Dollar Supply Levels Off

mattduke · Light Sweet Crude Joined: Oct 28, 2005 Posts: 1525

Graph (large)
Helps explain the recent dollar bounce.

seldom_seen · Fission Joined: Apr 12, 2005 Posts: 2047

Something weird is going on out there. Jim Puplava thinks there's been a massive stealth intervention by the world's central banks in the past few months.

mkwin · Intermediate Crude Joined: Jun 01, 2007 Posts: 624

Or a credit crunch?

r101958 · Tar Sands Joined: Apr 10, 2008 Posts: 97 Location: Florida

Credit crunch?.....certainly......Central Bank intervention......absolutely!......check out shadowstats.com if you want details.

outcast · Heavy Crude Joined: Apr 21, 2008 Posts: 246

Then again it also dropped off sharply (although not by this much) in July '07, which was right before the subprime bubble burst. Maybe we're going to see something even bigger come falling down......

idiom · Posted: Sun Sep 07, 2008 6:17 pm Post subject: Re: Dollar Supply Levels Off

M3 is the total supply.

Possibly money creation is sill steep, but money destruction has caught up as wealth disappears of books slightly faster than the press is rolling.
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Falconoffury · Expert Joined: May 25, 2004 Posts: 1471

The speed at which inflation is occurring is slowing, but it's still way too high.
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mattduke · Light Sweet Crude Joined: Oct 28, 2005 Posts: 1525

As we all know, the bust occurs when the rate of money supply inflation slows. As outlined in Rothbard's "America's Great Depression", the Fed and banking system stopped accelerating the dollar creation rate a few months before the great crash of 1929. Well, we have seen the dollar supply creation rate take a pause this year, and now we get the crash. However unlike 1929, we are now seeing a resumption in the dollar supply growth rate. The money pumping has resumed and it is now near 21% annualized. So the question for the Austrian economists out there is, does the renewed dollar supply growth spell the end of the crunch and postponement of the ultimate bust?