NEW LOW for move ADJ M BASE
"The rate of growth of money supply since the middle of March, 2008, continues to be very low and materially below the rate of inflation. Falling real money supply reflects a continuing hawkish Fed stance.
A hawkish Fed isn’t especially friendly for growth or employment but does have an anti-inflation bias."
A hawkish Fed isn’t especially friendly for growth or employment but does have an anti-inflation bias."
Is the FED "quietly trying to withdraw some of the punch? from Mises
"According to the St. Louis Federal Reserve publication Monetary Base in an Era of Financial Change, the adjusted monetary base is an index that measures the effects on a central bank’s balance sheet of its open market operations, discount window lending, unsterilized foreign exchange market intervention, and changes in statutory reserve requirements.
The Adjusted Monetary Base is the one monetary component completely under the control of the Federal Reserve."
What I'm suggesting is the FED expanded their balance sheet by more than 2X in a very short time, and it appears it is draining liquidity from this one measure, not adding more....but they talk about doing more QE2......talk is key word....for now this chart says different.
Apparent breakout to 1150 range (one of my R levels) was cheered by bulls as proof 1130 R had fallen....2 days later we are back under 1130. Thejob of the market is to confound bulls and bears alike.....choppy action! last high 10 months ago.
Lots of blow off moves, will highlight one of these next chart.
D
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