Friday, November 1, 2013

M5 up 1.5%

This isn't an exact calculation, because it depends on what dates you use. Plus the numbers keep changing.  But here is a quick calculation as of 10/31/2013.

M2 (as of 10/21/13): 10,989.2
Public debt (as of 10/31/13): 12,187.4
Less Treasury debt held by Fed (as of 10/23/13): -2,106.5
Total:  21,070.1

This is up 323.8 since the 9/30/2013 total, or about 1.5%.  This is pretty high for one month, but this was exceptional because of the increase in the debt on 10/17/13.  My point again is that the public debt never has to be paid back since it is just part of the money supply.  And as long as the annual increase is less than 7% (thus doubling every 10 years), there is no cause for concern.

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