Monday, November 24, 2008

Money supply starting to grow more rapidly



M2 (y-o-y % change)

Growth in this aggregate is starting to accelerate. Sign that things may be stabilizing.

3 comments:

googleheim said...

What about the so-called excessive printing of dollars by the printers, is that a bad thing and how much is actually being printing per year ?

Why do Foreigners think that spells the doom for the U$D long term, especially Brits - are they hoping for a strong quid or is this a serious note ?

mike norman said...

I don't know anything about excessive printing. Foreigners say what they say because they are jealous of America. Believe me, I know. I lived abroad for 10 years.

googleheim said...

OK - I know your current mantra is that "any sovereign nation ..." is immune to spending or what have you.

However, some bow ties are thinking in the following steps :

1. addressing deflation with cutting rates and printing money ( which is to be injected into the "system" )
2. 1 leads to inflation later

The example given was 2001/2002 - the lower rates fueled the bubble which had all sorts of inflationary effects upon commodities.

However, same bow ties are giving up on the U$D since the external deficit is $13 trillion and this is only one side of the accounting sheet.

http://us.ft.com/ftgateway/superpage.ft?news_id=fto111420081820462328&page=2

http://ftalphaville.ft.com/blog/2007/10/29/8442/jim-rogers-on-chinese-bubbles-and-bernankes-printing-press/