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To: russwinter who wrote (9861)	4/16/2003 3:31:10 PM
From: austrieconomist	Read Replies (1) \| Respond to of 39344

" broad measures of excess liquidity" OK. Let's talk M3 if you wish. It has grown at an annualized rate of 4% the last four months. Not exactly a rate that should inflame inflationary expectations. Actually, that is a much lower rate than the 8% rate for MZM.

To: russwinter who wrote (9861)	4/16/2003 3:37:23 PM
From: BSGrinder	Respond to of 39344

Russ, you are right about the broader measures of money. Doug Noland and David Tice over on Prudent Bear have been arguing (and demonstrating) for some time that real credit creation has grown far beyond the universe of the banks and Fed. In particular, they point to Freddie and Fannie as out-of-control creators of credit, which is just another form of money creation. Because of the vastly increased role of non-banks, the broad measures of money are now the more accurate measures of credit creation, although even they don't measure the full amount of credit sloshing around the system, thanks to the willfull negligence of the Fed. /Kit