Information about finance, the economy and business. Entertaining and informative. Seeking Alpha Certified Mark Sunshine Chairman & CEO

Category Archive: M2

  1. The Inflation Monster Is Tame

    Despite the quick run up in gaso­line prices, the U.S. econ­omy isn’t about to be eaten by the infla­tion mon­ster. While it is a good bet that some­time in the next few years the Fed will have to deal with ris­ing infla­tion, now isn’t the time to change mon­e­tary pol­icy in an effort to slay […] [read full story]

    Posted in: CPI, Deflation, Economic Statistics, economy, Finance, Inflation, M2, Monetary Policy, Oil, Public Policy
  2. Renminbi to Replace the Dollar as King of Currencies? Not Likely

    There is a lot of spec­u­la­tion that the dol­lar is los­ing ground to the Chi­nese ren­minbi and that sooner or later the Fed will share the global stage with Chi­nese mon­e­tary author­i­ties. Chi­nese gov­ern­ment offi­cials and Jere­miad west­ern eco­nomic fore­cast­ers who claim that the ren­minbi will replace the dol­lar as the world’s pre­mier cur­rency cer­tainly […] [read full story]

    Posted in: China, Economic Statistics, economy, Finance, M2, Monetary Policy, Money Supply, Public Policy, Seeking Alpha, Trade, Trade Finance
  3. And Now For Some Really Bad Economic News…

     The U.S. econ­omy has a long way to go before the eco­nomic recov­ery will be either sus­tain­able or robust.  Mon­e­tary indi­ca­tors don’t look good and are once again get­ting worse.  I am con­cerned that the finan­cial sys­tem hasn’t recov­ered enough for the Fed­eral Reserve to with­draw from its pro­gram of quan­ti­ta­tive eas­ing.   While most of the […] [read full story]

    Posted in: BANKS, Credit Crisis, Economic Statistics, economy, Federal Reserve, Finance, Liquidity Trap, M1, M2, Monetary Policy, Money Supply, Politics, Public Policy
  4. What If The Fed’s Isn’t Printing Money Like A Drunken Sailor?

    What if con­ven­tional wis­dom about the Fed is wrong and it isn’t print­ing money like a drunken sailor? Well…that would make most of the media cov­er­age of the bond mar­ket and the econ­omy wildly off the mark. As it turns out while media talk­ing heads were rant­ing about how the Fed was run­ning their print­ing presses […] [read full story]

    Posted in: Bernanke, Brad Setser, Economic Statistics, Federal Reserve, Finance, M1, M2, M3, monetary policy, Money Supply, Politics, Public Policy
  5. 7 Faint Signs That The Economy’s Bottom Is In Sight

    There are opaque and early signs that the U.S. econ­omy has started the begin­ning of a bot­tom­ing process. Just like a div­ing sub­ma­rine needs to stop its down­ward motion and reach its low­est depth before it can resur­face, the econ­omy needs to go through the steps of slow­ing its decline and sta­bi­liz­ing before it can […] [read full story]

    Posted in: BANKS, Bernanke, CPI, Credit Crisis, Deflation, Economic Statistics, economy, Federal Reserve, Finance, Fiscal Policy, Inflation, M1, M2, monetary policy, Money Supply, Obama, Politics, Public Policy, TARP
  6. Sunshine Travel Log Blog – I Went Fishing And The Fed Slowed Money Supply Growth

    Last week­end I went fish­ing in Tokyo har­bor. The below pic­ture is my friend Masura Ono with a really big fish that he caught on his boat. Ono-san is a famous lawyer in Tokyo. He is a senior part­ner at the largest law firm in Japan as well as a law pro­fes­sor at the Uni­ver­sity […] [read full story]

    Posted in: BANKS, Deflation, Economic Statistics, Federal Reserve, Finance, Inflation, M1, M2, monetary policy, Money Supply, Public Policy
  7. Money Supply And Economic Data Weekly Watch – Living in the Twilight Zone

    We’ve entered the twi­light zone. This week’s money sup­ply and eco­nomic data is sur­real. Money sup­ply is grow­ing at an unbe­liev­able pace. As mea­sured by sea­son­ally adjusted M1 and M2, the Fed announced that money sup­ply set new all time records. The quick rate of growth for money sup­ply is actu­ally accel­er­at­ing. Over the last […] [read full story]

    Posted in: Cox, Deflation, Depression, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Hoover, Inflation, M1, M2, Madoff, monetary policy, Money Supply, Public Policy, SEC
  8. Money Supply And Economic Data Weekly Watch – Deflation Hurts The Economy Like Hydrochloric Acid Burns Through Steel

    Defla­tion hurts the econ­omy like hydrochlo­ric acid burns through steel. Falling prices destroy cor­po­rate and house­hold bal­ance sheets and make it impos­si­ble for the finan­cial sec­tor to func­tion nor­mally. Demand is destroyed by defla­tion which in turn leads to more defla­tion. The weak­est sec­tors are hurt first, but defla­tion quickly burns through healthy indus­tries. This […] [read full story]

    Posted in: BANKS, Bernanke, CPI, Deflation, Economic Statistics, Finance, GDP, Inflation, M1, M2, Manufacturing, monetary policy, Money Supply, Obama, Oil, Politics, Public Policy, Retail Sales
  9. Money Supply and Economic Data Weekly Watch – Not All Savings Is Good Savings

    Sav­ings increased but for the wrongs rea­sons The per­sonal sav­ings rate in Octo­ber was esti­mated to be 2.4% which was an increase of 1.4% from September’s sav­ings rate.  Nor­mally, dur­ing peri­ods of ris­ing unem­ploy­ment and increas­ing eco­nomic hard­ship the per­sonal sav­ings rate declines because some house­holds spend more than they earn. When con­sumers are con­fi­dent about […] [read full story]

    Posted in: Black Friday, Federal Funds Rate, Federal Reserve, Finance, Liquidity Trap, M2, Money Supply, PCE Price Index, Retail Sales, Savings Rate
  10. CPI Indicates" rel="bookmark">Money Supply and Economic Data Weekly Watch – Deflation Is Worse Than CPI Indicates

    Last week’s eco­nomic data is under­es­ti­mat­ing defla­tion. On Wednes­day the Bureau of Labor Sta­tis­tics (“BLS”) announced that the con­sumer price index (“CPI”) declined by 1.0% in Octo­ber which was the biggest sin­gle one month reported decline since before World War II. Broad based defla­tion exac­er­bates the already severe credit cri­sis and increases cash hoard­ing by […] [read full story]

    Posted in: BANKS, BLS, Business Environment, CPI, Credit Crisis, Deflation, Economic Statistics, economy, Federal Funds Rate, Federal Reserve, Finance, Fiscal Policy, GDP, Inflation, Liquidity Trap, M2, monetary policy, Money Supply