WHAT'S THE FED UP TO WITH THE MONEY SUPPLY?(Chart didn't copy over)

Financial Sense Online ^ | 26 December 2005 | Robert McHugh

[antaresequity]

I cant believe someone would argue in favor concealing M3 on this forum... but then again...anyone who equates debt with worth is not to be listened too..

When the Fed conceals M3, and Bernake is in place...you can watch the beloved dollar resume its multi-year downward spiral...

Coincident with that will the next leg up in gold and commodites from a dollar denominated perspective...

BTW...did you happen to notice the yield curve inverted in the bond market today for a moment for the first time in 5 years?...what happened 5 years ago to the market...

Good luck...your going to need it...

[antaresequity]

You would be better served if you looked through his politics...the substance of his arguements (facts) are solid...

Good luck...The best place to be in this market right now is out...

[antaresequity]

Timber....

[Pessimist]

"If the dollar loses it's status as world reserve currency .. our way of life ceases."

Look at the bright side. A weak dollar is good for US manufacturing, agriculture and exports.

[Toddsterpatriot]

I cant believe someone would argue in favor concealing M3 on this forum...

Please explain what M3 shows that isn't in M2.

... but then again...anyone who equates debt with worth is not to be listened too..

Didn't say that. Household net worth is at an all time high.

Fed PDF, page 110 of 124

[Toddsterpatriot]

And why is this chart so scary?

[A Balrog of Morgoth]

No paranoia involved, none at all.

Well, since I did not respond to any post of yours, nor did I mention or imply that any poster here suffers from paranoia, could it possibly be that you are...

paranoid? (j/k, surely you are responding to another poster).

Simply an usual ability to see connections and draw relevant conclusions, far beyond the less intelligent sort of people.

I'll be sitting in the corner picking my nose, should you require me for any of the menial functions generally performed by the "less intelligent sort".

[antaresequity]

Who said it was scary?...

Are you paranoid or somthing?

LOL...

[Toddsterpatriot]

I get it, it's the chart for gold.

[antaresequity]

No...its a sharp intraday sell off of the SP500 March Contracts...

Healthy selling...not to worry...the next Bull Market is here...

This is a buying opportunity...

He ehe...Just ask that idiot Jim Crammer...he will tell ya...

[Moonman62]

Look at the bright side. A weak dollar is good for US manufacturing, agriculture and exports.

The German government essentially said the same thing in the 1920's.

[coloradan]

Tulip bulbs don't exactly have a multi-thousand-year history of value, and now that transportation makes a trip to the beach a simple matter, salt doesn't quite have the rarity thing going for it any more.

[Pylot]

If you keep on with the logic of my reasoning the problem is that we would seriously increase the value of the euro.

The potential for it displacing the dollar as a reserve currency would be put into motion.

The result would be that in order to continue to service our debt we would have to increase the interest rate that we pay on treasuries.

There is no flaw in my reasoning. The value of the dollar is what would be at stake.

If we are unable to service our debt then the option is default. Given that we must sell a billion in treasuries every day just to serve the interest we currently must pay the potential for allowing the dollar to fall from favored status must be avoided.

[coloradan]

Their economy, their military, their printing presses.....there are many things that the Germans and French don't do as well as the US.

You say that as if inflating the currency by tens of billions every week were a good thing. I don't think so.

[Toddsterpatriot]

No...its a sharp intraday sell off of the SP500 March Contracts...

Wow, almost back to where we were last Wednesday. It's like Oct 1987 all over again!!!

[Pylot]

I think that it (Iraq selling oil for Euros only) was Saddams last declaration of war against us. Bad idea on his part but certainly not the only reason we decided to depose him.

[Always Right]

I wish we would ban postings from Financial Nonsense Online. It is pure crap.

[Toddsterpatriot]

There is no flaw in my reasoning.

Buying oil with dollars sends dollars out into the world. Selling dollars to buy Euros sends dollars out into the world. I'm not seeing a huge difference.

The potential for it displacing the dollar as a reserve currency would be put into motion.

Arabs can take their oil dollars and buy Euros with them now.

Given that we must sell a billion in treasuries every day just to serve the interest we currently must pay the potential for allowing the dollar to fall from favored status must be avoided.

Sure, if the world wants to buy French/German Euros instead of American dollars that would raise our cost of capital. Don't see it happening yet.

[coloradan]

Illegals are cheaper partly because you don't have to pay health insurance, SS, withholding taxes... Take those expenses out of an American's wage, and the pay we give to illegals looks pretty good in comparison. And they are, once again, all legislated.

[Moonman62]

When the Fed conceals M3, and Bernake is in place...you can watch the beloved dollar resume its multi-year downward spiral...

Coincident with that will the next leg up in gold and commodites from a dollar denominated perspective...

BTW...did you happen to notice the yield curve inverted in the bond market today for a moment for the first time in 5 years?...what happened 5 years ago to the market...

If anything, the yield curve indicates a strengthening dollar, especially when one considers that the EU funds rate is much lower. Bernanke needs to end the current tightening trend. There's no need to cause a recession, though Greenspan seemed to enjoy them immensely.