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Title: Re[4]: [RT] A note on Forecasting / Mandelbrot
> If M3 were still computed, it would be through the floor I expect.
Here is a reconstruction of M3 from http://nowandfutures.com/key_stats.html. I know nothing about this group's qualifications or motivations.
The chart certainly shows a marked decline in the rate of M3 growth (the blue line and right hand scale), but it is not negative (yet). Look at the acceleration in the rate of growth between July 2007 and June 2008! That was the highest rate of growth since at least 1959. Mr. Bernanke was certainly flooding the money supply in an apparent attempt to head off what we see between July and November.
Below this chart is another with a longer term view.
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