The Shrinking M3(b) -- Deflation or Hyperinflation?

Miscellaneous Current Events
1

Just fishing for opinions on the shrinking M3b:

http://www.bloomberg.com/apps/news?pid=20601110&sid=aqeH4_1kQ0sk

and here’s another opinion

http://seekingalpha.com/article/207368-the-consequences-of-m3?source=hp_wc

And a counter-opinion:

http://seekingalpha.com/instablog/121744-mark-anthony/73464-debunking-the-shrinking-m3-money-supply-myth

Seems to make a good point about the M3b – strange that the Fed stopped reporting the real M3 in 2006…

2

This must have got lost in the shuffle

3

hyperinflation of prices???

i dont see that.

4

There’s so much debt, they’d have to print an awful lot of money to cause price inflation. If Ben Bernanke started printing it and throwing it out of helicopters, people would just use it to pay down their debts; meaning the money wouldn’t be chasing goods and services and causing price inflation.

The real problem is the banks don’t want to lend and people don’t want to borrow. Stagnation is the real problem, not price or money supply fluctuation.

5

If Ben Bernanke started printing it and throwing it out of helicopters, people would just use it to pay down their debts; meaning the money wouldn’t be chasing goods and services and causing price inflation.

Of course, because once money has been used to pay a debt, it’s destroyed.