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To: pater tenebrarum who wrote (4062)	5/31/2001 3:57:14 PM
From: re3	Read Replies (1) \| Respond to of 74559

re having a gold standard, a poster that we all (or 99 % of us) respect a lot sent me this private email awhile back on the topic of revisiting the gold standard in some way, shape or form... "Nope. I like money tied hard to real GDP, as that is the real measure of wealth. Unfortunately, every nation finds it easy to cheat on the currency vs. GDP connection while it is much more difficult with a metal standard. And we measure our GDP totally different than does the rest of the world. The good news is that currency traders are generally bright guys, though they haven't seemed to figure out our phony GDP #s yet. The currency vigilantes help keep discipline intact as well as gold would. After all, in the old days, people debased coins and promised gold that didn't exist."

To: pater tenebrarum who wrote (4062)	5/31/2001 4:59:56 PM
From: smolejv@gmx.net	Read Replies (1) \| Respond to of 74559

Heinz - dont plug the bandwidth by copying and pasting, use URL instead: prudentbear.com Also, try to improve on it: nonfed x fin corp fin mtg M3 1990-1997 8,600 3,648 886 3,000 1,700 1,343 1998-2000 6,100 3,600 1,350 3,000 1,700 1,736 annualized 199-1997 1,075 456 111 375 213 168 1998-2000 2,033 1,200 450 1,000 567 579 dif % 189% 263% 406% 267% 267% 345% I guess, Noland could do that himself - but it takes DJ to do it properly; dj

To: pater tenebrarum who wrote (4062)	5/31/2001 5:15:46 PM
From: Ilaine	Read Replies (1) \| Respond to of 74559

The current account balance is not a good measure of US economic strength because it includes not just the balance of trade, but also investment, not just stocks and bonds, but also capital investment, e.g., factories built in the US by Mercedes, Honda, Toyota are treated as a plus in the capital account and a minus in the current account. stls.frb.org No matter how negative you are on the US economy it's very unlikely that these factories are going to be "repatriated." There are undoubtedly more precise numbers to look at to make your point. Noland, whom I think is generally interesting, never alarms me. I have a constitutional tendency to pooh-pooh writers who hyperventilate. "Stunning - unprecedented - staggering" always makes me say "ho-hum." He never gets an "A" in my book because he always tells only part of the story in order to make it more sensational. M3 is defined as follows: >>M3: M2 plus: large denomination ($100,000 or more) time deposits; repurchase agreements issued by depository institutions; Eurodollar deposits, specifically, dollar-denominated deposits due to nonbank U.S. addresses held at foreign offices of U.S. banks worldwide and all banking offices in Canada and the United Kingdom; and institutional money market mutual funds (funds with initial investments of $50,000 or more).<< Why should I be staggered by an increase in large denomination time deposits, repurchase agreements issued by depository institutions, Eurodollar deposits, and institutional money market funds? Institutional money market funds are backed by bonds. Eurodollar deposits appear to be bank deposits in dollar denominated deposits in certain foreign banks. Everything in M3 is outside the reserve requirements of the Federal Reserve, as you are no doubt aware. There are also no reserve requirements for anything in M2, which is defined as >>M2: M1 plus: savings deposits (including money market deposit accounts) and small denomination (less than $100,000) time deposits issued by financial institutions; and shares in retail money market mu-tual funds (funds with initial investments of less than $50,000), net of retirement accounts.<< The things which come within the Federal Reserve's reserve requirements are in M1, but not all of M1. As you probably know but not everyone does. So I don't see how the growth in M3 can be blamed on the Federal Reserve. Other forces are at work here.