In memory of M3

Discussion in 'Economics' started by Pekelo, Mar 28, 2006.

  1. Pekelo


    We will never know from now on, just how much money the government prints. But who cares, as long as you can buy uncut dollars from here:

    Seriously, who dreamt up that title for an official, government website? Anyway, here is the official info from the Federal Reserve Statistical Release:

    Discontinuance of M3:

    On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.

    Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).

    M3 does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary policy process for many years. Consequently, the Board judged that the costs of collecting the underlying data and publishing M3 outweigh the benefits.
  2. lol, moneyfactory........ hahah.

    now will gold and other commodities be extra important to study inflation?

    i also think the next decade will create more informational imbalances... since everything from government m3 stats to CIA historical documents are closing shop... probably a good thing for traders.
  3. who would pay $ 250 for sixteen $10 bills???
  4. meskhot


    There is an excellent article in this weeks "The Economist" titled "Running on M3"...
  5. Amnesiac


    Collectors would. Look on ebay how much people bid for uncut bills (of all currencies).
  6. Pekelo


    Also I would like to point out, that uncut dollars are perfect for wallpapering your trading room. So you can smell what you are aiming for... :)
  7. A rogue Federal Reserve Bank?

    What's a little worrisome is the mortgage-backed component of open market operations. They're not exactly backed by the full faith and credit of the US govt.

    Oh that's right Fannie & Freddie are quasi-govt agencies. All those tranches of orginations from over-zealous lenders, a good proportion ARM's, and funded as a reflection of real estate appraisals.
  8. I'm just beginning to discover the level of false economic reporting done in the last few years by the FED. John Williams at shadowstats is pretty interesting and covers various devices, geometric weighting in the CPI, hedonic adjustments, etc

    i'm also reading recently about how gold reserves are falsely reported by the FED with gold-lending and the enormous gold carry trade. the fed is actually breaking the LAW and engaged in illegal activity today

    williams calculates the net change since the clinton administration in underreporting inflation as a 2.7% difference between reported CPI and real inflation
    #10     Mar 28, 2006