Can you determine money in circulation without ' M3 ' data..?

AGENDA21

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Wed Mar-29-06 04:41 PM
Original message

Can you determine money in circulation without ' M3 ' data..?

Does anyone know...?

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kurth

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Wed Mar-29-06 04:56 PM
Response to Original message

1. Not easy

That's why economists and financial analysts are so pissed off. It's great news for the money printers, though. Just keep on printing... There is plenty of paper.

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pat_k

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Wed Mar-29-06 04:57 PM
Response to Original message

2. Looks like commercial banks are getting the data required to calculate M3

Edited on Wed Mar-29-06 04:57 PM by pat_k

M3 = M2 + CDs over 100,000 + CDs over 100,000 + deposits of eurodollars and repurchase agreement

From http://www.federalreserve.gov/releases/h6/Current/

Measures of large-denomination time deposits will continue to be published by the Board in the
Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly
basis (for commercial banks).

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Zynx

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Wed Mar-29-06 05:05 PM
Response to Reply #2

4. It's really not that important of a number.

I follow these matters closely and my father works in the investment industry and this really isn't a big deal. Economic data sets are created, altered, and dismissed all the time. M3 is not the most commonly used or important measure of money supply, though it is the largest. The problem is that it includes numbers that are not influenced by monetary policy.

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pat_k

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Wed Mar-29-06 05:52 PM
Response to Reply #4

5. Does M3 reflect distribution of wealth in some way?

Money mechanics isn't my thing, but other stats that reflect the growning imbalance in the distribution of wealth here seem to be getting buried (e.g., even something as simple as average family income relative to median).

Just wondering if M3 relative to M2/M1 is another statistic that exposes how quickly money is being sucked to the top?

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Zynx

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Wed Mar-29-06 09:11 PM
Response to Reply #5

6. Not really, no.

You could argue since it measures larger accounts that if they were growing rapidly wealth would be shifting towards them, but we already know that.

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pat_k

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Thu Mar-30-06 05:30 PM
Response to Reply #6

7. "We" may know it, but asset hyperinflation and redistribution up the ladde

Edited on Thu Mar-30-06 05:31 PM by pat_k

. . .aren't topics of public debate.

Given the devastating effect on the nation as a whole (e.g., see Asset Hyperinflation), these topics ought to be front and center, but it looks like they are being pushed completely off the radar by burying pertinent statistical measures.

I find it surprising that M3 doesn't tell us much. Money dynamics isn't my thing, but I would have assumed that the flow of investment capital in and out of various large-scale instruments has a substantial impact.

I guess I'm a cynic, but I can't help but think that keeping the M3 numbers from the American public is an attempt to cover up financial shenanigans that do harm to the "little people."

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Dr.Phool

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Wed Mar-29-06 05:05 PM
Response to Original message

3. Let' see

Empty out pockets.

A $20, a $10, a $5, and 7 singles and some change.

I'm rich bitch!!

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