W. wrote:
For some figures, etc. seldom announced by the 4th Estate check out www.informationclearinghouse.info.
Marty's response:
W., there isn't much in here of import that I, or any newspaper junkie, isn't aware of to some degree. That's not to say there isn't much to be appreciated or much that should be in the popular media. What does concern me, is that even commentary intended to translate the arcane economic lexicon, i.e., Bernanke's remarks, for the less financially sophisticated of us, is no more edifying than a typical WSJ article. And, of most WSJ commentaries having to do with hard financial data, as reported by various govt agencies or the Fed itself, the Journal hardly ever challenges the spoon fed data. I've had a hard on over this for years and attempt to keep track of certain financial data myself, irrespective of what is reported by govt. For example, without detailing specifics for the moment, how many people would agree that inflation is only 2.8% or 3.1% annually? How many consumers compare the overall rate with the core rate, or even know the difference? No one needs an econ degree to have an opinion on these questions which, in my opinion, are probably closer to the true figures of 5% to 7%. Of more concern to me are the data that NO ONE mentions or writes about, particularly the money supply and nonborrowed reserves. M3, as the total money supply was once characterized, is no longer even published by the Fed, rather odd in that the prime mission of the Fed is maintaining a stable currency. My running calculations indicate money supply is growing at the rate of 15 +/-% annually..and if the past 2 months of growth continues, the rate will hit a new record of 16%. This is extraordinary. Look for a reversal of Fed cutting policy within 6-12 months and an ensuing battle against inflation. In the meantime, nonborrowed reserves (total reserves minus borrowed reserves), are currently in negative territory, having gone from +$45B in early December to -$20B by Feb 13. Credit markets will not loosen up as long as banks are still tapping the Fed discount window and term auction facilities (TAFs) to the tune of $20B/mo. The industry stigma of this need is no longer, everybody is doing it. In a nutshell, banks are becoming insolvent. These are dire situations practically without precedence, yet we hear none of this in either the main stream or alternative media. Ominous.
Interesting news item: Today, Sunday, the UK govt announced the nationalization of one of the largest banks in England. Northern Rock, known colloquially as "The Rock", has been the object of a private takeover by several groups but no one could get the financing necessary to pay back the $49B the govt pumped into the Rock in an attempt to save it. Billionaire socialism at work, and, it can happen here too.
M.
