fractional reserve banking in australia, page-24

well we can take it for granted that that interest rates will be rigged towards the banks otherwise thay wouldnt be in business. The real problem seems to be the ease with which loans are made, interest rates and asset values increasing and declining. Exponential increase in the M3 money supply seems to be an indicator as demonstrated in the money supply charts of the need for some sort of debt deflation. I wonder what a good ratio of M1 and M3 a Federal Reserve should try to maintain is and where these charts will end up when they it bottom. I wonder how closely it will follow the stockmarket in terms of %?