What do you know about the Fed Res and M3 Reporting?

[iconoclastNYC]

A right wing friend of mine is telling me to look into this.

[AndyA]

1. M3 Reporting ending in March

I read it had something to do with the eventual collapse of the dollar against the Euro, and that this would be exacerbated by Iraq, when it begins selling oil for Euros instead of dollars. Which, coincidentally, is the basis for the U.S. attention on Iraq at this time.

[hang a left]

2. The FR will cease reporting the M3 on March 15, 2006.

From what I have read it will help Bernarke hide massive inflation and the flooding of the planet with dollars.

[StClone]

6. The Federal Reserve is Privately owned

Many articles on it and Wiki too.
http://www.wealth4freedom.com/truth/3/powerfortress.htm

[Strelnikov_]

8. Helicopter Ben Wouldn't Do That Now, Would He? n/t

[ProfessorGAC]

10. Flooding Dollars Would Influence M2 and M1

So, that isn't the reason. In fact, the most important reason for dropping it is that it always was an almost useless measurement that was indicative of nothing. In fact, one of the U.S. Council of Economics awards went to an acquaitance of mine in 2002 for establishing a complete mathematical inability to connect M3 to any other econometric parameter, other than, obviously M1 & M2.
The Professor

[threadkillaz]

3. From Wiki,

http://en.wikipedia.org/wiki/Petroeuro


The United States Federal Reserve (the Fed) has announced that it will stop reporting the M3 money supply data of the US dollar on March 23, 2006. This has started some speculation in the investment and banking community on the possible instability in the dollar system that the Fed is trying to hide. (The Federal Reserve is a system of eight to twelve regional reserve banks, owned by its commercial member banks and supervised by the Federal Reserve Board.)


Peak Oil Message Board on M3 Subject
http://www.peakoil.com/fortopic14770-0-asc-0.html

[FloridaPat]

4. Bernanke said no one reads the M3 reports and it's a burdon on the banks.

The M3 is up 40% under * in the last 5 years.

[StClone]

5. What is M3?

M3 or M-3 may be:

* Globular Cluster M3, a Messier object in the constellation Canes Venatici
* M3 motorway, a highway in England
* M3 motorway (Northern Ireland), a spur of the M2 motorway (Northern Ireland)
* M3 motorway (Republic of Ireland), a proposed upgrade to part of the N3 road
* M3 motorway (Hungary)
* Michigan State Highway 3
* M3 Grease Gun, a U.S. submachinegun
* M3 Lee, a U.S. Army tank of World War II. When built in Britain, it was named M3 Grant
* M3 Bradley, the cavalry fighting vehicle version of the U.S. M2 Bradley
* BMW M3 automobile
* major third in music
* money supply, M3 refers to the amount of cash in circulation, the amount in checking or demand deposit accounts plus savings accounts, money market accounts, CDs and foreign-currency holdings.
* M3 was the code name for a special U.S. military mission on Roosevelt Roads Naval Station, in Ceiba, Puerto Rico
* M3 is an obsolete BBC technical standard for calibrating stereo peak programme meters
* GBA Movie Player M3 adapter

[justabob]

7. Money supply, in this case

* money supply, M3 refers to the amount of cash in circulation, the amount in checking or demand deposit accounts plus savings accounts, money market accounts, CDs and foreign-currency holdings.

[StClone]

11. Thanks

[Odin2005]

9. Helicopter ben's going to get the printing presses going...

...to "fix" the debt problem. :scared:

[Strelnikov_]

12. Ron Paul - End Of Dollar Hegemony

Wraps things together fairly well. Have to keep oil trading in dollars so there is a place to launder all the newly minted money.

Lube them presses, boys, we got an economy to flood with dollars.


http://www.energybulletin.net/12987.html

Realizing the world was embarking on something new and mind boggling, elite money managers, with especially strong support from U.S. authorities, struck an agreement with OPEC to price oil in U.S. dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence 'backed' the dollar with oil. In return, the U.S. promised to protect the various oil-rich kingdoms in the Persian Gulf against threat of invasion or domestic coup. This arrangement helped ignite the radical Islamic movement among those who resented our influence in the region. The arrangement gave the dollar artificial strength, with tremendous financial benefits for the United States. It allowed us to export our monetary inflation by buying oil and other goods at a great discount as dollar influence flourished.


. . .

