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HubbaBuba2
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>US Monetary Inflation Slowdown - Steve Saville - Speculative Investor
Enjoy, and agree w/ much of article - but this is a non sequitur: "Second, the Fed currently pays the same interest rate on all reserves, regardless of whether they are classified as "required" or "excess"." The question is whether the Fed should be paying interest on deposited bank reserves AT ALL. It is a NEWER PHENOMENON - it was only offered post GFC; and the argument against it is it creates a "liquidity trap" since they earn money on something that if they did not the banks may be more inclined to loan ("risk") the capital growing the economy.

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Beginning of the headline :The US monetary inflation rate continues its downward drift. As at the end of December the year-over-year (YOY) rate of growth in US True Money Supply (TMS) was 7.2%, its lowest level since November of 2008. Refer to the following chart for details.Last year's slowdown in US monetary inflation, from 11.4% at the beginning of the year to 7.2% at the end of the year, happened despite aggressive money-pumping by the Fed. That the rate of money-supply growth slowed materially in parallel with the Fe... Read More
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