The recent controversy over US RFID Passports has made me think more about identity theft. Basically what is happening is that the United States government is going to be embedding radio frequency identification chips in to new US passports. The chips broadcast the holders personal information — the government claims its safe because it is encrypted. Take a guess on that one.

Identity theft is a very serious problem. Criminals who have access to key information about a target (typically social security number, etc.) are able to impersonate that person and recieve financial gain in the target’s name. Thie criminals can get credit cards and even home mortgages. Worse, some identity theft victims end up with criminal records or even arrest warrants because someone else is using their name. Its scary to think that someone can be arrested, booked, and sent to prison under your own name.

So how does this personal identity theft issue relate to global money supply?

The issue is information deception. How do you verify if what you are being told is real?

As you know, the fed doesn’t report m3 anymore. They claim there is too much information and it is too complicated to track.

I didn’t make this blog to spread conspiracy theories.. but what if someone is making up information? How do we verify it?

Some of these deceptions have been pretty transparent. We already know that the Whitehouse (both the Clinton and Bush administrations) published government debt levels that do not match up with true liabilities. Others have pointed out that the accounting methods the US government uses would make Arthur Andersen look like good guys.

Could this be the new identity theft? I am observing the impact that Greenspan’s super-low interest rates have had on the real estate market.

Take South Florida for example. Valuations skyrocketed and insurance rates followed with it. I know someone who needs a commercial property insured. He used to be paying $17,000 a year. Now the insurance company was $250,000 a year with a $500,000 deductible.

Thats just one of the many negative side effects of low interest rates and massive money supply growth. To me, thats theft.