The mysterious M3
Drizzt’s Take:
I’m gonna be off for ICT.But before that spotted this interesting tidbit. You really hear thos M3 being thrown around alot in relation to inflation. so what is its relationship? TraderMark wrote in his blog about the M3 a long time back.
Interesting is the fact that there are so many theories why it was removed from reporting in 2006.
Attached is also a link to ShadowStats. John Williams did a fine job trying to gather the data to continue to construct the M3.
Let me preface this by saying that, unlike Greenspan I do not enjoy laying in the bathrub reading economic discourse. That said, in retrospect an interesting thing happened a last year – the disappearance of the M3 measure from government statistics. Stay with me – it gets interesting.
An interesting article I picked up just by surfing the net; which in times like this makes one feel very much a conspirisy theorist.
First what is M3?
So what is M3? To understand what M3 is one needs to know what M1 and M2 are as well.
M1 – Money supply that includes all coins, currency held by the public, traveler’s checks, checking account balances, NOW accounts, automatic transfer service accounts, and balances in credit unions.
M2 – Money supply that includes M1, plus savings and small time deposits of depository institutions, overnight repos at commercial banks, and retail mutual fund money market accounts.
M3 – Money supply that includes M2, plus large time deposits, repos of maturity greater than one day at commercial banks, institutional money market accounts and Eurodollar deposits of US banks held at foreign branches and at all offices in the UK and Canada.
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More interesting – why is M3 suddenly gone?
Some of the reasons we have seen floated around are as follows:
Continue reading here at TraderMark’s site >>
Your link to Shadow Government Stats>>
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