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To: TheLion
Greenspan also helped keep inflation at bay....give the guy some credit.<<<

Have u checked M-3 lately???...Oh u cant now can u?...I wonder why?....(see tagline)
22 posted on 12/02/2006 4:19:20 AM PST by M-cubed (Why is "Greshams Law" a law?)
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To: M-cubed
Have u checked M-3 lately???...Oh u cant now can u?...I wonder why?....

Why can't you use M2? Repurchase agreement information is still available. Where's the conspiracy?

If the money supply is being expanded so far beyond what's required for GDP growth, where's the inflation? 10-year bonds are yielding about 4.4% so inflation is in the 2.5% range. You can still get a 30-year mortgage for 6.15%, which means that the long term expectation for inflation is low.

Besides, The Fed has used interest rates instead of money supply to spearhead monetary policy for the past 20 years. The fact that M2 and M3 have grown so much with low inflation speaks volumes to the disconnect.

45 posted on 12/02/2006 9:16:59 PM PST by Mase (Save me from the people who would save me from myself!)
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