M3 Money Supply Increasing at 15% Rate

Remember our leading indicators MER and FCX? Both remain bullish on P&F chart.


"Whether we are in a recession or not is irrelevant because we are slowing down, and results are becoming more negative. The Federal Reserve has been very much aware of this and has been acting consistently in that regard. They've been increasing the money supply at a much faster rate than people realize, near a 15% annual rate of increase in M3 [a broad measure of the money supply].


What would be more typical growth in M3?

Five percent, maybe. Increasing the money supply kept the situation from getting worse faster than it would have otherwise." Interview with Joseph McNay, Chairman, Essex Investment Management (Barron's Monday Feb 4.0)

This rapidly increasing money supply coupled with declining interest rates virtually guarantees inflation accelerating and is bullish long term for gold stocks and oil.