The Sad State of Money Supply
We didn't know then what we know now. The sad answer is that the government has already heard this argument and did what seems natural to it to correct (eradicate) the problem: they changed the rules.
In January when the government statistics were showing a declining money supply, these statistics were the result of the government changing the way they calculate money supply. Of course they didn't tell anybody this, they just did it. It has taken investigation to uncover this fact.
But that is all we know. We do not know exactly what they did, just that they did something that made the January numbers decline. The numbers have since rebounded to reflect 10% growth, numbers that are near all time highs. Numbers going forward from January should not be affected, although we don't really know how they are calculated.
The bottom line is that we are confused about everything except the fact that they changed the calculation and that they didn't tell us.
Confusion seems to be the state that they want us in.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter