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Non-Tech : Money Supply & The Federal Reserve -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (984)	8/24/2003 5:04:39 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 1379

well, at present somehow the US convinced the market that the USD paper has a lot more value in it than in June, call it manipulation if you will but I speculate that the whole FX volatility was induced purposely by the FED and Treasury trough their various statements since April this year. Not sure what purpose it serves but it is obvious that exchange rates are not fluctuating based on actual flow of funds or fundamentalslike trade deficits,budget deficits or real GDP growth. As to the actual USD float well it increased at a 12% plus rate during this period at a time that GDP barely moved if at all ........ oh yes we know the 2.4% annualized of which 1.7% was for bombs and bullets and the rest pure computing power not computers. BLS statistics make wonders happen. research.stlouisfed.org see the jump from April this year, with M2 not far behind at 11% since April. Year on Year money supply increased by 9% to 10% and is barely reflected in the FX markets. Wonder where the trade deficit gets covered