Thursday, January 17, 2013

Monetary Base So. Close. To Breaking. Out...

The weekly update of the monetary base shows that QE is finally starting to show up on the Fed's balance sheet.  The base is very close to breaking out to a new high three full months into QE3.  As a reminder, one of the reasons we pay such close attention to the monetary base is that it's been highly correlated to oil and gold prices since QE began in 2009.

Base Money Supply Price of Oil QE

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