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


To: Archie Meeties who wrote (90829)1/26/2008 5:15:45 PM
From: sea_biscuit  Read Replies (2) | Respond to of 110194
 
M1 is not relevant in this context. As far as inflation is concerned, M3 is the most important number. The following article explains M1, M2, M3, MZM, Monetary base and the significance and relevance of each.

financialsense.com



To: Archie Meeties who wrote (90829)1/26/2008 8:04:58 PM
From: 10K a day  Respond to of 110194
 
> "that the Fed can print in TRILLIONS" <<

They don't really do that. The Fed prints a buck to lend to a bank. IN TURN the Bank creates 10 (borrowed) dollars from thin air from that one dollar borrowed (from the fed). So the BANKS essentially create (M3) with the stroke of a pen. The 10 to 1 Ponzi principle. Kids and immigrants don't seem to have a problem with this principle.