M3 Equals Market

M3 can be viewed in this chart, notice how starting in 1995 the FED decided to take the markets into a bubble, WHY, because Greenspan wanted to defeat the K wave. He has long stated how he would love to be FED chairman during a K wave winter, his ego can be seen in this chart. Also not how they created the bust by taking it away and again how they reflated it starting in 2003.



http://www.davidyu.com/

In this chart we see the PPI, notice how decades ago the K wave should have commenced, however instead via massive money printing the FED created massive inflation. Have they defeated the K wave winter?




http://my.net-link.net/~malexan/STOCK_CYCLES.htm

Now we look at the two major indexes, note here how they have followed the M3 chart. Also I think it is important to note how in the past 2 years even with increased M3 injections the markets have remained flat, why?

What we must ask is why in March of 2006 is the FED no longer going to publish this M3 data when it has worked to keep asset prices inflated. It has also been used to create bubbles in housing, gold, oil and everything else the average man needs in life. It has also created global asset bubbles now. The FED is pulling a fast one, they will decrease M3 this year and hope to control the downside, they must pop bubbles again or risk a collapse of the dollar. The FED and its band of private global bankers are not going to destroy a game that has made them the richest group on planet Earth.

No M3 is going away to try and save the dollar, rein in asset bubbles, rabid speculation and the risk of a financial blowup.

The K wave is about to begin again, can they control the downside once it begins. We shall see, but IMO we will see DOW 3000 before free markets see any value in bloated asset prices. Deflation will and must begin for the sanity of the global economy.

West