Asleep on M3 and Barbra Ann?
From Asleep at The Wheel II "a 3460 Billion M3 increase is a 52.4% increase in the previous M3 level under Bush, not 40%"...
..."we can expect M3 growth to equal 100% of todays M3 within a 5 year span or less."
How is that possibile??
M3 on 2005-01-03 9465.0
M3 on 2006-01-02 10231.2
An increase of $ 766.2 Billion or 8% in one year.... 8% seems benign doesn't it??? "M3 of 20,000 Billion in 2010 is not out of the question."
But upon further review, inside the numbers...
M3 on 2005-01-03 9465.0
M3 on 2005-04-04 9592.8 for an increase of 127.8 Billion or 1.3% in Q1
M3 on 2005-07-04 9736.7 for an increase of 143.9 Billion or 1.5% in Q2
M3 on 2005-10-03 9997.4 for an increase of 260.7 Billion or 1.47% in Q3
M3 on 2006-01-02 10231.2 for an increase of 233.8 Billion or 2.3% in Q4
Even the quarterly % increases of 1.5% to 2.3% seem benign. Its the acceleration rate thats alarming,
Q2 to Q1 = 12.5%; Q3 to Q2 = 81.1%; Q4 to Q2 = 62.4%; Q3+Q4 to Q1+Q2 = 82%
The 2nd half 05 Q3 + Q4 acceleration of 494.5 Billion is only 68.1 Billion short of the total M3 increase for 2004 and 185.5 Billion greater than the total M3 increase for 2003.
..."we are going to see hyperinflation of assets that will make our recent asset bubble cycle look tame."
March 06 signifies the end of M3 statistical publishing by the Fed, and we can readily see why.
Sung to the Beach Boys Barbra Ann.... Bomb, Bomb, Bomb, Bomb-Bomb Iran...
March 06 also coincides with the start of the Iranian non dollar oil trading bourse.
Petro transactions create a huge dollar demand: 84 million barrels per day x $70 per barrel x 45 days (contract) = 1/4 trillion dollars per day.
Were Europe and China to use the Iranian bourse, it would weaken the dollar and strengthen the Euro and RMB(yuan) because it doesn't require exchanging currencies.
Will they use the Iranian bourse? We invaded the last country to propose a non dollar oil bourse, Iraq. Lets see what happens next.
March is going to be a very interesting month, indeed.
..."we can expect M3 growth to equal 100% of todays M3 within a 5 year span or less."
How is that possibile??
M3 on 2005-01-03 9465.0
M3 on 2006-01-02 10231.2
An increase of $ 766.2 Billion or 8% in one year.... 8% seems benign doesn't it??? "M3 of 20,000 Billion in 2010 is not out of the question."
But upon further review, inside the numbers...
M3 on 2005-01-03 9465.0
M3 on 2005-04-04 9592.8 for an increase of 127.8 Billion or 1.3% in Q1
M3 on 2005-07-04 9736.7 for an increase of 143.9 Billion or 1.5% in Q2
M3 on 2005-10-03 9997.4 for an increase of 260.7 Billion or 1.47% in Q3
M3 on 2006-01-02 10231.2 for an increase of 233.8 Billion or 2.3% in Q4
Even the quarterly % increases of 1.5% to 2.3% seem benign. Its the acceleration rate thats alarming,
Q2 to Q1 = 12.5%; Q3 to Q2 = 81.1%; Q4 to Q2 = 62.4%; Q3+Q4 to Q1+Q2 = 82%
The 2nd half 05 Q3 + Q4 acceleration of 494.5 Billion is only 68.1 Billion short of the total M3 increase for 2004 and 185.5 Billion greater than the total M3 increase for 2003.
..."we are going to see hyperinflation of assets that will make our recent asset bubble cycle look tame."
March 06 signifies the end of M3 statistical publishing by the Fed, and we can readily see why.
Sung to the Beach Boys Barbra Ann.... Bomb, Bomb, Bomb, Bomb-Bomb Iran...
March 06 also coincides with the start of the Iranian non dollar oil trading bourse.
Petro transactions create a huge dollar demand: 84 million barrels per day x $70 per barrel x 45 days (contract) = 1/4 trillion dollars per day.
Were Europe and China to use the Iranian bourse, it would weaken the dollar and strengthen the Euro and RMB(yuan) because it doesn't require exchanging currencies.
Will they use the Iranian bourse? We invaded the last country to propose a non dollar oil bourse, Iraq. Lets see what happens next.
March is going to be a very interesting month, indeed.
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