M3 Money Supply data no longer reported, big consequences....

[Blackhatjack]

As of March 23, 2006, the Bush Administration stopped reporting M-3 money supply data,(the amount of cash the Federal Reserve Bank Cartel prints). It is now impossible for American and foreign investors to know how much currency is in circulation, and therefore no way to determine how much a "dollar" is truly worth.

This is big. We are asking the rest of the world to just trust us and accept our "paper" for what we say it should be worth.

This has spooked the international investors, and combined with huge trade deficits and national debt, the dollar is going to take a big downturn, drive investors out of the dollar into Euros and precious metals.

Afraid we have not seen anything yet when it comes to the economy. Gas prices may pale in comparison.

[Canuckistanian]

1. I've heard many say

That the M3 report cancellation is no big deal.

Maybe it isn't for American investors, but I think it's a big deal for foreign investors.

Am I right?

[The Magistrate]

2. It Is A Matter Of No Importance, Sir

The M3 number represents the least tangible and least liqid forms of "money", and all information conveyed by it is easily assembeld by professionals from other items routinely reported still. There are a few persons, most interested in promoting panic to profit by the reactions of people with little financial knowledge, who are trying to promote this as some major cause for alarm, but it nothing of any signifigance.

[Blackhatjack]

3. Chinese & Japanese heavy in US dollars, do not have access...

The Chinese are not only converting their US dollars into Euros, but they raised their interest rates to 5.85% drawing other foreign investment dollars away from US.

This cannot be good for an economy spending $6bil per month in Iraq, a huge national debt, and huge trade imbalance.

US Economy is at best Vulnerable to manipulation, and hiding information about the money supply cannot help.

[The Magistrate]

11. Of Course They Have Access To Routine Reports, Sir

Do you imagine Chinese investors fools who purchase pigs in pokes?

Reports of Chinese onvestment in Euros are somewhat overstated, and are in any case a normal sort of hedging operation, since China exports a good deal to Europe as well as to the United States.

Ceasing the report of the M3 category is of no signifigance; it is not an important or useful measure, and has been superfluous for many years.

[mike_c]

5. thank you M....

I've wondered about this, but don't have the experience or expertise to make an intelligent assessement.

[ConsAreLiars]

9. If it means nothing, then why do you think they decided to stop

reporting it? There is, for sure, a lot of "noise" in the data we can access, but why was this particular bit of "noise," if that is what it is, chosen to be suppressed by a regime that is notorious for suppressing any info that might reveal anything that informs the public? It seems to me that if it were meaningless they would not have bothered.

(edit out stray keypuch)

[Oversea Visitor]

4. It is ok

We know a fuber when we see one.
What you expect from a monkey king

[Neil Lisst]

6. Some say it doesn't matter ...

... but don't believe that. It's like a religion. Some belong to a religion of economics, and if the Fed says it, it must be true. Mainly it's repeated by Fed followers and school teachers.

Gold is at a record for a reason, and the administration's ongoing economic shell & pea game with numbers has made international investors nervous.

Oil, gas, and gold are all going to keep going up.

[TreasonousBastard]

7. Whoa! Allow me to explain M3...

First, it is M0 that is the amount of currency in circulation. M1 and M2 are M0 plus bank accounts.

M3 is M0+M1+M2 + the amount of Eurodollars and repurchase agreements.

"Eurodollars" is the generic term for US money outside of US borders. It's everything from a tourist dropping a buck at a Tijuana taco stand to the check written for imported Levis or Mercedes'.

Repurchase agreements are simply short-term loans- similar to any other Treasury bonds but with an agreed-upon interest rate, not an auctioned one. In this case, they are us borrowing our foreign-owned dollars back.

I have no idea why they stopped reporting this, but it is a further reflection on just how badly our trade balance is going. It is also an interesting to know just how much of "our money" is held in foreign hands.

A key question here is not just in the growth of the money supply, but WHERE it is growing. If M3 is growing faster than M2, just what is out of balance and what damage could it cause?

[KAT119]

8. Read when * TOOK office all of his assets were in oil & gold....n/t

[newyawker99]

10. Hi blackhatjack!!

Welcome to DU!! :toast: