I sure wish Americans would put down the remote control and care about something. Anything. And one thing they (and the world) should care about seems so trivial, but actually is so important.
Yet nobody, no major media of any type, issued an article or report today (google news it - nothing at all).
The Fed as of today is free to oil up the printing presses and print as many dollars as they would like. And you know they will, and you know they have to. M3 is dead. Read this to understand the reporting if it's been awhile since Econ 101. Why did they, after all these years, suddenly stop issuing M3? Because they have to, because they can, and because they thought they could get away with it.
So, with the dollar about to start its long march to worthlessness, today is Day 1, Year 1. And away we go. Your savings, your wealth, your benefits, our deficit, our debt, our ability to pay our debt, bonds, stocks, our trade imbalance, your everyday low prices at Wal-Mart, and your home's value - all are impacted by this.
Discontinuance of M3
On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.
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).
M3 does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary policy process for many years. Consequently, the Board judged that the costs of collecting the underlying data and publishing M3 outweigh the benefits.
March 24, 2006
Posted by blogger at 3/24/2006