[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help] 

Status: Not Logged In; Sign In

Ford forced to shutter factories amid worrying parts shortages: 'Hand-to-mouth right now'

7 Issues On The G7 Agenda: The Big Topics Albanese And Trump Could Discuss

Dark-Money Network Funneled Millions Into 'No Kings' Nationwide Color Revolution Operation

House Republicans Probe China-Based Billionaire Allegedly Bankrolling Anti-ICE Riots

Did Iranian ballistic missiles hit the Dimona nuclear reactor.

Rep. Green Letter to DoD IG Demands Answers On K2 Base Toxins

“Israel is DESTROYING itself by attacking IRAN and millions could die” Col. Douglas Macgregor

How Boeing 787 Whistleblower's Disaster Warning Was Ignored |

Israel Says Another Missile Barrage Launched From Iran Overnight, Casualties Rise

2025 Annotated Bilderberg Members List

Major Iranian Missile Impacts On Israel; IAEA Warns Radioactive Contamination Observed At Natanz

Israeli Strikes On Iran Ongoing Through Friday As Death Toll Surpasses 100

From Torah to trauma: A Satanic child abuse scandal blows up in Israel

MAGA Influencer Calls to Deploy Palantir on LA Streets

Egypt detains nearly 200 foreigners who flew in to join Gaza march

FLASHBACK - How Mayor Daley dealt with looters!

Scammers Use AI Bots to Impersonate Students, Stealing Millions in Financial Aid

Bilderberg 2025 begins. Global elites gather in Stockholm. AI, migration, and national security dominate

I Wish We All Could Leave California (Beach Boys Parody)

Exclusive: US slams UN conference on Israel-Palestinian issue, warns of consequences

Brilliant & Critical Insight!

Legal Immigrants Shift to GOP on Immigration, Shows 40-Point Swing from Democrats

American fuel tankers were spotted REFUELING ISRAELI JETS over Syria.

Does Western Civilization Have Enough Belief to Continue to Exist?

Trump CLEARLY KNEW of Israel's Plan To STRIKE IRAN

Trump Warns 'Even More Brutal' Attacks Coming Without Nuclear Deal

10 Supplements That Fight Inflammation

CNN Security Analyst Defends Agents Who Removed Senator Padilla From Kristi Noem Presser

Florida sheriff warns rioters: 'We will kill you graveyard dead'

DEMOCRATS' NIGHTMARE: Viral Video Shows Why They LOST The Election!


Business/Finance
See other Business/Finance Articles

Title: Whats the Fed Up To With the Money Supply?
Source: Safe Haven
URL Source: http://www.safehaven.com/showarticle.cfm?id=4331&pv=1
Published: Dec 23, 2005
Author: by Robert McHugh
Post Date: 2005-12-23 13:05:23 by Horse
Keywords: Supply?, Whats, Money
Views: 1636
Comments: 108

Over the past two days, December 21st - when our first Hindenburg Omen (of whatever cluster is coming) - and Thursday December 22nd, the Federal Reserve has conducted one of the largest two-day Repo injections of money into the system since back in September 2001. On Wednesday they added $18.0 billion in reserves and on Thursday they added another $20.0 billion. Is this a coincidence, coming right as we get another Hindenburg Omen? Probably not. Is something high-risk going on behind the scenes here? Let's review some facts at the Fed. On November 10th, 2005, shortly after appointing Bernanke to replace Greenbackspan, the Fed mysteriously announced with little comment and no palatable justification that they will hide M-3 effective March 2006. M-3 has been the main staple of money supply measurement and transparent disclosure since the Fed was founded back in 1913. It is the key monetary aggregate that includes Fed Repo transactions, that mechanism whereby the Fed increases reserves. The date when M-3 will start being hidden also happens to be the exact month that Iran will declare economic war against the U.S. Dollar by trading its oil in Petro-Euros on its new bourse. But there is more. The Federal Reserve currently has three vacancies within the 19 top Regional Bank and Board of Governor spots. Why? Part of ongoing wholesale resignations.

The latest is from the Philly Fed. Fed President and Open Market Committee member Anthony Santomero has announced his resignation after only a brief year and a half tenure. Very unusual. Hey, Fed Presidents are treated like gods. They have enormous power, prestige, and presence. Why quit? He is far from alone. Over the past few years no less than six Federal Reserve Regional Bank Presidents have resigned. This is highly unusual.

