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This is just pure paranoid hogwash.
The central Bank focuses on keeping inflation in check by controlling rates and thus indirectly controlling money supply. The fact that the M3 is growing is of no consequence whatsoever if not accompanied by inflation. Not publishing the M3 is hardly a big attempt to hide things or to "monatize the debt".
Bush's administration has is such an easy target due to their cut taxes but increase spending policies that it's amusing to see people making up paranoid and silly charges.
From Barron's Market Laboratory:
November 12, 2004 M2: 6365.4
M3: 9303.0
November 11, 2005 M2: 6631.9
M3: 10075.4
Percentage increase M2: 4.2%
M3: 8.3%
The enlightening book “The Sorrows of Empire” by Chalmers Johnson examines empires from the past, identifies major characteristics (seven, I believe) and measures the present United States by them. Among these benchmarks are:
Perpetual War
Erosion of individual rights
Lying to the citizens
Debasement of the currency (all became bankrupt)
I am saddened but no longer shocked by what I see in the country I fought for. As the world’s wealth continues to be concentrated in fewer hands, unbridled greed in the guise of capitalism will continue to displace democracy, the power of sovereign governments, environmental sanity, and human rights on our planet.
Fuel for the fire -
From http://www.siliconinvestor.com/
s...subjectid=54034
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No M3 means they will monitize the debt.
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Monetizing the debt cannot be hidden in M3, it would show up all the way down in M0. M3 is a pretty useless number, the Fed can't do much to influence it anyway, so its little more than busywork.
They've got more important things to deal with.
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Utter nonsense. When the Fed bails Fannie Mae out with a $1 trillion interest rate swap, that will show up in M3 but not M2, M1 or MZM.
All of the container loads of new $100 bills the U.S. is spending in Iraq will show up in M3 as soon as they are deposited in a foreign bank - but will not show up in MZM, M1, or M2 unless the money comes back to our domestic economy. Perhaps you should wonder why even U.S. based contractors are being paid with suitcases of $100 bills, when they would prefer the payments be made by direct deposit to their U.S. account.
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new $100 bills
That's M0.
You're completely out to lunch on this.
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Let's review. New $100 bills inside the United States are counted in MZM.
New $100 bills outside of the United States in Iraq are not counted - until they are deposited into a foreign bank, then they become M3. If the money is repatriated, they become MZM as you assume.
There is a reason why the U.S. military is paying contractors, even U.S. contractors, in Iraq with suitcases of $100 bills rather than direct deposits to their U.S. accounts as they wish. Until you can explain why this is happening, you don't understand how our money system works.
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New $100 bills outside of the United States in Iraq are not counted...
There are no bills printed outside the United States.
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So in other words, you don't understand and can't explain it.
You incorrectly assume that currency gets included in the MZM total as soon as its printed - it does not.
In other words, you believe all of the reserve cash in Federal Reserve and Treasury vaults is part of MZM -- but this is not true until it is shipped to a bank.
Currency is only included in money supply total when it enters circulation. This particular currency is entering circulation in Iraq. That is not even money until it becomes M3 in a foreign bank. Then becomes MZM when repatriated back to the United States.
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There's nothing to explain. No bills are printed in Iraq: never were, never will be. If you have a photo of an Iraqi branch of the US Mint, feel free to post it, otherwise you're just blowing smoke.
The reason cash is preferred to direct deposit for many transactions is for the simple fact that the country is a smoldering hole and the banking system is in a state of complete disrepair and had minimal means of dealing with the outside world for the past 3 decades. This should be obvious to anyone who has seen a newscast in the past 2 years. If you missed those, then I imagine you also missed the images of C-130s flying in with pallet-loads of US bills. Those bills were counted in the aggregates the moment they got shipped out the Mint's warehouse.
Large transactions are done the way they have been done for decades: electronically, outside the country.
Come back if you ever find some evidence. Until then, this is the same kind of bullcrap theory as the JPM gold carry trade BS of a couple years back.
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Do some more study and you will discover that currency is not money as soon as it is printed.
Reserve currency in Treasury and Federal Reserve vaults is not money either.
Currency is only counted as money when it enters circulation -- normally when it gets shipped to a bank, but there are exceptions, like Iraq.
New U.S. currency shipped from the Fed to the Central Bank of Japan is counted in M3, not MZM. You incorrectly assume this would be MZM.
Your incorrect assumptions are leading you to an endless list of incorrect conclusions.
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Ok, mate. It's not purpose in life to go around deflating other people's fantasies.
Enjoy!
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Once you learn more about how and when currency is counted as part of the money supply, a great number of "mysterious" things will become clear to you.
They're not mysterious, its just a magic trick - simple misdirection.
Currency is not money as soon as it is printed. Currency is money only when it enters circulation.
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Sure, thanks for the tips. EOM.
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Please instruct us on your alternate reality where currency becomes money before it enters circulation.
In your fantasy, does currency become money:
as soon as the ink gets pressed onto the paper;
or only after the ink is dry;
or only after the sheet is cut into individual bills;
or only after the money leaves the mint?
Here's a stumper for you. You can purchase sheets of $1 bills which are not yet cut into individual bills - yet the bills in this uncut sheet are included in MZM. How is that possible?
Or maybe, just maybe, currency only become money once it enters circulation. Ding! Ding! Ding! Correct answer
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How many dead horses do you beat at one time?
Enjoy!
Your premise is false, discontinuing M3 has no effect on money supply transparency. The M3 data is completely redundant because all of the data is released in the M2 report already.
Have you read Creature from Jekyll Island by any chance?
http://www.realityzone.com/creature.html
SAM: see the update in the post. Q3 GDP was 3.8%, M3 growth was 7.6% at that point of time. of course there we can add more stuff for dicussions when talking about core inflation, the CPI or "necessinflation" (everything we buy gets more expensive but inflation stays low.)
but M3 ought to be at least: real GDP increase+inflation...so 7% is not like twice the nominial gdp increase..can you shed some light on that..
What a bunch of crooks and criminals ? The US government is as bad as the communists in USSR under Stalin. Well almost. Stalin used to send to concentration camps the statisticians that did not produce the good numbers. The US government does'nt like a certain statistic. Well it removes it and kills the data. As usual the M3 elimination is to hide again the fact that money creation is out of control and that inflation is exploding everywhere.
Ts
Words are easy,
but I prefer hard data.
D
Talk is cheap
But I prefer to be shown the money
Work on the real deal (with real hard facts) and know how you are going to get paid
http://www.shortorlong.com/
understanding markets
a speculator WAITS Till he KNOWS he is right, and a gambler guesses
one must have a plan with fixed rules & patience, & DISCIPLINE, to be able to implement ones plan
almost everybody knows next to nothing about the mysteries of money
so what to do? Learn, what not to do, then work on, what you need to do
From:
Duncan Robertson
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