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

To: ahhaha who wrote (24239)	12/31/2013 11:21:58 AM
From: ahhaha	Read Replies (1) \| Respond to of 24758

A picture of ah stretching out his hand to a drowning dvdw... What is M2? If one wikis M2 , one gets some abstract definition right out of academia, but the profs don't know what they're saying. They can't restate what M2 is without reference to other abstractions. So, I'll do it here. M2 is the form of money going in and out of an ATM. People deposit checks, usually from work, and withdraw currency at the ATM. The net of these transactions causes M2 to change. This represents most of M2. At another level or from a different perspective businesses pay their employees, buy material, from their sale of product. Sometimes in order to do this and to make more money business borrows from a bank where in contrast, above, they were financing their activities with cash, that is, with bank deposits. When business borrows the loan adds to M2 because business spends the borrowing and someone else ends up making a deposit at an ATM or equivalent received from the spending. Very little business activity shows as currency. Mostly, it's check or electronic transfer. In the popular language M2 is money supply. Media claims FED is adding to money supply and the public believes it when actually FED adds only to bank reserves which NEVER appear in money supply. Never. What? Reserves are, reserved. They don't get out and about. They sit and secure loans when, and, and if, banks can't make loans on their internal accumulations of deposits because they've used up their on hand reserves making previous loans. We are nowhere near that condition. An economy is considered in some degree of depression when it is in that condition. So how could there be an ok economy that's in some kind of a depression? People have adapted to no wealth and accepted poverty. Some do well and most don't. The 'crats call this "income inequality" when it is them who maintain the depression.