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Old 08-02-2009, 08:41 AM
 
12,869 posts, read 13,698,633 times
Reputation: 4453

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the government no longer publishes the M3 money supply data. Most people probably say "Who Cares?" Right?

But you should care! And here's why:

"The Federal Reserve tracks and publishes the money supply measured three different ways-- M1, M2, and M3.

These three money supply measures track slightly different views of the money supply.

The most restrictive, M1, only measures the most liquid forms of money; it is limited to currency actually in the hands of the public. This includes travelers checks, demand deposits (checking accounts), and other deposits against which checks can be written.

M2 includes all of M1, plus savings accounts, time deposits of under $100,000, and balances in retail money market mutual funds.

But that is all small potatoes, M3 includes all of M2 (which includes M1) plus large-denomination ($100,000 or more) time deposits, balances in institutional money funds, repurchase liabilities issued by depository institutions, and Eurodollars held by U.S. residents at foreign branches of U.S. banks and at all banks in the United Kingdom and Canada."

In other words, M3 tracks what the big boys are doing with the money. This includes US dollars held in banks in Canada and the UK (called Eurodollars) not to be confused with the Euro which is the standard currency of Europe.

So the question immediately arises why would the FED stop tracking this?
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Old 08-02-2009, 08:53 AM
 
Location: Northern California
481 posts, read 704,606 times
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I was shocked when I learned they stopped publishing this data.
It indicated to me evil and underhanded goings-on behind the scenes.
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Old 08-02-2009, 10:03 AM
 
Location: Great State of Texas
86,068 posts, read 76,777,953 times
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Shadowstats still calculates M3 and reports it on their site.

Inflation, Money Supply, GDP, Unemployment and the Dollar - Alternate Data Series
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Old 08-02-2009, 02:11 PM
 
Location: Backwoods of Maine
7,315 posts, read 9,014,375 times
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They stopped publishing it just before Bernanke came on board. They knew he was a "print it outta thin air" kinda guy, that's why they selected him. And as HappyTexan states, the Shadowstats site has it all there to see, that Bernanke lived up to his reputation!

Helicopters, anybody? How 'bout wheelbarrows?
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Old 08-02-2009, 02:16 PM
 
Location: Warwick, RI
3,683 posts, read 4,547,541 times
Reputation: 5928
Nah, the government is just broke, and they just couldn't afford the printers fees.
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Old 08-03-2009, 08:47 PM
 
Location: Conejo Valley, CA
12,470 posts, read 18,209,076 times
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They stopped publishing it because the information is essentially useless. It was not predictive of anything.
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Old 08-03-2009, 09:03 PM
 
Location: Great State of Texas
86,068 posts, read 76,777,953 times
Reputation: 27652
Quote:
Originally Posted by user_id View Post
They stopped publishing it because the information is essentially useless. It was not predictive of anything.
Not all data need be predictive. Some, like M3, show current activity.
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Old 08-03-2009, 09:08 PM
 
Location: Conejo Valley, CA
12,470 posts, read 18,209,076 times
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Quote:
Originally Posted by HappyTexan View Post
Not all data need be predictive. Some, like M3, show current activity.
If its not predictive the FED is not going to be very interested in it. It really does not tell the FED much about what is going on, that is why they dropped it.

But you guys do not even think the data is real in the first place, so who cares?
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Old 08-03-2009, 10:40 PM
 
Location: Great State of Texas
86,068 posts, read 76,777,953 times
Reputation: 27652
Quote:
Originally Posted by user_id View Post
If its not predictive the FED is not going to be very interested in it. It really does not tell the FED much about what is going on, that is why they dropped it.

But you guys do not even think the data is real in the first place, so who cares?
The data is real enough. Its the changing forumulas that alter the outcome.
That's why the CPI and unemployment numbers look so good.
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Old 08-03-2009, 11:25 PM
 
Location: Conejo Valley, CA
12,470 posts, read 18,209,076 times
Reputation: 4343
Quote:
Originally Posted by HappyTexan View Post
The data is real enough. Its the changing forumulas that alter the outcome.
That's why the CPI and unemployment numbers look so good.
Huh? Most of the changes that have occurred have been in how and what data is collected, not the "formulas" used to generate numbers from the data. In the case of things like CPI, unemployment etc there is just data collected in a particular matter, no "formulas".

Everyone seems to complain about the government numbers when they don't fit the picture they want to believe. There is also no arguments given as to why the government numbers are no good, its just "its the government so it has to be cooked". If one thinks all the numbers are cooked, there is very little to talk about. You keep citing shadowstats, yet you do realize that his numbers are based on government numbers right? In fact, what he does is rather silly, he simply has defined a function that takes the government numbers and adjusts them. He is not collecting any data at all! If the government numbers are cooked then the shadowstat numbers are likewise cooked.
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