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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (24215)1/8/2005 1:03:22 AM
From: Elroy Jetson  Read Replies (1) of 110194
 
That's the bottom line - none of the measures show any indication that the Money Supply is contracting.

As you can see, we can try to make a case that the money supply might be growing more slowly - but it's far from convincing.

If housing collapses then we'll certainly see a big decline in money supply - just as we'll see a definite slowing in the money supply growth if the Fed gets serious about raising interest rates. But so far the Fed is just blowing a bunch of hot air.

The decline in the November Consumer Credit may indeed presage a change in the Money Supply data to be released next month.

If the Fed raised interest rates to 14% tomorrow, yet the money supply remained unchanged, I'm confident I could still borrow money around 5%.
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