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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (44864)	11/6/2005 1:42:00 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

MZM is a fatally flawed estimate of money as is M2 IMO. M1 is reasonably accurate but leaves out some key components. Here is M1. economagic.com M2 does not seem to be growing at a steep rate. economagic.com M2 in real terms (adjusted for inflation) as Kasriel likes to do rise in M2 is not threatening at all. This is from August. Not sure what it looks like now. northerntrust.com Here is a good article debunking MZM by Frank Shostak gold-eagle.com Real Money (Money AMS) is actually falling right now. Real money has actually predicted recessions and slowdowns and expansion upticks far better than any of the M series of flawed definitions I also suggest reading this article by Shostak THE MYSTERY OF THE MONEY SUPPLY DEFINITION mises.org Incorporating all the above arguments, the money supply is defined as follows: Cash+demand deposits with commercial banks and thrift institutions+government deposits with banks and the central bank. Unfortunately an article with the same title gives a different definition of money The Mystery of the Money Supply by Frank Shostak mises.org Following Mises and Rothbard, the money supply should be defined as: Cash+demand deposits with commercial banks and thrift institutions+saving deposits+government deposits with banks and the central bank. I am still struggling as to which of those definitions is correct but there is no doubt in my mind that the M series definitions are hopelessly flawed. I hope you have time to read those and if so let me know what you think. Mish