Friday, 21 November 2014

The Short Version of the "Austrian" True Money Supply (TMS), as of 10 November 2014

The short version of the Austrian True Money Supply for the U.S. increased 0.49% on last week for the week ending 10 November 2014. At $10.4324 trillion, a new high for the second week in a row, the money supply is now up $549.1 billion, or 5.56%, year to date.


The 1-year growth rate increased sharply for the week to 7.29%, up from 6.57% last week and the highest reported for five weeks. The growth rate however remains significantly lower than the 8.30% longer term average since 1980 and has plummeted since the +10% growth rate reported in early 2013.


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Components of The Short Version of The Austrian True Money Supply




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The Austrian True Money Supply
This weekly publication is based on a short cut version of the Austrian True Money Supply as some components are published on a monthly basis only and as the difference between the short and the "full" version is negligible. The two series can be compared as follows (as of October):



As the the charts demonstrate, the two series are close to identical on a monthly basis. It is also interesting to note that, on a monthly basis, both series expanded at the slowest year on year pace in October since November 2008. This observation should be viewed as an important supplement to the weekly comments in this report as it serves to further highlight the declining growth rate in the Austrian True Money Supply.

For monthly comments on the money supply, I suggest you have a look at the writings of Michael Pollaro. His latest report can be accessed here, here are two charts from that report: