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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (64545)7/3/2010 7:40:55 AM
From: carranza2  Read Replies (1) | Respond to of 217619
 
The US money supply data continues to look deflationary

M2 has gone up a bit while MZM is still trending down.

MZM is moolah of zero maturity, essentially cash that is in money market funds, your wallet, your bank accounts, etc. M2 is a bit more difficult to understand - for me - but is basically the money supply less bank reserves.

Of course, neither measure velocity, a critical aspect of things if you measure inflation by rising prices, which is controversial because inflation according to the smart guys is a monetary phenomenon.

Point being, growth in M2 means we may be seeing the first green shoot of inflation.

With the Fed no longer stimulating, I don't know how M2 could have risen, but it did.



To: TobagoJack who wrote (64545)7/5/2010 10:50:49 AM
From: Cogito Ergo Sum  Respond to of 217619
 
GREED & fear remains of the view that the US savings rate will rise on a secular basis based on forced deleveraging and increased risk aversion, as ageing baby boomers focus on their need for income. This is why there is huge potential for households to increase their ownership of longer term Treasury bonds.

Personally I believe that is possibly the most salient part of the post....