Please read this...DU.

[undergroundpanther]

Discontinuance of M3

On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.
http://www.federalreserve.gov/Releases/H6/discm3.htm

You..Wondering WTF an M3 is...

How Is It(Money) Measured?
Sure, money is the $10 bill you lent to your friend the other day and don't expect back anytime soon. But exactly how much money is out there and what forms does it take? Economists and investors ask this question everyday to see whether there is inflation or deflation. To make money more discernible for measurement purposes, they have separated it into three categories:

M1 – This category of money includes all physical denominations of coins and currency, demand deposits, which are checking accounts and NOW accounts, and travelers' checks. This category of money is the narrowest of the three and can be better visualized as the money used to make payments.

M2 – With broader criteria, this category adds all the money found in M1 to all time-related deposits, savings deposits, and non-institutional money-market funds. This category represents money that can be readily transferred into cash.

M3 – The broadest class of money, M3 combines all money found in the M2 definition and adds to it all large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets.

By adding these three categories together, we arrive at a country's money supply, or total amount of money within an economy.

http://www.investopedia.com/articles/basics/03/061303.asp

M3 measurements include M2 components,
Like... institutional money market mutual funds,..
http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/02/two_more_mutual.html
http://moneycentral.msn.com/content/Investing/Startinvesting/P85068.asp

And large-denomination time deposits.....
http://www.realcities.com/mld/krwashington/11564178.htm

And repo agreements on U.S. government and federal agency securities,
And Eurodollars held by U.S. addressees overseas.....

http://www.dailykos.com/story/2005/10/10/192940/00
http://bigpicture.typepad.com/comments/2005/11/money_supply_an.html
http://www.neffzone.com/cadillacnews/2005march19.htm


Why should we give a rats ass about this M3 shell game bullshit?

If an increase in the money supply is the cause of a rise in the general price level than M3 is an important measure of price inflation simply because it is considered to be the broadest measure of money and, hence, the best measure of price inflation. With M3 crossing the 10 trillion dollar level the Fed has decided to stop publication of this important data. The Fed by nature is an inflation machine built to support limitless spending by the government. Yet the Fed also enjoys the reputation of being an inflation fighter. In order to protect its image the Fed has found it necessary to cease publication of M3 data.

In other words ... CYA!The fall may hit hard and the thugs robbing us do not want us to know how much they have taken..
Wonder why the rich piggies are stuffing themselves senseless and defrauding workers and the poor so BRAZENLY in congress etc? I think it is,because they have,either by design or by incompetence and mismanagement(laissez Faire and tinkle on economics (sp)) and unbridled greed and old fashioned charlatanism ...blew the capital of our ENTIRE NATION without restraint,lived high on the hog,for a LOOOONG time..,and RUINED our economy!They do not want to pay for the damage done and the biggest crime of all time.

http://members.aol.com/gparrishjr/m3_inflation.html

[GrumpyGreg]

1. Too complicated for me---I'll check back and see what the smart

DU'ers have to say.

[Catherine Vincent]

4. same here

Thanks for the post Undergroundpanther!

[GrumpyGreg]

2. Duplicate

Dup-sorry!

[tx_dem41]

3. This has been posted before, and the consensus of the DU

economic "experts" was that the M3 figure is largely redundant. Their conclusion was this is not some conspiracy to hide numbers.

[undergroundpanther]

10. I disagree ..

When I look at the types of funds and exchanges that fit under the umbrella of the M3 category,and I observe how criminal minded the corporates,banks and feds are behaving,as in world com,and Halliburton,Bcci and others..it is very important to be able to see these numbers and be able to track them and understand what it MEANS to you your family,your community,your nation..Also it is important for people to UNDERSTAND WTF is going on with the economy. Transparency is not transparent enough if only"smart" people can read it and "translate" it. This is a reason WHY I hate "legalese" and other"professional" types of language that you often see in fields like economics ,law or medicine Complicated gibberish for simple things..Things that touch everyones lives,but in different ways. Part of having a functioning democracy is having an INFORMED populace and that requires the information be readable BY THE POPULACE...

