4 ms·

I understand what you're saying, but it's worth noting the M1 definition changed in 2020 to "recognize savings deposits as a type of transaction account". > Th

by eddyg 4y ago

I understand what you're saying, but it's worth noting the M1 definition changed in 2020 to "recognize savings deposits as a type of transaction account". > This change means that savings deposits have had a similar regulatory definition and the same liquidity characteristics as the transaction accounts reported as "Other checkable deposits" on the H.6 statistical release since the change to Regulation D. Consequently, today's H.6 statistical release combines release items "Savings deposits" and "Other checkable deposits" retroactively back to May 2020 and includes the resulting sum, reported as "Other liquid deposits," in the M1 monetary aggregate. This action increases the M1 monetary aggregate significantly while leaving the M2 monetary aggregate unchanged. M2: https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL

incomingpain 4y ago
>I understand what you're saying, but it's worth noting the M1 definition changed in 2020 to "recognize savings deposits as a type of transaction account". I have read about this claim. Interesting that they changed this definition at the same time as the pandemic and pandemic stimulus/QE? Why didn't they do it 5 years ago during a boring time while everything was under control? https://tradingeconomics.com/united-states/government-debt https://tradingeconomics.com/united-states/government-debt Gov debt increase ~6 trillion. https://tradingeconomics.com/united-states/central-bank-balance-sheet https://tradingeconomics.com/united-states/central-bank-bala... Central bank about ~5 trillion. Those are separate accounts. $4 trillion missing? It's just a definition change, but the 11 trillion never made it to money supply? Wonder where it went. M2 is looking rather vertical as of late. Still printing more and more eh? Lets assume that I am wrong and it's just a change in definition; afterall who am i but an anonymous name on the internet. If I'm the fed, it's business as usual. Not going to do anything at all about this. Going to sit back and watch inflation climb. 8.5%? No, nothing to worry about. Dont need to do anything. We only changed a definition. Yes, inflation is increasing faster than previous intervals despite hiking interest rates and even repo rate. Nah, nothing to worry about. Nothing to do here at all. I can't wait to see what happens.

by eddyg 4y ago

incomingpain 4y ago

>I understand what you're saying, but it's worth noting the M1 definition changed in 2020 to "recognize savings deposits as a type of transaction account". I have read about this claim. Interesting that they changed this definition at the same time as the pandemic and pandemic stimulus/QE? Why didn't they do it 5 years ago during a boring time while everything was under control? https://tradingeconomics.com/united-states/government-debt https://tradingeconomics.com/united-states/government-debt Gov debt increase ~6 trillion. https://tradingeconomics.com/united-states/central-bank-balance-sheet https://tradingeconomics.com/united-states/central-bank-bala... Central bank about ~5 trillion. Those are separate accounts. $4 trillion missing? It's just a definition change, but the 11 trillion never made it to money supply? Wonder where it went. M2 is looking rather vertical as of late. Still printing more and more eh? Lets assume that I am wrong and it's just a change in definition; afterall who am i but an anonymous name on the internet. If I'm the fed, it's business as usual. Not going to do anything at all about this. Going to sit back and watch inflation climb. 8.5%? No, nothing to worry about. Dont need to do anything. We only changed a definition. Yes, inflation is increasing faster than previous intervals despite hiking interest rates and even repo rate. Nah, nothing to worry about. Nothing to do here at all. I can't wait to see what happens.