Federal Reserve is raising M3 by crisis proportions - something scary???

[Ugnmoose]

http://www.safehaven.com/article-1597.htm

<snip>
the Federal Reserve has confirmed our Stock Market Crash forecast by raising the Money Supply (M-3) by crisis proportions, up another 46.8 billion this past week. What awful calamity do they see? Something is up. This is unprecedented, unheard-of pre-catastrophe M-3 expansion. M-3 is up an amount that we've never seen before without a crisis - $155 billion over the past 4 weeks, a $2.0 trillion annualized pace, a 22.2 percent annualized rate of growth!!! There must be a crisis of historic proportions coming, and the Federal Reserve Bank of the United States is making sure that there is enough liquidity in place to protect our nation's fragile financial system. The amazing thing is, the Fed's actions mean they know what is about to happen. They are aware of a terrible, horrific imminent event. What could it be?

P.S. I am no economist, however I know enough about finance to know that something is going on here. There has to be some defined reason why the Fed is dramatically inflating the money supply by over 20%.

Stay tuned and strap in fellow DU'ers.

[LifeDuringWartime]

1. i had never heard of this M3 until i read that article today

never seen it mentioned in the media before.

[Ugnmoose]

3. Too technical for the average Joe

You can bet that market people are watching - let's hope its not a bolt for the exits.

[Alerter_]

5. M1, M2, and M3 are ways the Fed measures liquidity of money

http://www.federalreserve.gov/releases/h6/hist/h6hist1.txt

[patriotvoice]

2. Dupe. See also:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=105&topic_id=1214217

[Alerter_]

10. This is the result of Soros hedging the dollar

well Soros can't do it all by himself - Bush is certainly helping to drive the dollar down. But Democrats seem to want to believe that Soros is trying to "beat Bush" when what he is doing is sort of like the currency arbitrage he made his fortune doing. Nevermind, nothing to see here.

[Davis_X_Machina]

4. The October Surprise 2.0...

...got the green light, is my guess.

We need, to pull Junta Boy's chestnuts from the fire, a disaster big enough to cause a rally-round-the-flag effect without driving the Dow to 8500 in three hours.

[indepat]

7. And God only knows where the dollar will fall to in relation to other

major currencies. Four more year, four more years and a thousand years of perpetual wars.

[leftyandproud]

6. 3rd time this has been postedq

but good reading...Unfortunately, I don't think most DU'ers have a clue how much damage Keynesianism has done to our country...and I KNOW that the vast majority on the left do not want to go back to an honest money system (gold standard) because they feal it will limit their plans.

[Jackpine Radical]

8. The problem isn't so much Keynes

as it is the people who read only the half of Keynes that legitimizes deficit spending and neglect the other half that talks about repaying the public debt when the economy is more flush. I guess Clinton was the best Keynesian since Keynes in terms of returning what was borrowed.

[leftyandproud]

11. no, the problem is keynes

he pioneered the fake money policy of the USA (and the world now). Our moron leaders can print little green rectangles till the cows come home...This is the only way they will pay off the debt, by making existing money worthless...bad for savers...bad for investors...bad for business...bad for the economy...good for politicians who don't want to be responsible with our currency.

[Alerter_]

12. that went on long before Keynes

Lincoln even had greenbacks. Keynes did not invent fiat currency.

[leftyandproud]

13. greenbacks WERE backed by gold and silver

The USA is officially out of silver now and is buying on the open market to make their silver eagle coins...We still have plenty of gold, but it has no relation to our currency...The fed is inflating like there is no tomorrow.

every empire that has gone to a pure paper standard has collapsed...the romans are the prime example...They started out with 100% silver money, then diluted the silver content in each coin to 50%..25%..10%...5%..and finally, a fraction of 1%..eventually they scrapped the silver entirely and the government fell apart because the currency was worthless, and people stopped accepting it for trade.

[robcon]

14. I don't agree.

Leftyandproud wrote "..every empire that has gone to a pure paper standard has collapsed" That's a very misleading statistic. Since there are no empires today, every empire, whether they used fiat money or gold/silver, has collapsed.

Leftyandproud wrote "The Fed is inflating like there is no tomorrow." Huh? What inflation? Other than the price of oil (not controlled by the Fed) there is almost no inflation in the U.S.

Please be clear. Money supply growth does not equal inflation. Money supply growth in excess of the demand for money causes inflation. If there were an excess supply of money, interest rates would be declining, not rising.

As you probably know, leftyandproud, M1, M2 and M3 are not considered very accurate measures of money supply, due to the incredible amount of dollars in foreign banks and accounts that muddy the picture of the supply of money. Since the U.S. dollar is the primary currency in several countries, and the secondary currency in much of the world, this foreign supply of money, much of which is transferable to banks/corporations/individuals throughout the world, obscures the true amount of money in the U.S. economy.

[salinen]

9. Let's beg China

to forgive our debt.

[Alerter_]

15. that'll work!

someone posted earlier - you owe the bank a thousand dollars, that's your problem. You owe the bank 10 million dollars, that's the bank's problem.