Collapse of M3 Spells Deflation

Collapse of M3 Spells Deflation: "Now, with the news that M3, the “broad” money supply, collapsed by $50 billion in July, we predict that the inflation story is about to go out of style. After all, how much inflation can we have if, instead of credit dollars flooding the system, they are now spiraling down the drain? Money velocity has been falling as well, and although this goes hand in hand with a deflationary contraction of the money supply, don’t hold your breath waiting to hear more about it from Brokaw et al. Money velocity is one of those topics, along with campaign finance reform, that tends to make viewers’ eyes glaze over, and that’s why such data are likely to remain shrouded in mystery, other than among economists. However, the cyclical ups and downs of money velocity are important nonetheless because"

M3 - Shadow Statistics
The Telegraph is reporting Sharp US money supply contraction points to Wall Street crunch ahead.