Wikinvest Wire

Have you seen M3 lately?

Thursday, December 17, 2009

For all the talk about inflation appearing sometime in our not-too-distant future and, according to Milton Friedman, rising prices still being a monetary phenomenon, you sure don't hear too many people talking about the broadest measure of the money supply - M3.
IMAGE Reconstructed over at nowandfutures for about the last three years after the Federal Reserve discontinued it, much to the chagrin (or, maybe, delight) of those conspiracy minded individuals who viewed the move as a cover-up on the grandest of scales, it's hard to see how consumer prices are going to be bid higher anytime soon, given a chart like the one above.

Of course, if banks ever start lending some of their massive reserves, an entirely different dynamic could quickly develop and the recent trend could quickly reverse, but, fortunately, our central bank leaders have assured us that they're on top of that particular situation.

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1 comments:

Anonymous said...

The Fed head assured us that sub prime is contained, and will not be a problem. The man has no idea of what he is talking about. He is a clueless thief, who only knows how to rob people of their pensions.

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