An immediate impact is that we are about to have a largely inexperienced batch of individuals conducting monetary policy in the United States. So of course, the first thing they will do is hide the key money figures. Two positions for the Board of Governors (there are 7)have been open for quite a while. Plus six of the 12 Regional Head spots have turned over during the past few years.

If a substantial amount of oil transactions will suddenly be conducted in Euros instead of Dollars, this should put pressure on the Dollar as folks exchange Dollars for Euros, jeopardizing the Dollar's status as the world's reserve currency, making it more difficult to print all the dollars the Fed wants to without driving the Dollar into the ground. Iraq threatened to do what Iran has threatened to do just before we went in looking for weapons of mass disappearance. If the Dollar tanks, Treasuries might not be far behind. If Treasuries tank, kiss the Housing-driven boom goodbye. Could the Master Planners be hiding M-3 because they anticipate they may have to monetize the Federal debt, buy our own Treasury Bonds during the coming economic attack against the Dollar? That would require a ton of new fresh money creation - too much to disclose. Could it be some folks at the top of the Fed do not have the stomach to be part of what is about to go down?

M-3 has a direct but lagging impact on financial markets. Look at the chart at the top of the prior page. Whenever M-3 rises, the Dow Industrials rise. Whenever M-3 is flat or declines, the Dow Industrials decline. The Dow Industrials are a bellwether for the economy. If we can monitor M-3, we can better monitor the future path of equities and the economy. It is wrong for the Fed to stop its disclosure for this very reason. Investors need to know in a free market economy, because M-3 infusion is centrally planned intervention into a free market system. Investors need to know when the Master Planners have decided to intervene. Our buy/sell signals were designed to pick up the scent of Master Planner intervention by analyzing supply and demand forces underlying the markets. So with or without a fully disclosed M-3, we will be able to continue to identify coming multi-week trends.

So what about M-3 the past week? The latest figures show that on a seasonally adjusted basis, M-3 rose 27.3 billion last week, a 14.0 percent annualized clip, and is up $76 billion over the past month, a 9.8 percent growth rate. But those are the massaged numbers. For the raw figures, fasten your seat belt. Are you ready? M-3 was increased $58.7 billion last week (that does not include the huge Repo infusions noted above), a 30.0 percent annualized rate of growth. For the past two week, the Fed added $93.5 billion to the money supply, a 24.0 percent annual clip. Over the past 6 weeks it is up $192.9 billion, a 16.7 percent Banana Republic hyperinflationary pace. This is nuts, folks - unless there is an incredible risk out there we are not being told about. That is a lot of money for the Plunge Protection Team's arsenal to buy markets - stocks, bonds, currencies, whatever. This level of irresponsible money supply growth makes shorting markets hazardous, yet at the same time says markets are at huge risk of declining. Maybe M-3 growth doesn't stop the decline this time. Should be a fascinating storm in 2006.

The recent rise in Gold catalogued 74 points over about a month, a 16 percent rally from precisely the day the Fed announced it would hide M-3 from taxpayers and citizens of this great nation. That is no coincidence. Gold sees hyperinflation, monetization of debt, and intervention into free markets. Gold is telling us it expects Ben Bernanke to be an inflationist.


Poster Comment:

My apologies, but as usual with this computer I could not copy the chart. This article does tell us that the M3 money supply is growing at a fast clip. And as of April Fools Day 2006 the FED will no longer tell us how much money they are printing. I still believe that REPORTED INFLATION will be low during 2006,at least, until after the elections in November. But the real purpose is for Wall Street to unload their junk bonds, steal what has not yet been stolen and invest overseas so they can repatriate their funds after the dollar collapses buying America for pennies on the dollar.

Post Comment   Private Reply   Ignore Thread  


TopPage UpFull ThreadPage DownBottom/Latest

Begin Trace Mode for Comment # 1.

#1. To: Horse (#0)

Ping to the unUsusal Suspects

Richard W.

Arete  posted on  2005-12-23   13:17:36 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 1.

#7. To: Arete, *unUsual Suspects* (#1)

Ping to the unUsusal Suspects

Let me help with that :)

Starwind  posted on  2005-12-23 15:49:33 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 1.

TopPage UpFull ThreadPage DownBottom/Latest


[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help]