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Chart Of The Week: M2

Tyler Durden's picture





 

Time for our weekly M2 update. Presented, as usual, without commentary.

 


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Thu, 03/03/2011 - 19:01 | Link to Comment Rainman
Rainman's picture

Damn black line on the graph looks familiar.....S&P ??

Thu, 03/03/2011 - 19:03 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

That or GLD.

Thu, 03/03/2011 - 19:06 | Link to Comment The They
The They's picture

Well, hopefully all these graphs going up will at least make people FEEL good... right?

Thu, 03/03/2011 - 19:29 | Link to Comment Bob
Bob's picture

Mo money gets folks in a partyin mood.  Course, there's such a thing as too much of a good thing . . .

Thu, 03/03/2011 - 21:24 | Link to Comment VegasBD
VegasBD's picture

As long as everyone is bi-winning we should be fine. no worries

Thu, 03/03/2011 - 22:45 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

My worry...nay...curiosity would be what M3 would have looked like.  Kind of like what Unemployment would be if calculated during the depression years.   

I think Max Keiser has the right idea and quite frankly, I would be happy to serve as the useful idiot is protesting the Federal Reserve Bank.  Get a camp out going.  Weather is breaking. Should be nice.  http://maxkeiser.com/2011/03/04/max-keiser-from-cairo-egypt-revolutions-work-what-in-the-hell-is-america-waiting-for-12/

Here is what I know.  Imagine a couple millions taunting the Federal Reserve Bank of New York peacefully and lawfully - http://www.clevelandteaparty.com/apps/photos/photo?photoid=33790557 -

I have some ideas.  I ended up on Rachel Maddow’s show being made fun of - http://www.youtube.com/watch?v=19jfGsvk40A.  I pop up around 3:20 screaming, “Who wants to print some money!”  I might be able to coordinate some press behind it as well.

Thoughts?

The second captcha just made me realized my level of intoxication. 

Thu, 03/03/2011 - 23:00 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture


April 15, 2011 W2, 1099, 1040, Schedule A, Fuck you in the Ayyyy…Burning Party?

1984 Grace Commission Report spells out the fact that EVERY DOLLAR STOLEN FROM YOUR PAYCHECK IN THE FORM OF INCOME TAXES GOES TO PAY THE INTEREST ON THE MONEY THE FEDERAL RESERVE CREATES FROM THIN AIR!  The same money that keep the "music playing".  Not to protecting us from terrorists, not to welfare, not to our national defense, not to social security, not to Medicare…not to our country. It all goes to a group of private bankers? The Federal Reserve.

Fuck the debt ceiling, fuck voting for this ass or this ass, fuck the system.  How about a quotient of integrity?

 

 

Fri, 03/04/2011 - 08:06 | Link to Comment Bob
Bob's picture

Hey, Dick, I like the idea.  April 15 is a Friday this year--the perfect weekday to get people to make a trip to DC. 

Fri, 03/04/2011 - 09:36 | Link to Comment I am more equal...
I am more equal than others's picture

As Superman says... 'up!..up!..and away!'

 

Thu, 03/03/2011 - 19:05 | Link to Comment asdasmos
asdasmos's picture

I am still very worried about June.

Thu, 03/03/2011 - 19:07 | Link to Comment Orly
Orly's picture

Who's June?

Thu, 03/03/2011 - 19:26 | Link to Comment ColonelCooper
ColonelCooper's picture

grin

Fri, 03/04/2011 - 05:51 | Link to Comment falak pema
falak pema's picture

July's elder sister! Not as hot as july but summery in her gait. What month are you, is it of female or male variety? It is difficult to tell!

Thu, 03/03/2011 - 19:09 | Link to Comment DarkMath
DarkMath's picture

fagataboutit

Thu, 03/03/2011 - 19:06 | Link to Comment cowdiddly
cowdiddly's picture

I find myself more and more less able to comment. I don't think very few on the planet with an IQ above 100 still thinks this is going to end well. Makes me kinda sick after watching for 4 years with hopes that the US would wake up and change its path,but still today. nothing except denial and arrogance. I can not say that I am overly scared of the future but I know that unimaginable hardship awaits us all. Good Luck everyone and I wish every one well in the years to come.

Thu, 03/03/2011 - 19:10 | Link to Comment Orly
Orly's picture

Thanks for that.  Best of luck to you and yours, as well!

