M4 down 0.5% in May

As of 5/31/13:
M2 = 10,541.5
Public Debt = 11,876.1
Fed held = -1883.6
------------
Total (as of 5/31/13) = 20534.0.  This is down 0.5% since April 30.

Fiscal YTD (since 10/1/2012) it is up only 4% from 19749.4.

What does this mean?  That deflation is still going on.  That is one of the reasons why the price of gold is still dropping.

It also means that QE3 is totally ineffective.  It is sucking money out of the economy.  There is no reason to buy treasury bonds if the government is not running deficits.

At least Bernanke is building a profitable hedge fund, right?  Nope, the Fed lost $115 billion in May (3.5%) due to rising interest rates.

Excess reserves continue to rise instead of being lent out.  It is too risky for banks to lend and it is too risky for them to invest in longer-term bonds.

Please Bernanke, STOP.  Get your hand off the money lever and step away slowly.  The system is flooded.  Just stop it already.