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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bill Murphy who wrote (21887)	10/17/1998 6:43:00 PM
From: PaulM	Read Replies (1) \| Respond to of 116762

Latest Money Supply Annual Rate, June - Sep: M2 9.6%, M3 9.5% bog.frb.fed.us Are the M2, M3 figures a misread? M2>M3?? What is interesting is M2/M3 and the decrease in M1. It is my understanding that during deflation the proportion of the money supply held as M1 rises (people want to hold hard currency, the most liquid form of wealth, during a liquidity crisis). As best as I can tell, the figures look far from "deflationary." Perhaps the "liquidity crisis" is limited to select financial institutions whose investment philosophy was driven by the expectation of endless bailouts. In that case, what we're facing is not a "liquidity crisis" but rather years of malinvestment on a grand scale. Which will have to paid for, of course, by tax payers, savers and fixed income recipients. It's never looked better for gold. Regards.