M3

From the financial dictionary we first must get the definition of what M3 means before we start find an analysis of an important shift in its reporting.

The category of the money supply that includes M2 as well as all large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets.

This is the broadest measure of money it is used by economists to estimate the entire supply of money within an economy.

And now for a short analysis of what it means that the US put and end to the publication of the M3:


“With their decision to put an end to the publication of M3 and other indicators designed to measure the evolution of Dollar ownership worldwide, the US authorities initiated a policy of « hidden monetisation » of the US debt. The Bush administration's incapacity to handle the various deficits (budget, trade) and the related debt will result in a monetary creation of unequalled proportion, leading to a dilution of the American debt in an ocean of Dollars. The process has in fact already started: during the first three and a half months of the US fiscal year (beginning in October), the Federal Reserve has increased by 320 billion USD its stock of currency, that is 5 times more than it did over the same period last year”,