Thu, 03/03/2011 - 19:27 | Link to Comment knavechild
knavechild's picture

If we die, we die. We all do. Do not let your fear of the future stop you from living in the moment.

Thu, 03/03/2011 - 19:36 | Link to Comment cowdiddly
cowdiddly's picture

 I stated in my post I do not fear the future. I don;t plan on dying, for you, a flag or a mob. I might aid a few in distress, that will be a landowners duty.

Thu, 03/03/2011 - 21:23 | Link to Comment VegasBD
VegasBD's picture

keep WINNING

Thu, 03/03/2011 - 21:43 | Link to Comment traderjoe
traderjoe's picture

Cheers to the above thread...

Fri, 03/04/2011 - 07:52 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

Alas! Poor Yorrick,...

Imperious Caesar, dead and turned to clay, Might stop a hole to keep the wind away

 

Thu, 03/03/2011 - 19:08 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture


Trust belt Trust companies are growing fast, fuelling fears of excessive credit growth

That quota proved impossible to enforce. Banks made 7.95 trillion yuan of new loans, and even that figure may understate their generosity. Many banks shifted loans off their books into financial products shrink-wrapped by China’s “trust companies”. These lightly regulated institutions draw money from wealthy people and cash-rich companies, promising better rates of return than banks are allowed to offer. They then lend or invest this money in property, infrastructure, financial instruments or companies, at higher rates than banks typically charge. They sold over 2 trillion yuan-worth of products in 2010 (see chart).


China’s banking regulator, the China Banking Regulatory Commission (CBRC), disapproves of the trust companies’ dalliance with the banks. In its original form banks would sell loans to trust companies, which would repackage them into a product the bank could then offer to its favourite depositors. After the CBRC cracked down at the end of 2009, this pas de deux became more of a round dance. A bank might sell a bundle of loans to another bank, say, which would pass them on to a trust company, which would then package them for the first bank to sell.

According to Fitch, a credit-rating agency, 2.5 trillion yuan was sitting off the banks’ balance-sheets in trust products at the end of November. The CBRC itself reports a lower figure of 1.6 trillion yuan at the end of 2010. These figures are small compared with China’s total loanbook (almost 48 trillion yuan at the end of 2010). But their rapid growth fuels fears of excessive credit.

On January 20th the CBRC told banks they would have to bring these products back on to their balance-sheets by the end of the year. Once on the banks’ books, this kind of lending should be easier to control. But if credit cannot flow down one channel, it may find another. In Wenzhou, a city in Zhejiang province famous for its entrepreneurs, over 1,000 unregulated lenders charge rates of 5% or so a month (an annual rate of 80%), according to the Economic Observer, a Chinese weekly. In trying to prevent off-balance-sheet lending, regulators may push credit off-off-balance-sheet.

http://www.economist.com/node/18118975?story_id=18118975&fsrc=rss

 

Thu, 03/03/2011 - 19:12 | Link to Comment Orly
Orly's picture

So the Chinese are a bunch of loan sharks and all their government officials are grafting on the take.  Beijing is not taking too kindly to this, either.

Sounds like that ponzi should crash hard and pretty soon, don't you think?

Thu, 03/03/2011 - 19:19 | Link to Comment Hugh G Rection
Hugh G Rection's picture

Time for China to launch another ICBM off the coast of CA.... or maybe we only get the one warning shot.

Thu, 03/03/2011 - 20:01 | Link to Comment MachoMan
MachoMan's picture

You mean for us to shoot it?  On the missile, in very small print it read, "keep buying treasuries.  Thank you for your cooperation."

Thu, 03/03/2011 - 20:04 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

I thought that was a Contrail. Lol'

Thu, 03/03/2011 - 19:27 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Yup ..... Bubblicious you bet ... Check this out ....

30 Experts - •  a publication  

If The China Bubble Bursts: A Symposium of Views

 

http://www.slideshare.net/ram2099/if-the-china-bubble-bursts-a-symposium...

Labor shortage as migrants quit city

 

An exodus of migrant workers from Shanghai is presenting the city with labor shortages in the service industry sector.

Soaring living costs combined with stagnant income growth is blamed for forcing workers to return home or try their luck elsewhere.

