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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Jon Koplik who wrote (7644)	3/8/2007 7:00:19 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

Jon my initial take is that M1 is too narrow in terms of it's components to broadly extrapolate too much. I believe it's the physical currency, the Central Bank holdings and then the demand accounts (checking, and current accounts) and Hawk I am going to try to post some thoughts on the carry trade!!!! ------------------------------ en.wikipedia.org Because (in principle) money is anything that can be used in settlement of a debt, there are varying measures of money supply. The narrowest (i.e., most restrictive) measures count only those forms of money available for immediate transactions, while broader measures include money held as a store of value [edit] United States U.S. Money Supply from 1959-2006The most common measures are named M0 (narrowest), M1, M2, and M3. In the United States they are defined by the Federal Reserve as follows: M0: The total of all physical currency, plus accounts at the central bank which can be exchanged for physical currency. M1: M0 + the amount in demand accounts ("checking" or "current" accounts). M2: M1 + most savings accounts, money market accounts, and certificate of deposit accounts (CDs) of under $100,000. M3: M2 + all other CDs, deposits of eurodollars and repurchase agreements. As of March 23, 2006, information regarding M3 will no longer be published by the Federal Reserve. The other three money supply measures will continue to be provided in detail. On March 7th, 2006, Congressman Ron Paul introduced H.R. 4892 in an effort to reverse this change.[2]

To: Jon Koplik who wrote (7644)	3/9/2007 12:52:49 AM
From: Hawkmoon	Respond to of 33421

Anyone want to discuss if shrinking M1 actually means anything (?) Well, CNBC reported that they had record inflows of funds back into US markets, as money seeks a safe haven from emerging markets and foreign deposits outside of the US are part of M1. But I don't know if that's the reason for M1 shrinking.. Hawk

To: Jon Koplik who wrote (7644)	3/9/2007 1:40:03 PM
From: Jon Koplik	Respond to of 33421

ECRI Feb US Inflation Gauge Eases Again ........................................... Fri, Mar 9 2007, 14:40 GMT ECRI Feb US Inflation Gauge Eases Again NEW YORK (Dow Jones)--An index designed to anticipate cyclical turning points in inflation decreased in February. At the same time, a smoothed version of the annualized growth rate slipped further into negative territory in February to a negative reading of 3.3% from an unrevised negative reading of 2.8% in January. The Economic Cycle Research Institute said Friday that its Future Inflation Gauge decreased to 118.7 in February from an downward-revised 119.4 (previously reported at 119.5) in January. The gauge was pulled down in February mainly by disinflationary moves in measures of jobs and vendor performance partly offset by inflationary moves in a measure of commodity prices and interest rates. "The U.S. future inflation gauge remains in a cyclical downswing that began in the fall of 2005," said Lakshman Achuthan, managing director at ECRI. "Thus, U.S. inflation pressures continue to retreat." Weekly updates of the index are released only to subscribers. -By John McAuley, Dow Jones Newswires; 201-938-4425; john.mcauley@dowjones.com (END) Dow Jones Newswires March 09, 2007 09:40 ET (14:40 GMT) Copyright 2007 Dow Jones & Company, Inc.