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As usual, one chart is worth a thousand words, and a couple hundred billion in real, incremental dollars.
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Sweet...when do I get my check in the mail?
i'm calling bullshit on that chart. m2 is up 3.5% in one year. big deal. the chart distorts the increase because the chart doesn't show the full x and y axis. cheap trick.
Did someone say Cheap Trick?
I made a few new Youtube videos.
Congressman Steve Cohen AKA Nathan Thurm
Jesse Ventura Police State Fema Camps Remix
The Precautionary Principle Who Benefits?
...my take on it, too.
I am far more worried that it did not go up far more.
actually, m2 may have gone up more. if the source of those numbers is the privately owned federal reserve bank, then who knows what the real numbers are. does anyone believe anything they say?
...and we should really be looking at M3 (or a re-creation of it) to get the big picture.
I just looked at a 20 year chart of M2 (sorry I was not able to pate it here for some reason, but the trendline in the present and that past are the same.
...and here are a couple of M2 and "M3" charts with rates of change...
...look at the "FTTM" chart....that shows the real impact of the POMO....that's the chart Tyler should post above....
M3 is too expensive to report these days. The Federal Reserve can no longer afford to calculate it, so they said when they stopped doing so a few years back at the start of this depression. Google "disingenuous" for details.
+1099 Timmay bitches!
....and look at those FTTM charts....and I was worrying about the recent price action in silver....nevermore
At least your comment makes sence!
So, we've basically been straight-line off to infinity since about 1995 (aka, the pinacle of the Greenspan era), right?
It would be very interesting to see that chart in inflation adjusted USD, methinks.
That chart was pulled directly from the St. Louis Fed -- no distortion just reporting a factual event -- you might not be used to seeing facts reported. It can be shocking.
That looks like the price of food. Strange. I don't get it.
Thanks for the laugh you made my day.
Steve Liesman is just the jewel of the dephile. He just keeps giving and giving and giving. Endlessly entertaining that man is.
"There's no inflation." - Ben Shalom Bernanke, Market Czar
WHEEEEEEEEE!!!!!! Going up the Roller Coaster!!! Wait does this come down on the other side??? :(
Looks like a Stairway to Heaven.
Well, it looks like the shit is really hitting the fan tonight.
?? What fan are you watching? I've seen nothing...fannish.
He said he was not actually printing money people. "Not printing it". What don't you understand?
"Some people think we are actually printing money". We are not. Jeesh!!!!
It's a cookbook!
Serling silver comment!
I have to agree with Prof. Frink.
They don't print it they digitally create it. You know when you get those emails that say Congratulations you have won the australian lottery. Well at the fed when they get those they credit thier account.
Yes, I would have liked a chance at my own line of questioning. He made his comment, oh so, innocently before lunch. Bizarre.
They are not printing money, they are computer-generating it...I guess they see that as different...
If you could graph a party that you weren't invited to, that is it..
Party at the fed.
lol, good one.. So I phoned, B.B. will only let me have clean up detail.
I don't think that includes all the USD$$ we Benicoptered over for the Eurotrash derivatives, either.
Paul Krugman: "More! More! More! Oh yeah.... and I hate that bitch in Alaska too!"
How dare he refer to the half-term governor that way...
"In October 1923 it was noted in the British Embassy in Berlin that the number of Marks to the Pound equalled the number of yards to the sun"
that be a lot of yards...
Oh, good grief.
I can confirm this. I just got a new unsolicited Visa in the mail from Chase with a large credit limit. I use it and pay it off monthly to cost them money. During the credit crunch I got one high limit card cut to 750 bucks and I have great pay history. Was prob because I paid it off monthly. I'm tempted to max it out and not pay this time around ;)
Here comes the good times once again!
use the card to buy gold and then tell them to fug off, or better yet pay them back in worthless fiat money
They get merchant fees on everything you buy so you're only half right.
But your heart is in the right place.
Actually when you swipe your card and pay them back you are making them exactly the amount that you pay them. They do not loan any money from deposit, they create the credit from your signature.
Mark to SkyPie Bitchez!
Honestly I pictured deflation a bit differently?
Add some V to that M and all of us Zerohedgers will be able to buy the Playboy Mansion (incl. bunnies) for a few double eagles. Too bad nobody else will afford to pay for gas though. Used Porsche 997s will cost a few silver rounds.
Ben says VM=FucQ
As much as it sucks, this isn't really anything new.
If there's a down zag after that last up zig then the shows over folks.
China is at a point where panic selling could start. Euro, well, is trash and India is deflating rapidly. God I love GOLBAL MELTDOWNs!!
