ALERT - Sep. 6, 2007

JOHN WILLIAMS' SHADOW GOVERNMENT STATISTICS

A L E R T

September 6, 2007

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Money Supply Growth Explodes

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PLEASE NOTE: The SGS-Ongoing M3 data will be posted this weekend along with publication of a Flash Update. -- Best wishes to all, John Williams


Fed Liquefaction Pushes August M3 Growth Towards 14%


This afternoon's money supply release showed seasonally-adjusted M2 for the week-ended August 27th up by $64.9 billion to $7.400 trillion. M2 now has risen by $111.1 billion for the last two weeks, rising at an annualized fortnight growth rate of 48.2%.

Depending on the large time deposit numbers due for release on Friday (tomorrow) afternoon, annual M3 growth for August could jump to 14.0%, up from July's 13.0%, and up from my early August estimate of 13.6% made last week.

Despite the Fed coming close to its formal 5.25% fed funds target in the last couple of days, the liquidity crisis continues, and the financial markets remain extremely unstable and dangerous. Once again, watch the dollar!

Additional detail will follow this weekend.

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With relocation to the San Francisco Bay Area pending in the weeks ahead, the September SGS now will be targeted for the week of September 17th. An e-mail advice will be made for it and intervening Flash Update/Alert postings.