Reply #50: Be careful watch the baselines for that chart

[happyslug]

The bottom baseline is 800 Billion Dollars NOT Zero (0). This gives makes the monetary base looks low given its was only about 850 Billion and was stable at that level from September 2007 to September 2008 (The Second problem is the short time period of the chart one year in duration, a stable year, so the increase looks huge compared to the relatively stable amount in the year before September 2008). In September 2008 the monetary base shot up to move to about $1500 billion dollars.

Given the high base (800 Billion) on that chart it looks worse then what it is (Not that almost, but nor quite doubling the Monetary base is good, but the bases used makes it look worse then what it would look at a proper chart starting in 2000 and using Zero (0) as a base instead of 800 billion Dollars.

Just a comment on the chart, it shows a bad situation but uses bases to make it look worse then what it would if proper bases were used.