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Comment: the monetary base is SHRINKING

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In reply to comment: Econ 101. (see in situ)

the monetary base is SHRINKING

Can you clear this up......the money supply could be shrinking.....either M2 or M3.....but that would be because volicity would be slowing.......but i don't think the monetary base would be shrinking....unless the Fed was liquidating assets.....shrinking it's balance sheet,which would be draining money from the exactly the wrong time....which is the exact opposite of what they would do....they would want to be adding to the system by buying assets.

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