Speaking of weak wage and salary growth, no explanation is required for the charts at the links above.
“Calamity Janet” will get her BIG chance to prove her bona fides as a highly capable fat-fingered ZIRP bank reserve printer sooner than most anticipate.
How much this time? $3 trillion more? $6 trillion? Pick a number, any number.
According to St. Louis Fed, the Monetary Base has halted it’s $100 B/mo growth and as of Jan, added just over $10 B/mo…bout to go negative??? Big change in trajectory since November…prior to taper $10B (now $20B/mo taper)??? Somebody draining the pool???
click on 1yr or 5yr chart to see big change
During periods since ’09 when the monetary base was flat, equities have been down / flat and then lifted by anticipation of QE / QE execution. If this pattern holds (particularly w/ record leverage) stocks bout to get clobbered.
Also notable is that golds big upside runs happened during the flat periods or QE runoff periods…
One month is hard to gauge causality.
But definitely worth watching.
Thanks for pointing it out.
here are the last five months…after growing consistently by about $100B/mo all ’13..Novembers growth was $31B, Dec $13B…and likely going negative in next month???
2014-01: 3,749.462 Billions of Dollars
This slowdown is way in excess of tapering and looks more like reverse repo’s kicking in???
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