[IChing]

13. I agree, I follow the money market and it's too magical and a mysterious

to this unfrozen caveman lawyer.


Your concept of money is funny to us cave people, not like our goods were in my caveman times.
We would trade with our neighbors, but you guys have got these magical metal things that are used to pay for all debt, goods and services...

I am just a caveman but usually we had to have something to trade in order for it to have value. It is a mystery to me, this money thing.

I do not understand for I am just
Unfrozen caveman lawyer.

[The Doctor.]

20. Very well put.

There is indeed a 'noble class dialect' and 'goodspeak' as bridged only by expensive education or patient attenuation.

I see the categoric inflation markers that must be present in an 'M3' model...

But I would like to know more, I will have to examine your links and come back to this. It does indeed seem fascinating.

[Peace Patriot]

38. "Complicated gibberish for simple things"-Good point! Electronic voting..

...suffers from the same "expert" gibberish, so that most voters don't have a clue any more how their votes are counted.

It's really very simple: Far rightwing Bushite corporations--Diebold and ES&S--tabulate the votes with 'TRADE SECRET,' PROPRIETARY software--software so secret that not even our secretaries of state are permitted to review it. Behind closed doors vote tabulation. Owned and controlled by Bushites. Totally non-transparent.

We need...

Paper ballots hand-counted at the precinct level (--Canada does it in one day, although speed should not even be a consideration, just accuracy and verifiability)

or, at the least...

Paper ballot (not "paper trail") backup of all electronic voting, a 10% automatic recount, very strict security, and NO SECRET, PROPRIETARY programming code! (...jeez!).

----------

See this URGENT ACTION thread re: Diebold in California!

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=104x5410364

Throw Diebold and ES&S election theft machines into 'Boston Harbor' NOW!

[hvn_nbr_2]

24. The consensus has been different on different threads

There have been several threads about this and the consensus has been different in different ones. One that I remember was one of the daily stock market threads this week got into it some and some people thought it was a very serious portent. I tend to think that, although from a position of limited knowledge.

[RazzleDazzle]

31. Your taco company?

You mean fast food joint? or something else?

Great sig would be even better with a better choice of receipt-providers. Grocery store, perhaps? Drug store? Gas station?

[hvn_nbr_2]

33. The point is to be as trivial as possible.

No matter where I buy a taco--fast food joint, grocery store, gas station food stand--they give me a verifiable receipt.

[RazzleDazzle]

34. well call it a taco stand then

taco company sounds like a company that makes taco shells and sells them to Taco Bell and General Mills.

[bigbrother05]

28. Anytime this cabal stops providing regular reports

it is hiding something, no matter what it is. Think back to the way they have handled EPA reporting, Intelligence reports, etc. If it didn't matter, they would just keep doing it. Efficiency is never their reason, it's all power and misdirection. If the Fed is buying up the market, it isn't to help Joe Sixpack. Anyone that thinks dropping a report showing how the Treasury is joining the corporate marketplace is redundant needs to think again. The M3 is the broadest measure of dollars, no matter how cryptic the definitions may be.

This misAdministration should be required to provide more reports, not less!

[BJW]

37. Yes! Why change something that's been SOP?

[Iowa]

41. Yep. More information is better than less. n/t

[RazzleDazzle]

30. That wasn't true of the one previous discussion I saw

brief tho it was.

And in fact, it defies common sense and experience in one important way: anytime these bozos are hiding information, you damn well can bet on the fact that there's something important they don't want you to know.

BigBrother said it better than I.

[TheBaldyMan]

5. trying to cover up massive govt. debt? n/t

[ClayZ]

6. No Shit! Stock your larders with WHISKEY and

Toilet Paper. Something to trade for other goods!


YOIKS :yoiks: :yoiks:

[Octafish]

7. The New Feudalism

Very important information, there, Undergroundpanther. Thanks for the heads-up.

