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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (37766)	11/29/1998 7:19:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 132070

For the last few months it's nearly full speed ahead--a rate that would be more typical of our neighbors to the south. Because of years of careful managment, and because everything is so cheap right now, this might not translate (even at this rate) into really noticeable inflation for two years or so. But if the rest of the world notices and the dollar begins to drop rapidly, it could come somewhat sooner. But of course the Fed knows all this, so I think they will just cut back and let the markets decline sooner than ruin all the work of the last fifteen years. I keep thinking our whole country is somewhat like New York City, which survived under bad management for a long time because the rest of the country couldn't get along without its financial and publishing services.

To: Skeeter Bug who wrote (37766)	11/29/1998 7:26:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 132070

Here's the site for weekly money figures. If you will scroll down you'll see the percentage growth. M1 used to be considered important, but because banks sweep cash into savings deposits every day, it has lost its usefulness as a measure of how much buying power is available. M2 seems best to me because a large part of it is very liquid. It's now going up at a rate of around 12% a year. By the way, though, a story in the WSJ a week or so ago says that the Fed is actually planning to print an extra $50 billion in notes in case people are spooked by Y2K rumors and want their deposits in cash next year at any time. If anything like that happened M1 would take a huge jump.