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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (4856)	5/7/1998 2:10:00 AM
From: Gersh Avery	Respond to of 42834

MrGreenJeans Re:"M3 has been growing at a significant rate" So where does the Fed release the funds to grow the M3? Is it not by way of this "fine tuning?" What is the route that the funds get into the general population? Is it not through the market? The reason that I pointed the draining of liquidity, is that I believe that the Fed has now reversed the trend of increasing the M3 supply and is now in the process of reducing it. I believe that the main reason for this is that the dollar has been declining in value in comparison to other currencies. Currencies have been exchanged .. therefor there would be excess dollars in the market place. To avoid the resulting inflation, the Fed pulls the excess money out of the market. The Feds main concern, for a long time, has been inflation .. Why? I believe that they realize the long term impact of the M3 situation. I think that, at this point in time, they wish to reduce the excess M3 without causing a crash. Yes .. fine tuning indeed. Gersh