Economists fill void in M3 reporting by Cliff Jones, Bureau Editor
Economists everywhere are speculating in the void left by the Federal Reserve board ceasing it's M3 money supply reports. In a written response to senator Jim Bunning, Fed board chairman Ben Bernanke seemed to liken the move to turning the lights out when leaving a room.
"My understanding is that the Federal Reserve decided to discontinue publication of the monetary aggregate M3 because the costs of collecting and processing the underlying data were judged to exceed the benefits. The Federal Reserve will not withhold the M3 data from the public; rather, it will no longer collect and assemble that information. The Federal Reserve will continue to collect data for and publish the monetary aggregates M1 and M2 and their components."
One debate concerns whether M3 will even be missed. Arguably, M3 is a flawed and irrelevant subset of larger aggregates anyway. Also, Mr. Bernanke clearly states M3 will not be hidden, just no longer reported by the fed. Government has outsourced such reporting to private institutions before, if M3 is relevant to anyone they can calculate it for themselves.
Countering this is the Federal Reserve is a private corporation, and none has the will or wherewithal to duplicate the massive paper trail it has abandoned, allegedly as a cost-saving measure. To these it is ludicrous not to know M3, and see it's elimination as an attempt to hide something, as suggested by Robert McHugh.
But whether M3 is outdated or that this is a cover up is academic. All sides seem to agree that the Federal Reserve will be forced to expand M3 exponentially in coming months.
This speculation in America and Europe is associating this move to talk of pending war with Iran. Iran plans to shift to Euros for oil on March 20, which author Lindsey Williams claims will strip near 30% of the "value" of the dollar overnight.
These economists fear a Weimar Germany style "hyperinflation" in America, regardless of the reason for the demise of M3. Also discussed is war as the only way out of such a mess.
Sean Corrigan of the Ludwig Von Mises Institute feels what's being hidden are potentials not being discussed in the mainstream he calls "homegrown exigencies;" pension busts, consumers hitting the end of the rope and various market bubbles. He concludes "a heliborne rescue mission" of monetizing government debt is in store.
This, Mr. McHugh compellingly argues, is the present task of the "Working Group" aka "plunge protection team." The fed is on this team, and Mr. McHugh and Europeans such as "Europe 2020" seem to think the fed is banking on other parts of the team to scatter all the cards to the winds of war.
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Original Investigative Journalism from the
Columnist Guild News Bureau
"My understanding is that the Federal Reserve decided to discontinue publication of the monetary aggregate M3 because the costs of collecting and processing the underlying data were judged to exceed the benefits. The Federal Reserve will not withhold the M3 data from the public; rather, it will no longer collect and assemble that information. The Federal Reserve will continue to collect data for and publish the monetary aggregates M1 and M2 and their components."
One debate concerns whether M3 will even be missed. Arguably, M3 is a flawed and irrelevant subset of larger aggregates anyway. Also, Mr. Bernanke clearly states M3 will not be hidden, just no longer reported by the fed. Government has outsourced such reporting to private institutions before, if M3 is relevant to anyone they can calculate it for themselves.
Countering this is the Federal Reserve is a private corporation, and none has the will or wherewithal to duplicate the massive paper trail it has abandoned, allegedly as a cost-saving measure. To these it is ludicrous not to know M3, and see it's elimination as an attempt to hide something, as suggested by Robert McHugh.
But whether M3 is outdated or that this is a cover up is academic. All sides seem to agree that the Federal Reserve will be forced to expand M3 exponentially in coming months.
This speculation in America and Europe is associating this move to talk of pending war with Iran. Iran plans to shift to Euros for oil on March 20, which author Lindsey Williams claims will strip near 30% of the "value" of the dollar overnight.
These economists fear a Weimar Germany style "hyperinflation" in America, regardless of the reason for the demise of M3. Also discussed is war as the only way out of such a mess.
Sean Corrigan of the Ludwig Von Mises Institute feels what's being hidden are potentials not being discussed in the mainstream he calls "homegrown exigencies;" pension busts, consumers hitting the end of the rope and various market bubbles. He concludes "a heliborne rescue mission" of monetizing government debt is in store.
This, Mr. McHugh compellingly argues, is the present task of the "Working Group" aka "plunge protection team." The fed is on this team, and Mr. McHugh and Europeans such as "Europe 2020" seem to think the fed is banking on other parts of the team to scatter all the cards to the winds of war.
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Columnist Guild News Bureau
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