Re: Discontinuance of M3 - Hang On
boddi satva wrote:
Hang on, why is M3 useless? The Bank of England publishes an M4 and M5 don’t they? Isn’t it a little suspicious that after increasing the money supply so copiously the Greenspan Fed conveniently retires the broadest measure of money?
What’s it telling us? An inflationary boom is imminent? For the year ending October, M1 was up 0.5%, M2, 4.0%, and M3, 7.3%. Which should we listen to? All three Ms were up 7-9% in mid-2003 - what did that mean? In early 2002, they were up 8-12% - was an inflation boom imminent? If so, what happened to it? In Oct 2000, M1 was of 0.3% and M3 was up 10.2% - just before the recession began. What did that mean?
Doug