Not reporting how much money is needed to prop up the stock market keeps taxpayers in the dark and buys the BFEE time. Guess who'll be left holding the bag?

The end result will be America as the New Haiti, a model economy where one-percent own 99-percent. On top will be Jebthro or some such Baby Doc Bush.

CopvCIA has a good overview:

The Fed Announces it Will Hide M-3 To Keep You From Knowing What?

by Robert McHugh
November 14, 2005
Safehaven.com
http://safehaven.com/article-4108.htm

The Federal Reserve announced on November 10th, without explanation, and I quote, "On March 23, 2006, the Board of Governors of the Federal Reserve System will cease the publication of the M-3 monetary aggregate. It will also cease publishing the following components: large-denomination time deposits, RPs, and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item on this release."

Why? It's simple, really. So that the Plunge Protection Team can hide its market manipulative, equity buying activities. You see, one of the key differences between M-2 (which it appears they will report) and M-3, is repurchase agreements. This is perhaps the most obvious reporting item where PPT market buying transactions show up. If they no longer report this item, folks like us who monitor the growth of M-3 for clues as to when the PPT is likely to buy the market, will have a harder time reporting that fact before, or even as, the PPT buys. Investors will be left more in the dark as to any secret rigging of the stock market. Why now? Apparently the Federal Reserve (a key member of the Working Group, a.k.a. Plunge Protection Team) sees a coming need to buy - or facilitate the buying - of markets, including the equity market, incognito. Apparently, they don't want investors knowing they are the ones doing the buying, keeping prices up, or pushing them higher.

We have continuously demonstrated the high correlation between growth in M-3 and a rising stock market. We have also demonstrated that when M-3 either declines or stays the same, the stock market is prone to decline. The Fed knows its hypocritical hyperinflationary expansion of the money supply recently has been publicized by Fed watchers, and that 12 percent annualized growth in M-3 during a time when the Fed is raising short-term interest rates aggressively, and jawboning a determination to stop inflation, is nothing short of illogical, bizarre Fed behavior. The reason for the dichotomy is quite simple. The Fed can electronically print money and hand it over to the PPT to buy this stock market. That has to be why all the extra M-3 growth over the past several months.

When we presented the Hindenburg Omen analysis several weeks ago, we warned that the PPT would likely buy this market to stop the higher-than-normal probability that the market could crash. Why did we warn that the PPT would likely buy this market, and stop any potential crash? Because of the M-3 numbers. We could see there was too much money being created. We know that the way money gets into the economy is by the Fed buying securities. Inflation is too much money (M-3) chasing goods. Well, GDP (goods and services) is growing annually around 3.8 percent, yet M-3 was being pumped at three times that rate of growth. The difference had to go somewhere. It did. Into markets, and very probably equity markets.

Why all the M-3? Undoubtedly because the PPT wanted to manipulate markets at this time for reasons that are secret to everyone but them. We are left to speculate as to those reasons. Is the economy closer to the brink than anyone realizes? Or, is it politically expedient to goose markets? Do the corporatist elitists want the big payback for backing the powers that be, and insist upon a rising market into year end? Does Greenspan have an all-encompassing, overriding desire to ensure his legacy by seeing the Dow Industrials at an all-time high when he retires in January? We aren't privy to the reasons because the Master Planners do not believe in the forthright flow of information. They believe that bad news cannot be handled by the flock, that confidence must be boosted at all costs, even if it entails manipulating the markets. Don't let the dead be honored, instead sneaking them into Dover at night. Don't let the real jobless figures be released, goose them with a phony birth/death adjustment, and so on. Now we can kiss goodbye the most important Fed statistic computed. Do you see what is happening folks? The Unpatriotic Act steals your civil liberties. Three young girls from Kansas cannot board an Amtrak train to New York unless they have a government issued photo ID. Not some futuristic sci-fi plot. Now. It is called Corporatist Fascism. Next could be freedom of speech. Then martial law. A computer chip under your skin. Eventually, your right to vote. Then it is all over, game set and match.

http://www.copvcia.com/free/ww3/111705_world_stories.shtml#2

CONTINUED...

