M2 Velocity is starting to increase due to deposits and M2 removing from the US system back into the economy (this indicates inflation is coming back harder) (this is an internal run on the dollar) (hence Gold and BTC taking off) SPX adjusted for the M2 is showing the market is undervalued + indicating further stimulus to get economic activity going again...
This will be just insane to watch unfold month by month take a look. Adjust the US GDP to USM2 (Money supply growth) the US has not experienced real growth since the 1999, pretty alarming. Adjusting the SPX to the M2 the SPX has actually not experienced growth either. Forced to sanction the Russian Ruble (creating an excuse) to stop Russia gaining an...
In this rough draft of an idea, I naively try to figure out the effect of the immense money printing, and the "true" value of inflation. After BIS came out talking about the hidden debt, I began thinking about the "hidden" money. With such low money velocity, we cannot possibly feel the real effect of all that flood of money. I am amazed from this chart. Mainly...
Market shocks and drawdowns are designed to shake you out. Charts are pointing to continual asset inflation this decade. #DOWJONES to $64,000 was a general target I had in mind a few years ago. NOW we have confirmation this could indeed play out over the coming 5-7 years #FTSE100 to break 10,000 and indeed we have a target of over 12,000 #DAX to...
This is a pretty bleak chart illustrating how printing more bad money is not the solution to a broken monetary system. The FRED:M2 can be seen gradually increasing at around a 30 or so degree slope until about 2011 onward where it becomes steeper... then at the beginning of the pandemic -- it turns parabolic. During the same period you can see the FRED:M2V ...
v2.1 - Update broken chart due too trading view changes. The global loosening cycle is coming starting with china and soon the Fed in the USA will drop the mirage of tightening conditions. (IMO) Go long in select area with my personal favorite towards commodity exposed value stocks.
The explanation will be broken into several parts below: You see what I see. M1/M2 Velocity collapsing while Fiscal Policies become far more extreme in nature. Profile and Structure are comprised of a great many observable metrics. Volumes are wafer thin. Gamma squeezes are, on balance, failing. Calls are what has driven volume, Stops at levels are being used...
#Inflation is cool if you are close to the money printers. I am directly attached to crypto money printers (a form of mining) by buying #HEX shares in the savings pool. No need to #trade (but you could with a small % of your stack)
Looking at M2 it looks incredibly Inflationary but where exactly is that Inflation? So I had to dig deeper, if you look at M2V, the Velocity of M2 or in easier terms, the number of times that the average unit of currency is used to purchase goods and services within a given time period, you will notice a sharp decline in M2V accelerated by the pandemic crisis. Now...
Hi everyone, I am doing some self study and have created the graph above. using the equation of exchange M*V=P*Y I have calculated 1/Y. M = Money Supply V = Money Velocity P = Price (S&P index value) Y = Real Output/Value Keeping the above in mind I calculate 1/Y (inverse because chart is easier to look at) 1/Y = 1/(M*V/P) Adjusted Value =...
M1 = coins and currency in circulation + checkable (demand) deposit + traveler’s checks. M2 = M1 + savings deposits + money market funds + certificates of deposit + other time deposits. The velocity of money is the frequency at which one unit of currency is used to purchase domestically- produced goods and services within a given time period. In other words, it...