This site is not connected to or funded in any way by a governmental enity.