[IChing]

9. OK, we have a date. March 2006 (pay attention to this people)

This is a move to further manipulate
and influence their voodoo economic agenda
which will only benefit the chosen benefactors.

Nice post, nominated and bookmarked
for Sunday reading and research.

[kineneb]

11. guess what else is supposed to happen in Mar.06?

Opening of the Iranian oil bourse, exchanges to be in Euros. Hmmm.


"By the prickling of my thumbs, something wicked this way comes."
-the Witches, Macbeth

[undergroundpanther]

16. oh.Fuck.

I'm doomed.

[TheBaldyMan]

18. I have a question about the copvcia article...

the article says that the federal reserve is electronically printing the money but isn't it borrowing the money on the international market instead?
This cash could still be used to prop up flagging prices of equities but ( i think ) would devalue the dollar.
Could s/o please set me straight about this.

[Octafish]

45. They don't call it 'The Dismal Science' for nothing...

I don't even play an economist on TV, but from what I understand, M3 measures the amount of public liabilities versus GDP. While Asian governments had purchased big over the past five years, the latest I heard was US financial institutions had started to pick up the lion's share of US Government treasuries. Keeping the IOUs in-house may help the accounting. OTOH: any time money gets printed -- especially to prop up the stock market -- would seem like a dangerous illusion. The pros need info, like M3, in order to keep things on the up-and-up. When it comes to "mal-fee-unce," no one beats the Bush Family Evil Empire. Spectrum 7, HARKEN, BCCI, ENRON and war mongering come to mind.

Sorry to add to the confusion.

Most importantly: A hearty welcome to DU, TheBaldyMan! I know the feeling...

[RazzleDazzle]

32. Someone needs to tell the author that they've already taken care

of the vote thingie. Not a problem any more: we think we have a right to vote (tho the high court says not so), and dutifully truck off to do that periodically, but it's been made into not much more than an interesting to frustrating empty ritual, thanks to Diebold, ES&S and their friends.

[occuserpens]

8. Even more secrecy on economy...

:-( :-( :-( :-( :-( :-(

[smurfygirl]

12. okay, I'm paying attention

Nominated

[IChing]

17. congrats on your thousandth post

smurfygirl!!!!!

[undergroundpanther]

23. Loved your dog pics

I got a thing for huskys,they are such awesome dogs.Those eyes of icy blue..
and that brown dog doing the cat thing with just his tounge tip hanging out,too CUTE!
I like dogs a lot.. but cats will always be the shape of my heart.

[Gronk Groks]

14. Ok, let me get this straight...

...if M3 cannot be determined then inflation cannot be measured accurately. Since the housing/land bubble has almost peaked, there is a very real chance of recession occurring next year.

This is potentially VERY bad. It is called stagflation and we haven't seen it in the U.S. since the 70's.

Usually when a recession hits you pour money into it to get the economy running. Unfortunately we have run up our National Debt AND Deficits to such unbelievable numbers that any further increase in the money supply probably would trigger inflationary reactions. Especially if our our friendly Asian donor countries who are mysteriously buying our Governments Bonds decide not to do it any longer...

Now if you think this is all arcane mumbo-jumbo that doesn't affect you...you might consider Weimer Germany of the early 30's. Remember the stories of wheelbarrows full of money being needed to buy a loaf of bread. A very extreme example to be sure, but possible.

I may have missed something but....

[undergroundpanther]

15. You got it straight enough!

[northamericancitizen]

19. Nominated. We have a saying in Canada...

When the big U S of A catch a cold, we know that we will be sneezing soon.

Thanks

[gordianot]

21. Sorry but I think we may be catching the Bubonic Plague.

We are getting it from the rats in Bushco GOP.

