gold, page-24943

@cag

"isn't it so that the usa fed hasn't published m3 money supply info since 2006?"

You are right...

"and that they use m2 which has been increasing every year!"

You are right again...

But there is a problem with M2 as a predictor of inflation. M2 includes commercial bank deposits held on reserve with the Fed. Reserve deposits have increased significantly since 2007 because of quantitative easing. They are now at $2.261 trillion or 17.1% of M2.

Reserve deposits are dead money. They can't be lent and they can't be spent and thus have no capacity to influence inflation.

So some of us who like to know how the world really works, derive our own M3 by stripping reserve deposits out of M2. This give a very different (and much more realistic) view of the factors influencing the inflation rate and the low inflation rate in the US in recent years starts to make sense.

Cheers