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Happy $10 Trillion Day

By michaelsch   Follow   Fri, 27 Jul 2012, 3:05pm   275 views   1 comment
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http://seekingalpha.com/article/755871-happy-10-trillion-day?source=email_the_daily_dispatch&ifp=0

Some time ago there was a thread predicting the monetization of all credit. (Sorry, Patrick, it's hard to find anything in your forums nowaday.)

Anyway I do not undersatand how the rapid growth of M2 corrsponds to disappearance of credit. Would anyone explain this?

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1. tdeloco Follow Befriend (2) 11 threads 218 comments San Jose, CA

   1   1:12pm Thu 2 Aug 2012   Share   Quote   Permalink   Like   Dislike   Why the M2 Growth Spurt? (John B Taylor) Based on a scan through the release, it looks to me like demand deposits and savings deposits at banks are the two components of M2 that are most responsible for the recent increase in M2. As such, M2 Multiplier is moving in the opposite direction of the monetary base in lock-step fashion. Money Supply M2: M1 + most savings accounts, money market accounts, retail money market mutual funds, and small denomination time deposits (certificates of deposit of under $100,000). M2 does not represent most of the debt. Perhaps M3, which is estimated at over $50T.