Using Jan 5 2009 values as point of reference.
Hardly surprising though, this has taken place whenever GDP contracts & unemployment increases as it certainly will this year. I think one would suspect that this could lead to risk of deflationary effects - which I know sounds odd when one thinks and sees first hand the rampant money printing and radical expansion of money supply, and inflation increasing. I am...
MZM money supply is M2 Money supply less small-denomination time deposits plus institutional money funds. Recall that M1 = coins and currency in circulation + checkable (demand) deposit + traveler’s checks & Recall that M2 = M1 + savings deposits + money market funds + certificates of deposit + other time deposits. MZM Money supply is at ATH which generally...
two different perspectives , deflationary crash.
Triple digit $100+ in the next 2-3 years is very possible imo. Correct me if I'm wrong.
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. We are looking at the major US Indexes Dow 30, SPX 500, Nasdaq 100, & Russell 2000 vs each of these types of money supplies As we print more we expect these money supplies to...
Just making an observation that the total amount of currency in circulation (Physical + Bank Credit) has increased an unprecedented 20% in the last 4 months. I believe, when we are looking at this chart, we are looking at a Credit Bubble. Something that bothers me. Current National Debt is around $24.2T, however, we have $18.4T in total dollars in circulation. So...
Gold approaches all time highs against the dollar (and is already at ATH against pretty much every other currency), and some might say the metal is getting a little overheated. But when compared to the money supply (M2), gold has a lot of room to run in the coming years and the chart looks extremely bullish. I believe the strength in the chart is a reflection of...
Economic downturns are usually accompanied (and perhaps prolonged) by a tightening of private credit, as you can see on this chart of S&P 500 performance vs commercial and industrial loans from all commercial banks. Lending significantly lags stock market performance, but a downturn in lending generally confirms a recession, and an upturn in lending generally...
Here we see the correlation of Gold (XAUUSD) and M1 (money supply composed of physical currency and coin, demand deposits etc). During the last two financial crises (DOTCOM and SUBPRIMES), the central bank raised the rates to support the stock market collapse and save the economy from recession. As you see when rates were raised and money supply spiked, Gold...
The chart shows the sharp increase in US "money supply: upon Senate approval of a $2 trillion coronavirus stimulus package Money Supply: There are two definitions of money: M1 and M2 money supply. M1 money supply includes those monies that are very liquid such as cash, checkable (demand) deposits, and traveler’s checks M2 money supply is less liquid in nature and...
M2V most recent data is from December 2019. It is likely near zero at the present moment. Some voices are saying that the Fed liquidity and balance sheet expansion is inflationary, but the charts tell a different story. The velocity of M2 is in complete freefall. We have reached the point where interest suppression is no longer an effective tool for monetary...
Short analysis on importance of ample liquidity ; Series on Equities and the 2020 Outlook: Part (3/4)- 28th Dec 19' 1. Naturally, there's a constant growth in money supply. Part of it ends up as investments in stocks. Hence, it is useful to look at the ratio between money supply and the returns on the market to assess the relative value of the market. This...
"Monetary Base is the sum of currency (including coin) in circulation outside Federal Reserve Banks" -St Louis Fed The amount of money pumped into circulation since the great recession is discussing. Asset inflation is making things worse. Buy Gold Buy Bitcoin
As presented. Interesting to see that we have regained 2008 value, net of money increase.. which is where we have run into resistance.
The Euro is set to rally from here, given the bottom in gold and in the Yen, together with bearish fundamentals for equities odds of this trade increase significantly. Invalidation would be a move under this week's low, for the daily signal at least. Cheers, Ivan Labrie.