Sunday, December 31, 2006

M3 - My, My You've Put On a Few While You've Been Away

Comet Gold alerts to some clever folks who have put M3 back together again: (Click Here to See M3). What's especially interesting is the analysis of the impact of accelerated activity in repos and their impact both on gold and the stock market. Also, M3 monetary creation has been on overdrive in recent months. hmmm.

While those figures are guesses at U.S. M3, the Eurozone still puts out real M3 figures and money supply is exploding across the pond (read about Eurozone M3) which leads to talk about additional ECB rate hikes. That of course would swing the rate differential further in favor of the Euro and push the dollar lower (and you thought the 'differential' was something your auto tech only talked about!) The article also mentions in passing that the Euro has now caught up to the dollar as the most widely circulated currency. That has broad and negative implications for the dollar too.

And for some comic relief, but then again maybe not so funny. I don't know where this orginates, but it's making its way throughout the web..

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