TD. Can you post M 2 reguarly I seem to loose track of it
Would be cool to watch a live M2 chart and root for the bull!
that looks like my wang on viagra
Here's a not so shocker shocker out tonight...
State Bankruptcy Option Is Sought, Quietly - NYTimes.com
And here's a rich one by Peter Orzag, now at Citibank, and $3.5 Trillion of taxpayers money later.
FT.com / Comment / Opinion - America must brace itself for turbulence
Once 1 trillion of reserves flood the system this number will double. $1 TRILLION x 1-.10/.10 (.10 reserve ratio) = $9 trillion.
Sure beats working in a chinese sweat shop trying to make that much.
Weekly M2 has grown at a 5.3% SA change in the latest 13 week period (WSJ data).
M1 remains at an excessive 12 percent change (SA annual rate), in the last 6 months (7.8 y-o-y).
But you can't use either of those metrics to measure aggregate monetary purchasing power (i.e., nominal gDp).
If you were a true "FED WATCHER" you would have caught the big new 2 year revision this release.
Actually you mean if we were a true "revision watcher"
This is my favorite chart M1 Money Multiplier ... pushing on a string
don't know why you don't put up the M2 velocity, which is inverse to the chart.
Do you really think the FED can't demand lending from its member banks?
The "The FED can print, but will the money flow into the economy" deflationist rhetoric is ridiculous.
It assumes there is still a barrier between governments, central banks and banks. And it also assumes that consumer credit is still the main driving force behind inflation, which is not the case today (QE and POMO target stocks).
And even if deflation was a possibility, it would mean the death of the US government by starvation, and end in the same result: the US dollar going down in flames.
Not necessary. Any meaningful uptick in velocity, no matter how low the basis is, will lead to light switch hyperinflation.
If you look at the components of M2-you see that it's made up from many things that do not count as money/credit-such as time deposits/savings/retail money funds etc.
I don't believe it's a reliable indicator of money or credit expansion although it consists of that too-
Savings rates are soaring both personal and especially businesses that maxed out credit lines in case of another credit freeze and now they have that cash sitting on their books but are not investing it other than to hedge the interest buy buying and holding T-bills etc.
So if the savings rate is incresing and we know it is-that will have a positive effect on M2-
M1-M2-M3 all contain MZM and so imo are not acurate money measurements
"Savings rates are soaring both personal and especially businesses"
I don't think that's generally true.
We see mortgage defaults increasing. Unless people took cash out of their accounts over time, they have a hard time hiding savings from lenders in a default. Even if they did, this only applies to a small group of people who were smart enough to fuck the banks back.
Retail stats were up and inventory purchases were up also. How can savings rates be up as well?
Incomes declined across the board, unemployment increased and food stamp recipients and other welfare recipients grew in number as well.
I think your argument is off.
So sad. Many sheep will look at this and immediately think they are richer!
Money Multiplier is up huge! That's a good thing, right?
How could anything that multiplies money be a bad thing? Another year or two and everyone in America will be a millionaire. Added benefit: our kids will be better at math.
they're only dollars...
Did you bother to check?
This one shows the rush to draw on credit lines-after the credit freeze ended-
Hussman did a good write up on this-which proved that most of the cash on business balance sheets is actually borrowed money-
my top are , Regg Midd, bk, phx cap r, econp, maybe 2-3 others, besides td , i got a secondary list too lng
Just because 6+ billion people are saying:
doesn't mean you have to!
on Thu, 01/20/2011 - 22:59
You're not serious?
Respectfully. I know an ascending chart when I see one. Can we get some TRADE ideas for Friday? sector trades at least?
Looks a lot like the chart for agricultural commodities to me.
lloks like m3 came out of negative, isnt it time to stop the printing now?
And yet housing still stagnates..Ben scratches head again as the one thing he needs to reflate cannot as I have said for 2 years. Those prices are never coming back because they need to and want to go down.
This doesn't mean anything, without looking at long term trends, the money supply could have increased going into december due to maybe...christmas?
No, I meant what I said. Rates-of-change in monetary flows (our means-of-payment money X's its transactions rate of turnover) is equal to the same computation for nominal gDp, for the same time period.
As any monetarist knows, there is only one valid metric for each variable in the equation of exchange. And that proxy has been significantly revised for past 2 years (& some months - years beyond).
A true fedwatcher, knowing the correct lags, would have been on top of it.
Grow it like there's no tomorrow! Hell, Lord Keynes would agree with me.
Imagine what M3 looks like...
Why does this chart look shockingly similar to the price of gold chart over the same period. Compete with a small dip in june.
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