The Fed Continues to Pump Aggressively  March 19, 2013 During
the six months since last September's introduction of "QE3", the
Fed has grown its balance sheet by $341B by monetising (buying
with money created out of nothing) mortgage-backed securities
and Treasury securities. Moreover, $201B of this $341B increase
has occurred over the past two months. The recent acceleration
in the Fed's money creation hasn't yet had a noticeable effect
on the year-over-year (YOY) rate of growth in US True Money
Supply (TMS). As illustrated below, at the end of February-2013
the YOY TMS growth rate was at the bottom of its 4-year range.
The bottom of the 4-year range is still high by historical
standards (almost 10%), but our calculation of the current
monetary inflation rate is lower than expected considering what
the Fed has done over the past few months.  We can't be certain,
but the lack of response in US TMS to the Fed's recent
aggressive money-pumping probably stems from the fact that the
US TMS calculation is, by defi