Minyan Mailbag: Money Supply
...the velocity of money is slowing more and more to offset the increases in the supply.
If possible, could you please identify where you retrieve money supply statistics and the frequency with which the data is released? I have come to the painful conclusion that this is all that matters. Any insight here is sincerely appreciated.
At the risk of an unproductive sarcastic-laden digression, perhaps the Fed should launch an ETF which tracks M3. It would trade at an immediate 100% premium to NAV and would double from there upon its launch. I can hardly think of a more sure bet.
As an aside, I think your work is fabulous but the last 2 years have proven what I think does not really matter. All the best in 2006.
Well, you won't be able to get M3 for much longer unless you are willing to cut and paste, dig and scrounge. We currently get the data from services, but you should be able to get it from the Fed's website.
There certainly is an attempt being made to "flood" markets with liquidity. But notice how it is taking more and more to have any affect. This is because Scott and I believe you are reaching the boiling point: the velocity of money is slowing more and more to offset the increases in the supply.
Corporations are having trouble doing anything with cash and consumers are full up.
We think we are reaching the point where we are pushing on a string. There are no "excess savings," there is only printing of currency.
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