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Reply #34: MOGAMBO GURU: "Hold It Right There Mogambo, You Stinking Pervert!" [View All]

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Tace Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-16-05 09:19 AM
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34. MOGAMBO GURU: "Hold It Right There Mogambo, You Stinking Pervert!"
snip

-- A lot has been made of the cryptic Federal Reserve press release that simply read, "On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release."

I am not, as you would expect, all that upset. For one thing, they are still going to report the components of M3 money supply in the quarterly Z1 report (so they say). And for another, the stuff that make M3 out of M2 is the addition of very large time-deposits and other things that are, in reality, very illiquid. So, I can understand them making the argument that something so illiquid is NOT part of the money supply. It is, instead, an asset, not money. So not reporting M3 is, arguably, a non-event, since they are still reporting M1 and M2.

But, then again, the essential paranoid Mogambo (EPM) asks, "Why now?" And I SURE don't like the non-reporting of repurchase agreements, which ARE money by the very fact that they are repos! That is the whole freaking point of repos! So maybe I was wrong, because now I really AM starting to get steamed up about this non-reporting crap!

Robert McHugh is not amused at my naivet, and says, "Why? It's simple, really. So that the Plunge Protection Team can hide its market manipulative, equity buying activities. You see, one of the key differences between M-2 (which it appears they will report) and M-3, is repurchase agreements."

more

http://worldnewstrust.org/modules/AMS/article.php?story...
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