Paul Questions Bernanke on M3, Inflation

[G2099]

Paul, known as a congressional expert on monetary policy, reminded Mr. Bernanke that inflation is always a monetary phenomenon, resulting from an increase in the money supply as ordered by the Fed itself. M3 has risen more than twice as fast as M2 and GDP in recent years, illustrating that real inflation is much higher than the government admits through its CPI statistics. The troubling possibility is that the Fed discontinued M3 for the simple reason that it wants to conceal the extent to which the money supply- and hence price inflation- really grows.

Paul is preparing legislation that will compel the Fed to continue publishing M3, and plans to introduce the bill in the Financial Services committee later this month.

http://www.house.gov/paul/press/press2006/pr021506.htm

[BadgerKid]

1. I have read that elsewhere

...not only to hide the real inflation amount, but also to conceal the information from adversarial countries. It's also in time for the start of the oil bourse in March. I'll try to dig up some links and post if someone doesn't first.

[TheUnspeakable]

5. A caller on Mike Malloy a few nights ago...

was talking about these two events coming at the end of March-(discontinuing the m3 and the bourse opening) he said it will be like two comets hitting the earth at the same time. Another caller said the effects will be devastating-quote "get ready to fill your wheelbarrow up with greenbacks to haul off to the store to buy a loaf of bread"

[FloridaPat]

2. He sounds like the person asking Bernanke questions when I watch

the questioning. Bernanke said the real reason they were getting rid of M3 was because no one was reading it and it was an imposition on the banks. The congressman said he read it and wanted the report to be kept.

[mdmc]

3. m3

:kick:

[Jane Austin]

4. That's a press release from Ron Paul, so it's not surprising that

it starts out "Paul, known as a congressional expert on monetary policy . . . ."

In other news, JaneAustin, known as a top American breeder of Golden Retrievers, has logged more than 3000 posts on Democratic Underground.

See what I mean? :))