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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (18633)	7/13/2011 10:13:32 AM
From: ahhaha	Respond to of 24758

To heap on the boredom let me add that in the '50s and '60s money velocity was all the rage. Various economists pointed out that it was meaningless, but that didn't stop the adoration of devoted fans whose cadres reached all the way up into the FED. In the early '70s it was noticed that velocity had become overtly ambiguous. Not to worry. Just redefine it with the right money supply. Didn't work. As money became more and more diversified velocity fell into disrepute. Not to worry. Just redefine it in terms of the coin biter's all powerful god, M3. We got a solution now(Not). Then in 2005 FED dumped M3. It must be a conspiracy, said the biters. M3 velocity was more meaningless than Mx velocity, if that's meaningful. To digress, what does M3 bring to the table that M2 doesn't? Primarily savings. The biters consider growth in savings as proof that there's a lot more money out there than anyone believes, and it's just waiting to come flooding out into final demand, driving up prices, through the roof, all of it. To be precise M3 = M2 + savings deposits + individual time deposits < 100Gs, MMFs + large time deposits + institutional MMFs + RPs in Temporary. It's this last category, RPs, which has the biters up in arms. RPs, or better put, the RP free float is the material culprit behind the 2008 financial crisis. This has been discussed here in great detail over the years. However, its impact on M3 is miniscule. M3 isn't of much use, if any. When Temporary is open it is worthwhile to monitor the scale of the RP free float though. Not that the biters understand a word of the above paragraph. They aren't alone. None, none, of the academics do either. Nowhere can one find a definition for "RP free float", for example, yet it's the most important of all money concepts when Temporary is open. What do you expect out of illiterates and fools?