Monetary base expands

[krakknisse]

I seem to be harping on this. But the latest Fed H3 statistics are out:
Released Oct 23, 2008:

Numbers for Oct 22 (provisional) indicate the monetary base expanded to 1,143,873 million dollars. The monetary base has been around 820 billion for a long time. This is up 16% from 984,712 million on Oct 8 (126% annualized),

No major changes in non-borrowed reserves (Sept 24: -158,343 million, Oct 8: -363,145, Oct 22: -362,550).

This jump in the monetary base is quite significant. Updated charts on FRED, the BASENS series:


or, as year-on-year change:


The other, longer-term monetary base series are updated monthly and go back to before 1940. Let's just say that this rate of expansion in the monetary base hasn't been seen since the 1930s and 40s.

[bpr]

Re: Monetary base expands

EDIT: sorry, didn't read closely enough:

AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE

Thanks.

[D-Mack]

Re: Monetary base expands

at least we aren't in a recession

[phirang]

Re: Monetary base expands

1) doesnt matter if no one is lending
2) the fed can just as easily suck the money back in.

[Guest]

Re: Monetary base expands

The USA is a very well run country. We run a tight ship over here.

1) doesnt matter if no one is lending
2) the fed can just as easily suck the money back in.

[GRG55]

Re: Monetary base expands

1) doesnt matter if no one is lending
2) the fed can just as easily suck the money back in.

Suck the money in, eh.

Let's accept that Bush is firmly in pull-the-string-look-at-me-talk mode. And also that Bernanke is now in Paulson's pocket. Nevertheless, it takes a hell of leap to accept that these people are willing to take the political heat for flushing what's left of the global economy down the drain. That's the sucking sound that will be loud and clear to everyone if Bennie dares to even suggest he's going to "easily suck the money back in".

You give the Fed far too much credit for what it "controls" and what it can do.