Economic Charts

All economic charts are at the bottom of the page.

Sunday, December 12, 2010

Weekly M1 and M2 update

This week M1 expanded 8.4% YoY (Year over Year) and M2 expanded 3.23% Year over year.  I am posting the new chart which corrects last weeks as last weeks chart had an incorrect formula (copy paste issue).  As you can see the money supply is actually expanding again which definitely fly's it the face of Ben Bernanke's 60 minutes interview that money supply is decreasing.  

Having said this, money supply does contract when debt is paid down.  As our money supply is debt based, when a foreclosure occurs, credit cards are paid off, lands get paid and mortgages are written down, debt comes out of the system which contracts the money supply.  In an environment where all of this is occurring, it is telling that money supply is still expanding (due to money printing by the FED).  See Shadowstats chart at the bottom of the page for M3.

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