US Monetary Base M3 is Decreasing

US Monetary base M3 is decreasing by 9.6% – Not a good sign

Monetary base (money supply) has 3 components – M1, M2 and M3. However, USA has stopped publishing its M3 data since several years now. But still from the level of M2, we can calculate M3.

Right now M3 is declining by 9.6% which means that the US Economy is going to see double dip recession which will be of deflationary type.

President Obama and Bernanke are planning to print more US $ 200-500 Billion out of thin air to save the US Economy and larger banks and corporations.