The agreement with OPEC in the 1970s to price oil in dollars has provided tremendous artificial strength to the dollar as the preeminent reserve currency. This has created a universal demand for the dollar, and soaks up the huge number of new dollars generated each year. Last year alone M3 increased over $700 billion. The artificial demand for our dollar, along with our military might, places us in the unique position to 'rule' the world without productive work or savings, and without limits on consumer spending or deficits. The problem is, it can’t last.

. . .

Most importantly, the dollar/oil relationship has to be maintained to keep the dollar as a preeminent currency. Any attack on this relationship will be forcefully challenged - as it already has been. In November 2000 Saddam Hussein demanded Euros for his oil. His arrogance was a threat to the dollar; his lack of any military might was never a threat. At the first cabinet meeting with the new administration in 2001, as reported by Treasury Secretary Paul O’Neill, the major topic was how we would get rid of Saddam Hussein-- though there was no evidence whatsoever he posed a threat to us. This deep concern for Saddam Hussein surprised and shocked O’Neill.

. . .

But the truth is that paying the bills for this aggressive intervention is impossible the old fashioned way, with more taxes, more savings, and more production by the American people. Much of the expense of the Persian Gulf War in 1991 was shouldered by many of our willing allies. That’s not so today. Now, more than ever, the dollar hegemony-- it’s dominance as the world reserve currency-- is required to finance our huge war expenditures. This $2 trillion never-ending war must be paid for, one way or another. Dollar hegemony provides the vehicle to do just that.

. . .

Our whole economic system depends on continuing the current monetary arrangement, which means recycling the dollar is crucial. Currently, we borrow over $700 billion every year from our gracious benefactors, who work hard and take our paper for their goods. Then we borrow all the money we need to secure the empire (DOD budget $450 billion) plus more. The military might we enjoy becomes the 'backing' of our currency. There are no other countries that can challenge our military superiority, and therefore they have little choice but to accept the dollars we declare are today’s 'gold'. This is why countries that challenge the system-- like Iraq, Iran and Venezuela-- become targets of our plans for regime change.

. . .

Concern for pricing oil only in dollars helps explain our willingness to drop everything and teach Saddam Hussein a lesson for his defiance in demanding Euros for oil. And once again there’s this urgent call for sanctions and threats of force against Iran at the precise time Iran is opening a new oil exchange with all transactions in Euros. Using force to compel people to accept money without real value can only work in the short run. It ultimately leads to economic dislocation, both domestic and international, and always ends with a price to be paid.

[Bushwick Bill]

13. What the Fed Is Hiding.

December 23, 2005

What's the Fed Up To With the Money Supply?
by Robert McHugh


Over the past two days, December 21st - when our first Hindenburg Omen (of whatever cluster is coming) - and Thursday December 22nd, the Federal Reserve has conducted one of the largest two-day Repo injections of money into the system since back in September 2001. On Wednesday they added $18.0 billion in reserves and on Thursday they added another $20.0 billion. Is this a coincidence, coming right as we get another Hindenburg Omen? Probably not. Is something high-risk going on behind the scenes here? Let's review some facts at the Fed. On November 10th, 2005, shortly after appointing Bernanke to replace Greenbackspan, the Fed mysteriously announced with little comment and no palatable justification that they will hide M-3 effective March 2006. M-3 has been the main staple of money supply measurement and transparent disclosure since the Fed was founded back in 1913. It is the key monetary aggregate that includes Fed Repo transactions, that mechanism whereby the Fed increases reserves. The date when M-3 will start being hidden also happens to be the exact month that Iran will declare economic war against the U.S. Dollar by trading its oil in Petro-Euros on its new bourse. But there is more. The Federal Reserve currently has three vacancies within the 19 top Regional Bank and Board of Governor spots. Why? Part of ongoing wholesale resignations.

<snip>

If a substantial amount of oil transactions will suddenly be conducted in Euros instead of Dollars, this should put pressure on the Dollar as folks exchange Dollars for Euros, jeopardizing the Dollar's status as the world's reserve currency, making it more difficult to print all the dollars the Fed wants to without driving the Dollar into the ground. Iraq threatened to do what Iran has threatened to do just before we went in looking for weapons of mass disappearance. If the Dollar tanks, Treasuries might not be far behind. If Treasuries tank, kiss the Housing-driven boom goodbye. Could the Master Planners be hiding M-3 because they anticipate they may have to monetize the Federal debt, buy our own Treasury Bonds during the coming economic attack against the Dollar? That would require a ton of new fresh money creation - too much to disclose. Could it be some folks at the top of the Fed do not have the stomach to be part of what is about to go down?
http://www.intalek.com/Index/News/Safehaven_WhatsTheFedUpTo.htm