I'm not expert on money supply but my understanding is that M2 is
being
driven by relentless flow of funds into money market. A strong
argument can
be made that we are undergoing the greatest credit and lending
contraction
since the great depression. Banks are in constant fear of
violating reserve
requirements as their assets become impaired so they
minimize lending.
Investment banks are in similar situation. Consumers are
now reducing debt,
not adding. Fed is pushing on a string lowering rates
trying to get everyone
to borrow again but it is not working because of
asset quality issues. This
is not going to change anytime
soon.
Inflation is being driven by food, energy, declining dollar, and
inflation
in China, not by expansion of the money
supply.
Earl
-----Original Message-----
From: realtraders@yahoogroups.com
[mailto:realtraders@yahoogroups.com]
On
Behalf Of Ben
Sent: Saturday, March 01, 2008 3:41 PM
To: realtraders@yahoogroups.com
Cc:
TimeandCycles@yahoogroups.com;
vincenn
Subject: [RT] m2 monet supply
I gues fed is REALLY afraid
here
look at last 8 weeks or m2
Money Supply
The chart below has
bee provided by Gordon Harms.
M2 has moved above its already elevated
growth rate of the past year
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