Friday, February 25, 2011

Adjusted Monetary Base Goes Vertical

Adjusted Monetary Base Goes Vertical

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Just in case there was any confusion in the interpretation of the M2 chart, here is the latest just released Adjusted Monetary Base.
A succinct reminder from Mises Institute: "The Adjusted Monetary Base is the one monetary component completely under the control of the Federal Reserve." As we expected a month ago when predicting the end of the SLP program, look for this chart to surge to about $2.7 trillion as the combination of SLP unwind and another $500 billion in UST purchases adds another $600 billion to the BASE. The increase of $142 billion in the last two weeks is the 5th largest Adjusted Monetary Base expansion in history. The ongoing verticalization of this chart may result in some further acuteness of inflationary expectations.


The Weekly Chart That Needs No Introduction Or Explanation

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