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Strategies & Market Trends : Mafia Stock Mobsta's Social Club (Bulls Board) -- Ignore unavailable to you. Want to Upgrade?


To: Tadsamillionaire who wrote (3464)4/2/2006 12:55:59 PM
From: Rarebird  Respond to of 6687
 
>>Today the Federal Reserve stops publishing a statistic known as M3 - the best information available on how much new currency is being created and held around the world.<<

I wouldn't worry about that. Foreign buying of US debt paper is faltering. There is no liquidity within the US with which to take up the slack. The Fed is facing a real and approaching situation in which they will be left with no choice but to literally monetize the debt by "buying" it with new issues of "Federal Reserve Notes" (US Dollars). If and when such a situation arises, they don't want any direct evidence of it. To have to "measure" it would stamp the final seal of absurdity (for some) on "...the attainment of both sustainable economic growth and price stability."

But Inflation is great for equities (in an inflationary boom). The message is quite clear here: it's Bullish.