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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (16411)	11/21/2004 12:14:36 AM
From: Taikun	Read Replies (3) \| Respond to of 116555

Elroy: Go to www.gloomboomdoom.com click on 'Market Comments' on the left "Concerning the US dollar, much further weakness would somewhat surprise me because, as can be seen from figure 2, US money supply has not been growing much since the month of May of this year." End of 3rd paragraph, before the graph Figure 2, from the St. Louis Fed. I notice one of our fellow SI members solved the mystery: the data is a form of money supply data, and this (MZM) is the data series faber chose: "Of the four most widely used measures, M1, M2, M3 and MZM, only MZM has dropped and then only in the last month or so. Mostly the growth of these various measures has slowed but they are all still positive on an annual basis. They've slowed to just above the rate of GDP growth. MZM is flat while M2 is growing because of the difference between the two measures. What is adding to M2 is the recent uptick in C&I lending which doesn't show up in MZM because the money from the loans, which is used for things like plant equipment and inventory, doesn't necessarily show up in a "liquid" measure like MZM." Message 20786618 David