Discontinuance of M3

[Madison]

Quote from drsteph:

So think about gold if you had bought it at $480ish previously and held it until now. Without great insight, I think it was that last most recently in 1997. Take that same $480 and invest it at a lousy 4% CD rate compounded over the eight years and you get $ 660. That's why its hard to own gold at all times.

sure -- in dollars. ask a Turk if he would rather have been holding gold or turkish lira during the same period:

XAU/TRL:
01/01/1997 39879955.0
01/01/2005 601041034.0

and it gets much uglier the further you go back. I agree with you that the "always hold gold" theory of the alarmist end-is-near types has been a loser for americans, but if things go wrong, they can go very wrong....

 

[kowboy]

Quote from wilburbear:

I disagree with other posters here.

The "Plunge Protection Team" for the stock market was actually enacted by an executive order. That sort of thinking seems to have worked pretty well in the post 9-11 era. We might still be around 8000 on the Dow, without the government attempting to tweak us higher.

Yes, not publishing M3 shows the fix is in - and again, it's probably to the benefit of all Americans.

How does a devalued dollar benefit anyone, especially traders who depend on liquid dollar assets as their stock in trade?

 

[drsteph]

Devalued dollar makes US labor, goods and services more competitive vs. China. Allows the US to fill the role of a 'middleman' more easily.

 

[kowboy]

Quote from drsteph:

Devalued dollar makes US labor, goods and services more competitive vs. China. Allows the US to fill the role of a 'middleman' more easily.

Just another form of socialism, to devalue the dollar assets of those productive members of society. Another form of dishonest tax.

 

[Madison]

Quote from kowboy:

How does a devalued dollar benefit anyone, especially traders who depend on liquid dollar assets as their stock in trade?

it benefits borrowers, i.e., governments and corporations. and indirectly, the banks of course.

at the expense of savers and lenders - it destroys the value of savings generated by earnings of people that save wealth in fiat currency. conveniently, there seems to be less and less of them in the public.

 

[Htrader]

Finally a mainstream article about the M3. Yet another conspiracy theory debunked. I guess the author must be in on it too! Better get a head start to the bomb shelter.

http://quote.bloomberg.com/apps/news?pid=10000039&cid=baum&sid=abJD2CVu7kHk

 

[kowboy]

Quote from Htrader:

Finally a mainstream article about the M3. Yet another conspiracy theory debunked. I guess the author must be in on it too! Better get a head start to the bomb shelter.

http://quote.bloomberg.com/apps/news?pid=10000039&cid=baum&sid=abJD2CVu7kHk

In my opinion, the article and concluding sentence misses the point of the value of having good monetary data. "Good point. Don't let reason interfere with a good conspiracy theory."

M3 has been used by those following it as a gauge inflationary pressure on the dollar and in determining the devaluation trend of the dollar.

The article further quotes Robert Mchugh under the heading of "Conspiracy Perps."

Let me assure you that Mr Mchugh does not speak for all those that are concerned that this move to discontinue M3 may set the stage for further expansion of the money supply while keeping the public uniformed.

The article would have been more valuable to me if it had discussed in depth, the economic merits and the pros and cons of the usefulness of M3 as an economic gauge.

Mike

 

[Madison]

Quote from Htrader:

Finally a mainstream article about the M3. Yet another conspiracy theory debunked. I guess the author must be in on it too! Better get a head start to the bomb shelter.

http://quote.bloomberg.com/apps/news?pid=10000039&cid=baum&sid=abJD2CVu7kHk

``It's tough to argue that tax money should be spent collecting data that no one looks at,'' said Dick Anderson, an economist at the St. Louis Fed.

In the M3 review, the board staff determined the elimination would save roughly $500,000 a year for the board and Reserve banks and $1 million a year for depository institutions, according to a Fed board spokesperson.

the fact that she's writing about it at least suggests that "somebody" looked at it.

the idea that saving $1.5M a year motivates any US government decision is absurd.

 

[cable]

Quote from Madison:
the idea that saving $1.5M a year motivates any US government decision is absurd.

I agree totally. Who could actually believe the government would cancel the publishing of vital economic information that is widely used (at least in my experience) when the potential savings are not even a drop in the bucket, so to speak? It'll save us 2 minutes of debt.
<!-- start zFacts Gas Gizmo --><table id="zDebtBox"><tr><td><script type="text/javascript" src="http://www.zfacts.com/giz/G05/debt.js"></script></td></tr>
<tr><td><a href="http://zfacts.com/p/461.html" id='zF05' style="color:black;font-size:12px">The Gross National Debt</a></td></tr></table>
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[TGregg]

From a different (and soon to be deleted) thread:

Quote from Digs:

The fed will stop publishing these numbers next year ?

Why ?

These numbers can give clues as to the fed pumping monies into the economy.

Is the Fed stopping these numbers, BECAUSE the expect to pump in huge somes late next year, and dont want any one to see the extent of the amount.

Ie housing collapse maybe, deflation ??

Whats your view ?