Migrant workers, especially those working at restaurants, household service companies and factories, on salaries of about 1,000 yuan (US$150) a month, are finding it increasingly difficult to cover basic expenses in Shanghai, where prices have been rising steeply.

Dong Xuemei, 34, from Chongqing Municipality, who works at a Japanese restaurant on Wujiang Road, complained about her low wages. "I can't afford 1 kilogram of ordinary fruit with an hour's pay."

Dong is paid an hourly rate of 7.8 yuan. If she worked overtime every day, her monthly income would be 2,000 yuan. Though the company offers two free meals a day, there's still little left after she pays for rent and other expenses.

http://english.eastday.com/e/101205/u1a5589976.html

 

Thu, 03/03/2011 - 19:31 | Link to Comment JonTurk
JonTurk's picture

if China bubble burst, US is number 1 going down to the shithole.

the bells are tolling for the crumbling of the modern Roman Empire.

 

 

Thu, 03/03/2011 - 19:54 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Nope. We are a consumer economy. ( 70% GDP • $14.26 Trillion GDP ) Not many of our global big boys sell into China's market.  China will drop prices trying to keep sales moving. This will not stop China , it's going to be a big bump in the road. You will see 5-6% GDP moving forward after this. 

Commodities will pop, big. A boon for the USA. Oil , copper, all of them will get blasted.

 

The miners in Australia and Brazil will get monkey hammered. But if it's a total meltdown then yes, America will be affected .... 

Fri, 03/04/2011 - 12:40 | Link to Comment JonTurk
JonTurk's picture

you will see what will happen when China stop supporting US ponzi and start to offload its paper..

China is an ancient civilization with 4000 years of history. Chinese can survive with one fistful of boiled rice a day, your 100 kg average sixpack joe would die starving when depression hits.

Thu, 03/03/2011 - 19:40 | Link to Comment Orly
Orly's picture

How does no one name the obvious: Australia.

If China goes down, Australia gets crushed.  End of story.

Thu, 03/03/2011 - 19:53 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Huge Hendry is shorting Japan manufacturers (cds's). Chanos does it another way .....

 

The real issue is the timing. I was reading about the housing bubble in 2004. Chanos & Hendry started shorting about one / two years ago.

 

Huge Hendry 

http://www.youtube.com/watch?v=ektMQGbW3wk

 

Jim Chanos

http://www.youtube.com/watch?v=JnJC0HBWylk

Thu, 03/03/2011 - 19:55 | Link to Comment Orly
Orly's picture

It is apparent that of all the mis-management in the Chinese economy, what with the massive mis-allocation of resources, will not be what will bring the Chinese down.

Instead, the "bump in the road," as you say, will open a crack in a window for the people to (for lack of better words...) rise up against their oppressors and shake off the burden of the state.

Remember, all politics is local.  No one in Guang Zhou really cares about what goes on in Beijing.  They're more concerned with the local magistrate who has been on the take for decades; police captains; health inspectors and the like.  These are the faces that people see when they see national oppression and those are the faces they will see on the other side of the police barricade.

Thu, 03/03/2011 - 20:01 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Thats a great question. With 1.5 billion people the shit may hit said fan. Not sure they like living like dogs. As princelings prance around ....

 

.... " Peter Foster

By Peter Foster, Beijing 9:00PM GMT 06 Dec 2010

The damning description of China's secretive leadership machinations also
described how the descendants of China's Communist revolutionaries - known
as "princelings" - derided officials from less august revolutionary
backgrounds as mere "shopkeepers".

The assessment of what motivates China's opaque top-level decision-makers
was relayed to Washington in July 2009 in one of the 250,000 cables
published by the WikiLeaks website.

"China's top leadership had carved up China's economic 'pie,'" the US
embassy contact said, "creating an ossified system in which 'vested
interests' drove decision-making and impeded reform as leaders maneuvered to
ensure that those interests were not threatened." The US embassy contact
also asserted there were no "reformers" within the top Communist Party
leadership, only competing factions that sought to protect their business
empires from attack by in-coming leaderships.

The source said that it was "well known" that former Chinese premier Li Peng
and his family controlled China's "electric power interests" while the
country's security tsar Zhou Yongkang controlled the state monopoly of the
oil sector.

The wife of China's premier Wen Jiabao, a popular figure in China often
affectionately referred to as "grandpa Wen" for his feelings for the common
man, is said to control China's "precious gems" sector, while Jia Qinglin,
ranked fourth in the Politburo, has "major Beijing real estate

developments". " ...............

