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Money Supply Watch - October 2008 - final data

The final data for October 2008 indicates that the money supply has gone up by 8% as compared to October last year.

It will be important to watch whether or not this trend hold up over the next 2 months. If it does, it is very likely that that the current asset market crash will bottom out in about 1 year from now.

Money Supply Watch - Oct. 27th 2008 a.k.a Confetti the Dollar

As per data provided by the Federal Reserve on 10/27/2008 the money supply has grown by 15.3% to now $2.12 trillion. I have become a little more cautious about data provided throughout the month, but this is unprecedented.

Aside from private checking accounts and currency, the most eyecatching number is the amount of money that the treasury is holding in federal reserve deposits: $106 billion. This is unprecedented. As far back as my data goes there has never been anything near this. The largest number ever thus far had been reported on May 5th 1997: $32.4 billion.

Is this the beginning of operation "Confetti the Dollar"?

Money Sypply Watch - 10/20/08

As per data provided for 10/20/08, The money supply has grown by more than 6% since October 2007 to now $1.96 trillion.

Money Supply Watch - Sep. 2008 - final data

This article has moved to http://www.economicsjunkie.com/money-supply-september-2008/



The final money supply data for September indicates that the US money supply did not grow as much as we expected based on data provided during the month of September. The annual growth has barely exceeded 3%. It has grown to $1.93 trillion. However, the deflationary tendency cannot yet be considered as broken, further corrections in asset, commodity, consumer prices and a further strengthening of the dollar can be expected, unless the money supply growth once again increases this month.

Money Supply Watch - Sep. 29 2008

As per data supplied on Sep. 29 2008 the annual money supply growth has jumped up by an unprecedented percentage from one month to another, to now 8%. While over the past months the money supply was gradually approaching a zero growth scenario, it appears as though the month of September has seen a dramatic turnaround. The total money supply has grown from $1.87 trillion at the end of August to $2 trillion by the end of September.

The true money supply gives us indications about future development of asset and consumer prices and booms and recessions.

Money Supply Watch - Sep. 22 2008

As of September 22, the money supply has shot up sharply from $1.87 trillion to $1.94 trillion. The annual growth rate has exceeded 4%. As I expected in my last post regarding the money supply data from September 15th, the federal government's bailout of Fannie Mae, Freddie Mac, and AIG has significantly added to the stock of money available.

The injection of money by the Federal Reserve Bank has significantly exceeded the contraction caused by ongoing mortgage foreclosures and rising credit card defaults. The modified, now $800+ billion bailout bill that will most likely pass the US House of Representatives tomorrow will also add considerably to the money supply. We will keep monitoring it closely.

The true money supply gives us indications about future development of asset and consumer prices and booms and recessions.