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Consider that M3 is the looser possible meaning of "money", including rather illiquid instruments such as CDs over $100k, and repurchase agreements, as well as dollar-denominated accounts at banks not under the regulatory oversight of the Fed.

In other words, M3 includes "money" subject to the vagaries of the interbank market. If the 3-month interbank lending market has dried up, what does that mean for your rolling 3-month $150k certificate of deposit? And how about the liquidity of repurchase agreements?

But since M3 is money the Fed doesn't have control over, and largely independent of the Fed's monetary policy instruments, it makes sense that they would want to hide it from view. What makes no sense is that everyone just accepted the Fed's "nothing to see here, move along".

Money supply - Wikipedia, the free encyclopedia

The most common measures are named M0 (narrowest), M1, M2, and M3. In the United States they are defined by the Federal Reserve as follows:

As of March 23, 2006, information regarding M3 will no longer be published by the Federal Reserve, ostensibly because it costs a lot to collect the data but doesn't provide significantly useful data. The other three money supply measures will continue to be provided in detail.

In an effort to reverse this change, Congressman Ron Paul introduced the now expired H.R.4892 on March 7th, 2006, and subsequently sponsored H.R.2754 on June 15th, 2007 which has been referred to the House Committee on Financial Services.

Now look at that! Is Ron Paul the only Presidential Candidate with his eyes on the ball?

Oye, vatos, dees English sink todos mi ships, chinga sus madres, so escuche: el fleet es ahora refloated, OK? — The War Nerd
by Migeru (migeru at eurotrib dot com) on Tue Sep 25th, 2007 at 02:49:05 AM EST
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