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Guest_chris c-t_*

Us M1 Supply Going Vertical..

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Background:

M1 is about $2Tr. (physical currency part of bank reserves + the amount in demand accounts (e.g. "current" accounts))

M2 is about $10Tr. (M1 + most savings accounts,retail money market accounts, and small denomination time deposits)

M3 is about $15Tr. but no-one knows for sure as the Fed stopped publishing it. (M2+Large time deposits >$100000, institutional Money Market, Repos)

I noticed this yesterday:

It's the M1 Money stock (Non Seasonally Adjusted) from the St Louis Fed....

M1NS.jpg

My additions in red, original image from

http://research.stlo...ies/M1NS?cid=25

But look at the rate of increase; it's phenomenal! Even by shadowstats' standards the M1 Rate of increase has broken out into new territory!

m1sgs.jpg

So, by increasing M1 as M3 falls, they can kick the can down the road. I think this is what Mike Maloney showed us they were doing.

Also, M1 Money velocity is still very low on an historical basis..

Comments?

Edited by chris c-t

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How about people with money don't know what to do with it?

Aren't most of the S & P 500 components sitting on mountains of cash?

eg, Apple of course,

http://www.thestreet.com/story/11104168/fast-money-recap-apples-cash-mountain.html

But how many have debts as well? Doesn't the US allow debt to be a tax write off for companies?

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How about people with money don't know what to do with it?

Aren't most of the S & P 500 components sitting on mountains of cash?

eg, Apple of course,

http://www.thestreet...h-mountain.html

er no. they are sitting on mountains of "I hope the bank can pay out when we need it"

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  • 333 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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