M2 Money Supply has just hit its highest level (M/M annualized increase, seasonally adjusted) since the post September 11th, 2001 period.
The Federal Reserve is increasing liquidity as a cushion to offset upcoming rate hikes. Inflation fears led M2 growth to slow Q4 2003 and early 2004. Liquidity increased in February, March and April ~10% (month over month annualized) before spiking in May to the highest levels since the post 9/11 period.
May M2 Spike (m/m annualized)
Source: Dallas Federal Reserve
In addition to the usual gyrations, Money Supply seems to spike every 4 years — just before the Presidential elections; Call it a perk of incumbency . . .
Housing values starting to show signs of cooling
Why interest rates will climb
A hidden menace
What Should President Bush Learn from President Reagan?
Paid ‘ads’ for song plays revive payola memories
Meet Joe Blog
Quote of the Day:
“Investors operate with limited funds and limited intelligence, they don’t need to know everything. As long as they understand something better than others, they have an edge”
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.