• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

M2 Update: 12th Consecutive Weekly Increase, The Seasonal Adjustment Inflection Point, And The FDIC's "Free Capital Transfer" Plan Is Working

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Fri, 10/08/2010 - 00:21 | 634443 RockyRacoon
RockyRacoon's picture

We are not sure what the real reason for the surge in "real" money is (and not magically seasonally adjusted money) in Q4 is, when the NSA "deficit" catches up with the SA numbers, but whatever it is: liquidations, pick up of spending into the holidays, etc., we think "this time may be different."

A lot of things are different this time.  "Liquidations" and holiday shopping are some pretty flimsy hooks to hang our economic hats on.  There isn't much in the way of good news -- is there?

Fri, 10/08/2010 - 00:21 | 634444 Gen X Gen Y Hybrid
Gen X Gen Y Hybrid's picture

Duh.  Of course "NSA M2" is going to surge.

M1 Currency finally cracked 900 billion this week (seasonally adjusted).  Over under is 3 weeks on non-seasonally adjusted cracking 900.  

I'm taking the Under.


Fri, 10/08/2010 - 00:27 | 634450 chopper read
chopper read's picture

the increase of insurance on demand deposits from $250,000 to infinity had the exact opposite effect on me.  I feared the worst as it is clear that banks are running out of working capital to service daily outflows (into gold?).  

from $100,000 to $250,000 was a milestone.  anyway, my vote is that this is a short-term blip that caused withdrawals to pause (for a deep breath), but that outflows will resume again soon.


Fri, 10/08/2010 - 00:49 | 634475 Hephasteus
Hephasteus's picture

10 ounces of gold rapes the system of a million dollars. You've never been so powerfully levereaged in your life. Taking 100k out of a 401k is nothing. Buying gold with it you become a monster.

Fri, 10/08/2010 - 09:44 | 634872 chopper read
chopper read's picture

its my protest, my friend.  fuck them.  i've been doing it all night long until six in the morning.  "fractionally reserve lend" my gold in a safety deposit box, banksters.

Fri, 10/08/2010 - 02:22 | 634538 gwar5
gwar5's picture

Good explanation of what's going on with M2, thanks.  Wonder what's going on with M3 these days...

 

Fri, 10/08/2010 - 04:57 | 634580 MarketTruth
MarketTruth's picture

We are not sure what the real reason for the surge in "real" money is...

Ben Shalom Bukkake is warming up the helicopter and coming to a neighborhood near you! Run to Home Depot now before they sell out of rakes! Get yours today! 

 

Fri, 10/08/2010 - 10:18 | 634977 michigan independant
michigan independant's picture

Must punish the fungible Chinese. All, I see you increased the IV drip increased. Central IV lines carry risks. Core Competency's is another issue. The desease has already killed that patient, we need its organs transplanted. Then we unplug it..... That class can be reduced since we have more.

The word comes from Latin fungibilis from fungi, meaning "to perform", related to "function" and "defunct".

The High Priest has waved his hand.....

Fri, 10/08/2010 - 13:19 | 635672 boogey_bank
boogey_bank's picture

I may be wrong but it seems to me that the unlimited fdic insurance on bank accounts will work against average people (a bank crash with a small fdic insured capital would diminish the concentration of wealth in the population) and will raise the probability of an hyperinflationary event.

Fri, 10/08/2010 - 14:10 | 635821 chopper read
chopper read's picture

it works against average people because the bank can take unlimited risk, keeping the profits when it goes well, or go bankrupt when it does not leaving the taxpayer (the 'average' person) to guarantee the deposits.  

privatization of profits, socialization of losses.  thanks, FDIC.

don't forget that your friendly banker can achieve this with FREE money via "fractional reserve lending".

Oh comrad, the joys of centralized money planning. 

 

Wed, 10/27/2010 - 08:42 | 680131 daniel
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