Friday, November 30, 2012

Updated Monetary Stats

 The above is the current status of the FEDs total Balance Sheet. Since the run up from 2008 through the middle of last year we saw the rise but for the past year it has remained stable. One must remember that at some time they will begin unloading this mess. That is when we will see inflation.
 The above is the calculated inflation rate annualized by quarter. We see some small amount.
 The elements of inflation are shown above/ No significant trends as of yet.
M2 continues to grow. The rate of growth seems to be fluctuating in normal bounds with no early signs of inflation yet.
Finally the Monetary Base is fixed as well. This means that money is still tight but not tightening.

In summary we are in a strong monetary control period. If the FED Chair is changed we may see almost anything.