[northamericancitizen]

22. Is there a vaccin out there that would spare us all? eom

[gordianot]

25. It's called the 2006 election.

Also make sure you identify any Neo-Cons or Neo-Con wannabes anywhere they may be hiding after we manage to get rid of them. I'm not one of those Americans who is willing to be run out of their country by Neo-Cons. The Neo-Cons will have to hit the road to avoid the wrath they have generated after the bills come due. Make sure the rats don't invade or hide in Canada with their ill gotten gains.

[applegrove]

26. Didn't Adam Smith say that "given perfect informations" the markets

will behave in an optimum way? Or someone said it. So that is the basic assumption of all the models. Perfect information. Lots of people are looking into how "information works" these days.

So why is the government just up and dumping info on the money supply? Something very strange indeed is a happening. Almost like the US dollar is so the second choice currency of the world - that Domestic economic indicators no longer matter.

Weird. Someone please explain it to all of us.

[fortyfeetunder]

27. I get it.

We'll be the last to know when the economic crap hits the fan. But we will suffer all the same.

[WePurrsevere]

29. True - Ignorance & fear is what BushCON & his Corp cronies want.....

as the norm. They think of the American people as "mushrooms".... just keep us in the dark and feed us lots of BuShit.

The problem they're running into is that not all of the 'Shroom's are satified living in the dark and accepting the constant dumps of bull they keep trying to force feed us. Some of us look for the light of truth and crave and search for real information to feed our minds with. As we learn and grow in knowledge and truth we reach into the dark to bring others into the light of knowledge and truth.

There is hope that we can still minimize the suffering but we need to concentrate on tipping back the balance of power to a party that may not be perfect but at least usually goes to bat FOR the little guy... not takes a bat TO the little guy as this new RepubliCON party has been.

[LincolnMcGrath]

35. Thanks for posting this UP

:yourock:

[BJW]

36. Extremely important topic! Thx

[annabanana]

39. what is the response of our regular money mavins?. . n/t

[BamaBecky]

40. kick

[annabanana]

42. kick. . . . . . n/t

[ozymandius]

43. It sounds like an intention to report "effect" in lieu of "cause".

I cannot speak with authority about the money supply aggregate. However, my inference tells me that intentions of dicontinuing the M3 reporting focuses on obscuring the big economic picture.

We hear of inflation indeces reported on a short-term basis. The constant flow of information obscures the details of the long-term economic trends. Reports might focus on a CPI index that registers 0.2% inflation over a month. And we are expected to feel good about that - after stripping the "volatile food and energy prices" out of the equation?

Well, the discontinuation of these reports seem intended to obscure the overall economic situation. People are lazy and many will not run the numbers that the Fed has provided for them in the past. Therefore, what results from ignoring areas like short-term repurchase agreements obscures the reasons for an increase in stock and mutual fund performance. Not knowing why either a stock or mutual fund increases in value - just an awareness of good performance - is a morale booster.

Same with eurodollars. (A eurodollar is defined as US dollars placed on deposit in banks outside the United States - usually refers to deposits in Europe.) This is another morale booster that I reckon to willful ignorance. The dollar has been under assault for years and has just recently retaken lost ground against the euro and British pound. One never will get a grand picture of the worth of one US dollar as long as the true value of expatriated amounts goes unreported. Dollar bugs will have to be satisfied with daily Forex reports.

In sum, do the long-term math on your own.

[TheBaldyMan]

44. ideal situation for cooking the books

There are a number of reasons why a government would want to obscure some of the indicators in M3

The USA's trade imbalance with China. There is a LOT of US money held by chinese banks( maybe eurodollars should be re-named Yuandollars).

Record levels of borrowing to pay for the war and to make up for the shortfall in govt. receipts because of tax cuts.

The Bush administration talks the talk but refuses to walk the walk when it comes to balancing the budget.

If they did try and balance the books it would probably be through spending cuts to social programmes rather than the military.

I'm assuming that they will never raise taxes on rich people.


Like you said the data might still be out there but you will have to trawl for it.

[lonestarnot]

46. Thanks for the economic review. It's been a while since I have reviewed.