Saturday, May 3, 2014

M6 unchanged

M6 03/31/14 04/31/14
M2 11,149.5 11,191.30
Public Debt 12,616.9 12,493.70
Fed Owned -2,311.5 -2,350.30
G30 stocks 7,128.9 7,242.60

28,583.8 28,577.3


M6 is down slightly, but it is so close and there are so many uncertainties that it is a statistical dead heat. I don't think anybody reads this blog, and I write it for my own enjoyment.    But in case anyone is reading this and is curious, M6 is my own measure of the money supply. I include stocks because they serve somewhat like money, being easily liquidated (unlike real estate).  Also, QE goes into stocks.  And when stocks decline, there is a tendency to counterbalance this by growing the national debt.  I would include corporate bonds if I could find a way that makes sense.  Ideally, you would want M6 to grow about 0.5% per month, but one month of flatness doesn't really mean anything.  The biggest reason this was flat was because of people paying their taxes, which shrank the national debt slightly.

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