russell is disturbed
April 29, 2005 -- News: US Gross Domestic Product grew
at a "disappointing" 3.1 percent rate during the first
quarter, slowest since 2003. Inflation quickened, and
inventories headed higher as consumers and businesses
cut back on spending.
Russell Comment -- Nevertheless, the Fed stands ready
to use "unconventional" methods, if necessary, to ward
off the dreaded forces of deflation. The Fed's ammo
can include buying bonds, futures, shares of stocks,
mortgages, land, homes -- or whatever is needed.
How about this for starters? For the week ended April
18, M-3, the broad money supply increased by a
staggering $53.6 billion! I've never seen a figure
like this before. Am I the only one reporting on the
money supply? Hello out there, hey, they're flooding
the system with liquidity -- again. |
