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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (2791)	6/27/2003 7:34:43 PM
From: GraceZ	Read Replies (2) \| Respond to of 4907

Concerning "it isn't FED who is creating the low rates". M2 growth since Jan = 580 -> 605, (605 - 580)/580 = 4.3% Monetary Base since Jan = 700 -> 720, (720 - 700)/700 = 2.9% The $20 billion came from $12B permanent and $8B RP free float. Currency since Jan 628 -> 648 = $20B What do you know? The base is going into the public's currency preference. That means FED is only supporting transaction balances. Remember the example about why the money supply has to grow? Isn't it curious no one attacked it? It only represents the refuting argument why 0 money growth creates problems. FED erring on the side of restraint or better put, rates falling away from target: mywebpages.comcast.net