Tuesday, November 15, 2005

Important: Discontinuance of M3 Reporting

This is straight from the Federal Reserve itself. See http://www.federalreserve.gov/releases/ for original and more.

M3 is the quantity of unbacked fiat currency the Federal Reserve pumps into ciruclation. The more fiat currency they print, the less what we have in our hands is worth. (See Part Two of my article, "Our Money System and Its Architects" forthcoming on Breaking All The Rules and probably elsewhere for my hopefully comprehensible explanation of fractional reserve banking.)

The Federal Reserve Board of Governors has decided they will no longer report the M3 as of March, 2006. Afterwards no one will have any way of knowing how much money they are printing to bankroll out-of-control federal spending. Once this happens, no one has any way of making a rational determination what our fiat dollar is really worth.

The risk: investors will (very sensibly) withdraw support from the dollar because it will be totally unreliable as currency. What could follow is the kind of financial meltdown many of us have been predicting--specifically Devvy Kidd. We could be looking at economic Armageddon.

Suggestion: cash in any savings bonds you have. Get out of stocks. Buy gold and silver. Do not trust the government to make good on any currency devaluation or honor savings bonds or other government bonds. If I learn more I'll follow up.

Release Date: November 10, 2005
Release dates | Historical data | About
Discontinuance of M3

On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.

Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).

Statistical releases

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