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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: GraceZ who wrote (2801)6/28/2003 2:12:09 AM
From: LLCF  Read Replies (1) of 4907
 
<M2 growth since Jan = 580 -> 605, (605 - 580)/580 = 4.3%>

According to Grant's:

Last 3 months M2 Growth= 7.1%
Last 6 months M2 Growth= 6.8%

Lower than your annualized 8.6%

<FED erring on the side of restraint or better put, rates falling away from target:>

No, see previous post.

<What do you know? The base is going into the public's currency preference. That means FED is only supporting transaction balances. Remember the example about why the money supply has to grow? Isn't it curious no one attacked it? It only represents the refuting argument why 0 money growth creates problems.>

What does all that mean? Is it relevant to the topic at hand which seems to be is the fed leading or following?

DAK
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