This is the yield curve as of yesterday. It is slowly increasing on the 30 year Treasury while the short term Treasuries are still quite low. The concern would be that the lack of interest in Treasuries in the long term will continue to drive this up. We will continue to watch this closely.
This is the M2 data since last September. It is still increasing but not as fast as we would anticipate given the growth of the Balance Sheet assets of the Fed. We are still concerned that the ratio of M2 to Fed Assets is still too low showing the hording of cash or just the absorption of cash for bad assets. he lack of Fed transparency makes this quite difficult to ascertain and thus presents a massive risk to long term investments.
Remember that the graph below demonstrates the overall M2 growth as to last week. It shows the exponential growth over the past few years but we see a leveling off due mostly we estimate to the increasing unemployment.
This is the M2 data since last September. It is still increasing but not as fast as we would anticipate given the growth of the Balance Sheet assets of the Fed. We are still concerned that the ratio of M2 to Fed Assets is still too low showing the hording of cash or just the absorption of cash for bad assets. he lack of Fed transparency makes this quite difficult to ascertain and thus presents a massive risk to long term investments.
Remember that the graph below demonstrates the overall M2 growth as to last week. It shows the exponential growth over the past few years but we see a leveling off due mostly we estimate to the increasing unemployment.
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