Money Supply Exploded After Fed Purchases Began To Settle

From The Wall Street Examiner Email Bulletins Archive
January 8, 2013 - 2:39pm

The following is an excerpt from The Wall Street Examiner Professional Edition Fed Report to be published later this afternoon.  I have been alluding to the fact that once the Fed’s outright MBS purchases began to settle that the US money supply measures should explode. Those purchases began to settle in November, and lo and behold, money supply growth has exploded. Has anyone noticed? Does anyone care? M2 and MZM both rose sharply to new all time highs in the week ended December 24, 2012. As a result of the Fed’s earlier pause in money printing (aka Quantitative Easing), in July 2012 quarterly growth rates had come down from 15% on MZM and 12.6% on M2 to around 0-1%. Since then they have rebounding sharply to their present levels around 20.7% on MZM and 19.7% on M2. The annual growth rate had declined from over 10% early in 2012 to around 6% in July before rebounding to the cu...

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