BANKRUPT WORLD

Global crisis just around the corner

The end of the publication by the American Federal Reserve of the M3 monetary aggregate (and that of other components) will destroy transparency on the US dollars in circulation worldwide.
The decision has been vehemently criticized by economists and financial analysts,

[Monetary aggregates (M1, M2, M3, M4) are statistical economic indicators. M0 is the value of all currency - here the dollar - that exists in actual bank notes and coins. M1 is M0 + checking accounts of this currency. M2 is M1 + money market accounts and Certificates of Deposits (CD) under $100,000. M3 is M2 + all larger holdings in the dollar (Eurodollar reserves, larger instruments and most non-European nations' reserve holdings) of $100,000 and more. The key point here is that when the Fed stops reporting M3, the entire world will lose transparency on the value of reserve holdings in dollars by other nations and major financial institutions.
Speech at National Economists Club, Washington DC, November 21, 2002.]