http://ggc-mauldin-images.s3.amazonaws.com/uploads/pdf/OTB_Apr_11_2018.pdf
...The Fed’s monetary tightening is now biting hard. Growth of the “broad” M3 money supply in the US
has slowed to a 2pc rate over the last three months (annualised) as the Fed shrinks its $4.4 trillion (£3.1
trillion) balance sheet, close to stall speed and pointing to a “growth recession” by early 2019. Narrow real
M1 money has actually contracted slightly since November.
This suggests that the reversal of quantitative easing may matter more than generally appreciated. The Fed’s
bond sales have been running at a pace of $20bn a month. This rises to $30bn this month, reaching $50bn
by the fourth quarter. RBC Capital Markets says this will drain M3 money by roughly $300bn a year, ceteris
paribus....
...The signs of a slowdown are even clearer in Europe where the low-hanging fruit of post-depression
recovery has largely been picked and the boom is fizzling out, exposing the underlying fragilities of a
banking system with €1 trillion of lingering bad debts.
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