USD

wheres fxtrader @ would like to get his perspective on current events &price moves..i think usdx is gonna move lower but make a higher low ..it slowly wants to move higher but not quite ready yet for a stronger move ..okgl:)..daveo how ya making out these days long, flat or short??gl bro:)

salam

and ur vegetable at exxon korea and saic with capitaine renaud.

Interesting comment on FED reports M2. Yes..the FED does NOT print cash. Not a single greenback. This is most important. The FED is in for deflation, not inflation.

"M2 is one of several money supply aggregates that the Fed tracks.

M0, also called "base money," is the total currency in circulation, including currency maintained by banks as reserves.

M1 includes base money minus bank reservers plus "demand money," e.g., checking account balances that depositors may draw upon "on demand."

M2 is the next level up and includes M1 plus savings accounts and certificates of deposits valued at less than $100k.

The Fed no longer tracks M3, but that aggregate includes all of M2 plus CDs > $100K and other big money institutional accounts.

When considering the growth in M2, I'd like to understand what portion of that growth was actually growth in M1. Before asserting that M3 is growing, too, I'd like to understand what portion of that growth is actually M2 growth. It could be that a substantial portion of M2 growth is due to money moving from M3 to M2.

As much as people talk about out of control money printing, you're not seeing that reflected in the amount of money that is really in circulation. For example, the banks sucked up all of QE1 as reserves, the amount of money in circulation has pretty much stuck to the mean growth line that existed before QE1. QE2 is a different matter: almost all of that money is going leveraged financial speculation, and when you see $40B being added to savings accounts and CDs in one week, you're seeing the "cash" from the sales of financial assets purchases with QE2 money that has been levered up through fractional-reserve lending (i.e., money created out of thin air).

If you look at everything from a practical point of view, you'll see that the banks only have enough currency on reserve to pay for about 110% of what's on deposit in demand accounts, so rising M2 is just creating more claims to the same level of base money. So, looking at M2 to find hyperinflation is kind of silly, as not all of it can be redeemed for currency. What rising M2 tells us, though, is we have inflated prices in financial assets, which is giving rise to what my banker friends call screwflation.