Unpleasant Trend - Fed Counters By Stopping Release of M3 Money Supply Data

The Prudent Investor ^ | November 12, 2005

[vrwc0915]

I don't really know much about that blog. But hiding M3 data is not a good thing however you look at it. I am not a financial "wizard" and as far as investing goes I only invest in tangible assets.

Possession is 9/10 and if you don't hold it you don't own it. Paper is useful to write on and for cleaning up when using the head

[carl in alaska]

Just one last comment: I think the country is starting to suffer from information overload and major distortions of information because of too many uninformed and unprofessional news sources. Everybody thinks they're qualified to write about geopolitical events, politics, and economics, and not everybody is qualified. There's so much distorted, inaccurate information being tossed out by bloggers, radio shows, and especially left-wing activists. People write stuff in their blogs and publish it immediately on the web before they've even studied the issues. For example, Michelle Malkin is a great lady and very corageous but I don't think she understands this UAE port deal in detail and she's publishing commentary based largely on emtion without understanding that acquisition.

[A. Pole]

I am not impressed with that blog

Could you explain? What is has to do with the publication of M3 figures?

[vrwc0915]

I agree with your premise, however those who chose to use the grey matter that God gave them can usually discern bovine manure from fact

[carl in alaska]

I don't know about the M3 data. There may be solid technical reasons why it's not a good measure of money supply or it's not very meaningful. It may be a wise decision not to publish it; no information is better than distorted or meaningless disinformation. For example, the offical reported US "savings rate" doesn't include pre-tax 401K and IRA contributions, so it's a meaningless number and we might be better off if the government stopped publishing that number and invented a more accurate calculation of savings that includes 401K and IRA contributions.

[vrwc0915]

Are you advocating filtering public access to opinion and statistics?

[carl in alaska]

I didn't read it in detail, but my first impression of that blog is that it has some overly alarmist, overly pessimistic editorials based on a lack of understanding of how our economy and financial system operates.

[carl in alaska]

No, just don't publish meaningless statistics that amount to disinformation.

[planekT]

"Icebergs eh? Hmmmm."
"Full speed ahead!"

Captain Edward John Smith aboard the "unsinkable" Titanic.

[billybudd]

I don't get the relevance of the first graph. I'd like to know the burden of servicing our debt on our budget, compared to historical debt burden. I bet it's low/average.

[simon says what]

No, just don't publish meaningless statistics that amount to disinformation.

As a financial professional do you believe M3 is a meaningless statistic ?

[CodeToad]

PMs are at a stable high. Silver may cross $10 very soon.

[A. Pole]

Are you saying that the value of M3 is not important enough to publish it?

[Travis McGee]

What Chicken Little dares to say there is danger ahead? This is the greatest ship ever created by man! Why, it's engines, right now, are running at record RPMs! There is absolutely nothing in the future which can be a possible risk to this mighty vessel! Anybody who says otherwise is a doom and gloom nay-sayer! Full speed ahead!"

[planekT]

Hahaha. That's great!

[Travis McGee]

I'm just amazed that folks come on and DEFEND the stopping of publishing the M-3 data!

This is like a ship turning off the radar repeater in the passenger lounge, lest it frighten the passengers.

[Toddsterpatriot]

This is a stupid chart. It double or triple counts some debt. If you take out a car loan from GMAC and GMAC sells a bond to pay the auto seller, that debt is counted twice. And why no chart of assets? And why compare this debt number against a yearly number?

If I make $50,000 a year and get a 30 year mortgage for $200,000 my debt is now 400% of my GDP. Is that good or bad? I guess it depends on whether I want to sell you a big ass hunk of gold!!

[Travis McGee]

I guess the rose-colored glasses pom-pom girls who pop up here are trying to sell a few more houses before the bust.

[vrwc0915]

We will see who is laughing after about the 4th day of food/fuel shortages.