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To: GST who wrote (103647)5/19/2000 2:15:00 PM
From: fut_trade  Read Replies (1) | Respond to of 164684
 
I was just looking at M3. Over the past year, the Fed has increased the money supply about 41 Billion per month, compared with a trade deficit of 30 Billion per month. It seems that M3 has stopped growing the last few weeks (although it's not shrinking at this point).

Assuming that the Fed keeps M3 at it's current level, and given the increasing trade deficit, I suppose these trends translate into a sharp decrease in liquidity in the near future, which should continue to pressure the markets.