Zeev's Turnips Patch-No Politics (ZEEV)

[Elroy Jetson]

Let me clarify your statement, "M2 money supply is declining, and has been falling for a while."

Let's look at M2 since January 2004. The black line is the M2 money supply and the red line is the rate of change in the black line.

http://www.economagic.com/em-cgi/charter.exe/fedstl/m2sl+2004+2005+1+1+1+300+1200++0

What you meant to say was, "M2 money supply has been declining for one week". That doesn't sound quite so significant does it.

This also avoids a more important issue.

You apparantly believe the Monetarist delusion that increasing levels of debt indicate strength in the economy and paying down debt indicates economic weakness. If you spend some time pondering this you will quickly understand how irrational this is.