The Adjusted Monetary Base: June 11, 2009
June 15, 2009
The adjusted monetary base moved up rapidly, beginning in September 2008. It has slowed in the last two months.
This means that the FED has moved from hyperinflationary rates to merely mass inflationary rates.
If it sticks with this policy, it will turn the recession into a dpression. T-bond rates will soar because the FED is not buying.
The FED is trapped.