Friday, September 10, 2010

ADJUSTED MONEY BASE

The dramatic actions of the FED seen in a more than DOUBLING of said money in just ONE YEAR! (compared to shown historical slow growth) How many X's in this chart is shown an actual decline? This shows how distorted and perverse current policy has become....is the FED trying to slowly drain the system of all the excess? This growth since 2009 had never been seen before.....rather dramatic as to what kind of crisis we have gone through....it does not appear over.
WHAT ARE THE IMPLICATIONS HERE? adj M base (current view no growth since May)

"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."

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