Friday, 11 April 2014

The Short Version of the "Austrian" True Money Supply (TMS), as of 31 March 2014

The short version of the Austrian True Money Supply (SVTMS) for the U.S. increased by 0.50% (29.94% annualised) during the most recent week ending 31 March 2014 to reach $10.0720 trillion calculated from the latest data published by the Federal Reserve. 

The 1-year growth rate in the money supply fell fairly significantly this week to 6.95% from 8.06% last week, the lowest for 12 weeks. The downward trend in the 1-year growth rate hence continues.

The 12-month smoothed growth rate as a result also fell. At 8.40% it was the lowest since June 2009. At 8.40%, it is now also below the 8.47% long term average. The growth rate has now declined consistently, every single week, since May 2012. Though the growth rate is still significant, a mere slowing down in the growth rate can be very bad news for the stock market.