 


http://chinesepolitics.blogspot.com/

Thu, 03/03/2011 - 20:07 | Link to Comment Orly
Orly's picture

That's exactly correct.  The French Revolution was not brought on because the King's mistress said, "Let them eat sweetbread."  Four people- maybe- heard that.

It was brought on by the years of resentment and abuse not directly associated with the crown.  Rather, it was the locals, committing crimes of the perversion of power in the name of the crown that brought the people- finally- to a boiling point.

Thu, 03/03/2011 - 21:29 | Link to Comment LeBalance
LeBalance's picture

I suggest the first 100 pages of Nesta Webster's French Revolution and call me in the morning.

French Revolution == Weisshaupt Managed Put-on.

Thu, 03/03/2011 - 22:34 | Link to Comment Sean7k
Sean7k's picture

Good to see and hear you LeBalance.

Fri, 03/04/2011 - 05:54 | Link to Comment falak pema
falak pema's picture

I thought she was his wife, whom he rarely visited at night or during the day. He preferred mending locks in his spare time!

Thu, 03/03/2011 - 21:51 | Link to Comment dark pools of soros
dark pools of soros's picture

after the big global meltdown, the BRICs will probably get a rival economy flowing that isn't debt based like the west...

Thu, 03/03/2011 - 19:46 | Link to Comment chet
chet's picture

I've been following the Vancouver BC  housing bubble.  There is no lack of foolish speculation by locals, but it is hard to avoid all the stories about chinese buyers swooping in to buy multi-million dollar properties with cash, and then not even living there.

I think about who these chinese buyers might be.  All factory owners, honest winners of the new capitalism?  Or government bureaucrats and crooks who are embezzling money and socking it away outside of China?  I tend towards the latter.

Thu, 03/03/2011 - 20:01 | Link to Comment Orly
Orly's picture

That's the other part of my proposed scenario.  Once the people take over, all of those assets will be vacated and abandoned, at best, or locked in the litany of the law for years and years.

Idle property...that can't be good.  And this is all over the world, including Africa and South America.  If it is not mult-million dollar homes in the US, it is mining structures and oil fields that will also lie dormant.

Fri, 03/04/2011 - 05:57 | Link to Comment falak pema
falak pema's picture

That's the ideal scenario for changing to the new economic paradigm : Economia, ecologia, humania. Here we go once the roof falls in of the old house!

Thu, 03/03/2011 - 20:11 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Kind of like Muammar Muhammad al-Gaddafi • Colonel Gaddafi •

The United States has seized $30 billion of the Gadhafis’ investments, Canada has frozen $2.4 billion, Austria, $1.7 billion, and the United Kingdom, $1 billion. “These assets appear to be just the tip of the iceberg, as no one is yet certain exactly what the family owns around the world,”

Gadhafi's Fortune in Photos 

According to a report in Britain’s Daily Mail, which features photographs of a magnificent $15 million luxury mansion in London that is owned by Gadhafi’s son Saif.

Thu, 03/03/2011 - 20:17 | Link to Comment Orly
Orly's picture

There's always blowback, Mr. Smailes.  Always blowback.

Fri, 03/04/2011 - 05:46 | Link to Comment falak pema
falak pema's picture

What's to stop the west immediately using some of this stolen, frozen money of Ben ALi/Mubarrak/Khadaffi into financing real development in Tunisia, Egypt, Libya. There is a huge virgin growth market untapped out there.

Thu, 03/03/2011 - 23:28 | Link to Comment MountainLotus
MountainLotus's picture

@Spalding_Smailes Hmm, actually this article said that the Chinese is really doing a good job controlling the loan shark.

Fri, 03/04/2011 - 00:38 | Link to Comment Orly
Orly's picture

So it begins.

Here is the government admitting the problems go three deep.

http://www.chinadaily.com.cn/imqq/china/2011-01/11/content_11830423.htm

Thu, 03/03/2011 - 19:11 | Link to Comment cougar_w
cougar_w's picture

Don't even need a ruler with that one.

Thu, 03/03/2011 - 19:14 | Link to Comment NotApplicable
NotApplicable's picture

Why, there's more money for everyone! We're saved!

