Regarding the observation: "...the U.S. broad money supply is only increasing at a fairly modest rate of 4.8%, a rate that is still far above the increase in GDP."
Q3 GDP grew at 3.7% in "real" terms, up from 3.3% in "real" terms for Q2.
Current dollar GDP grew in Q3 at a 5.1% rate which was down from the 6.6% current dollar rate of Q2.
On a strict extrapolation, US broad money supply is actually growing at a slower rate than the growth in current dollar (ie: 2004 $ terms) GDP, and slightly faster than the growth in real GDP terms.
Real GDP is currently based on a 2000 $ index base.
