M2 Money Supply has just hit its highest level (M/M annualized increase, seasonally adjusted) since the post September 11th, 2001 period.
The Federal Reserve is increasing liquidity as a cushion to offset upcoming rate hikes. Inflation fears led M2 growth to slow Q4 2003 and early 2004. Liquidity increased in February, March and April ~10% (month over month annualized) before spiking in May to the highest levels since the post 9/11 period.
May M2 Spike (m/m annualized)
Source: Dallas Federal Reserve
In addition to the usual gyrations, Money Supply seems to spike every 4 years — just before the Presidential elections; Call it a perk of incumbency . . .
Random Items:
Housing values starting to show signs of cooling
Why interest rates will climb
A hidden menace
What Should President Bush Learn from President Reagan?
Paid ‘ads’ for song plays revive payola memories
Meet Joe Blog
Quote of the Day:
“Investors operate with limited funds and limited intelligence, they don’t need to know everything. As long as they understand something better than others, they have an edge”
–George Soros
