Discontinuance of M3

Saving 1.5 million a year is exactly something that a government bureaucracy would do, based on its own internal issues. Even if somebody out there may conceivably benefit from the program.

Honestly I doubt it. The only time I heard about M3 was now when they were going to take it away.
 
From http://www.federalreserve.gov/releases/h6/Current/:

H.6 (508)
Table 2
MONEY STOCK MEASURES
Percent change at seasonally adjusted annual rates


-----------------------------------------M1-----M2-----M3
-3 Months from July 2005 TO Oct. 2005----3.9----6.3---11.5
-6 Months from Apr. 2005 TO Oct. 2005----1.0----4.5----9.1
12 Months from Oct. 2004 TO Oct. 2005----0.5----4.0----7.3

Sounds like M3 is going away because it is going up so fast. That might be because M3 is for some reason a poor measure of money, or it might be because the feds don't want folks to worry about how much more money is floating around, or both.
 
Quote from The Kin:

That's a pretty big jump, no?
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Track it back a few decades in Excel, the Ms have been going nuts for a while. It can't keep going like that forever, but I dunno how to tell when it's gonna stop until it does.
 
Quote from wilburbear:

Yes, not publishing M3 shows the fix is in - and again, it's probably to the benefit of all Americans.
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As in "What we don't know won't hurt us?" How blissful.
 
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.
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Wrong. That's the problem. You take an educated person like yourself, and he or she will grasp onto a concept like this because it seems logical enough. And there are many instances of these seductive and easily digestible lies, especially in matters of money.

How could a devalued dollar make goods more competitive with China when China's currency has previously been pegged to the dollar?

Think about it.

"America has been entranced by the mirage of a weak dollar, however, a net importer cannot possibly benefit from currency devaluation over the long term. Unfortunately, the average American family does not release a quarterly earnings report. While American corporations have been experiencing profits on exports, American citizens have been experiencing losses on imports."

But there's a lot more to this whole story on several different levels...
 
Afterburner, I agree with your assesment, but that means it may become cheaper to buy US goods instead of Chinese goods at Wall Mart.

Less Chinese goods purchased means a logical purchase of more American goods and more mfg. in the US which would be a good thing, don't you agree? Americans buying American products is a good thing, right?
 
In principle, yes.

The problem is that the capital and production capacity in the US does not exist any more, except for agricultural commodities.

Capital and knowledge was destroyed in the US, and transferred overseas.

When companies had the choice of re-investing in US factories with latest technology, they instead went overseas---and put the newest technology there.

So whatever remains in the USA is still inefficient and poor and old.

If chinese prices go up, then prices go up, period.

Who will be making toys or textiles or furniture in the US? How much more expensive would Chinese good need to be for this to change? A factor of 2? Not even remotely. Maybe a factor of 10, and the yuan is not going to go up 10 times.
 
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