Visit me on Seeking Alpha where I publish exclusive articles.

Friday, 3 January 2014

The Short Version of the "Austrian" True Money Supply (TMS), as of 23 December 2013

The short version of the Austrian True Money Supply (SVTMS) for the U.S. increased by 0.310% (5.08% annualised) during the most recent week ending 23 December to reach USD 9.8750 trillion calculated based on monetary statistics just released by FRED

The 1-year growth rate in the money supply continued to drop and at 7.01% remains the lowest reported since week ending 1 December 2008. Since hitting 16.10% for the week ending 22 August 2011, the 1-year money supply growth rate has since plummeted by 9.09 percentage points, or 56.46%. During the same period, the S&P 500 stock market index surged close to 57%. This should serve as a warning sign for long term buy and hold equity investors as such a divergence is not sustainable longer term.