Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (98717)	5/1/2001 2:44:44 PM
From: pater tenebrarum	Read Replies (5) \| Respond to of 436258

annualized growth of M3 in the US has been nearly 21% over the past quarter. every week brings a new profligacy record w.r.t. money supply expansion. contrary to the Fed, the ECB has a more narrowly defined mandate...and that has led to it adopting both inflation and money supply growth targets. the upper end of the M3 growth target range is 4.5%, thus 5% growth elicits concern. my bet is that the traditional relationship between money printing and the internal and external value of the currency will come back with a vengeance, when least expected. everybody has been lulled into ignoring these absurd money supply growth rates, they are however a strong sign of how the Fed is in a constant ad hoc policy panic mode, out of fear that the leverage pyramid may collapse. however, creating even more debt is not a solution. it only delays the inevitable reconciliation, and will make it much worse than it needed to be.