Monday, December 28, 2009

Dow Jones vs. the Monetary Base Chart

by Andy Kessler:

Updated again: October 30, 2009 (added 2008-2009 chart to 2009 only chart)

This chart ran along with The Bernanke Market piece that ran in the Wall Street Journal back in July. I thought it was worth updating. The market seems to be following the Fed's money creation. I suspect the market will give out well before the Fed stops printing money.

The monetary base data is from this page at the St. Louis Fed. WSBASE is defined as the "Sum of currency in circulation, reserve balances with Federal Reserve Banks, and service-related adjustments to compensate for float."

Wsbase vs djia 2009

Wsbase vs djia 2008-9
(from Andy Kesler's blog, October 30, 2009)

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