Thu, 03/03/2011 - 19:14 | Link to Comment MolotovCockhead
MolotovCockhead's picture

Situation under control.......don't worry. Just make sure Helicopter Ben's printing machines don't break down and everything is ganna be okay!

Thu, 03/03/2011 - 19:28 | Link to Comment prophet_banker
prophet_banker's picture

where's this money coming from????  it's all derivatives and bonds, and it is not like money expansions of the past, where money borrowed to people and businesses actually made into a middle class economy, NO this money expansion is aLL WALL STEEt

Thu, 03/03/2011 - 19:32 | Link to Comment Bob
Bob's picture

That's what I'm thinking--where the fuck is my new fiat?

Thu, 03/03/2011 - 19:39 | Link to Comment RockyRacoon
RockyRacoon's picture

It's being prudently invested for you by the fine folks over at Goldman Sachs.

Rest easy.

Thu, 03/03/2011 - 19:37 | Link to Comment Diamond Jim
Diamond Jim's picture

the graph is pointing up, up and away...yahoooooo. What could possibly go wrong.

Thu, 03/03/2011 - 19:49 | Link to Comment chet
chet's picture

M2 has actually been going up at a pretty similar slope since the mid-90's.  Not saying it's good, but this level of growth isn't a recent thing.

Thu, 03/03/2011 - 20:02 | Link to Comment Scottj88
Scottj88's picture

We have a lot of problems...
It is time we start looking at out "deficit" the right way...

http://thehardrightedge.com/budget/

Thu, 03/03/2011 - 20:11 | Link to Comment ATG
ATG's picture

M2 is still a derivative of Monetary Base, which does not look at all expansive over the last 12 months:

http://research.stlouisfed.org/fred2/graph/?chart_type=line&s[1][id]=BASE&s[1][transformation]=pc1

http://www.youtube.com/watch?v=UbCv6b96OK0&feature=related 10:57

Thu, 03/03/2011 - 21:05 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Thanks for the chart.

Thu, 03/03/2011 - 22:47 | Link to Comment GoinFawr
GoinFawr's picture

I must be reading it wrong: doesn't anything in positive territory on that chart indicate 'expansion'?

Thu, 03/03/2011 - 20:28 | Link to Comment goldenbuddha454
goldenbuddha454's picture

game over with QE 3, then the world will know for sure U.S. dollars are worthless.  At present, there are still some countries that put faith in the dollar, but come June, its game over.  Show your cards.  Utah is already beginning to create legislation to accept gold and silver as legal tender.  Bernanke should be fired today to save this country.  What's his exit strategy with QE?  He has none.

Thu, 03/03/2011 - 20:28 | Link to Comment savagegoose
savagegoose's picture

forgot, cost of living, unemployment, corruption, despair. also match the money supply

Thu, 03/03/2011 - 20:54 | Link to Comment toros
toros's picture

A picture is worth trillions of dollars.

Thu, 03/03/2011 - 21:58 | Link to Comment goldenbuddha454
goldenbuddha454's picture

The curve is steepening, not good!

Thu, 03/03/2011 - 22:19 | Link to Comment torabora
torabora's picture

Just wait until the Indonesian Imbecile starts bombing Lybia.

Thu, 03/03/2011 - 22:41 | Link to Comment Sean7k
Sean7k's picture

I don't mean to be a spelling nazi, but I have yet to see anyone spell LIBYA correctly- it's driving me nuts. Sorry.

Thu, 03/03/2011 - 22:50 | Link to Comment dark pools of soros
dark pools of soros's picture

is there a labia reduction in oil?

Thu, 03/03/2011 - 22:55 | Link to Comment Sean7k
Sean7k's picture

No idea, but it sure would be more representative name for the country...

Fri, 03/04/2011 - 00:41 | Link to Comment Orly
Orly's picture

The spelling was sent by the White House, via Twitter no less, just the other day.  It is a joke, but now it's sort of a code- like in The Sting, when they rubbed their noses as a signal.

It is how we recognise each other.

:D

Thu, 03/03/2011 - 23:46 | Link to Comment glenlloyd
glenlloyd's picture

but wait....isn't up a good thing?

Fri, 03/04/2011 - 05:23 | Link to Comment goldenbuddha454
Mon, 03/07/2011 - 20:43 | Link to Comment lsjcma
lsjcma's picture

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