1. Liquidity and Investments:
An increase in M2 typically means there is more liquidity in the economy, as consumers and businesses have more cash or cash-equivalents at their disposal. This excess liquidity can lead to increased investment in stocks, including those in the S&P 500, driving up stock prices.
2. Economic Expectations:
A growing money supply can...
1. Lines representing the money supply metrics for the United States (US M2 - blue line) and the central banks for Japan (JP M2 - purple line) and the European Union (EU M2 - dotted purple line), charted against the left vertical axis as percentages. The money supply data shows a significant increase over time, especially notable during the time period that aligns...
1. Lines representing the money supply metrics for the United States (US M2 - blue line) and the central banks for Japan (JP M2 - purple line) and the European Union (EU M2 - dotted purple line), charted against the left vertical axis as percentages. The money supply data shows a significant increase over time, especially notable during the time period that aligns...
In the first four installments we described an exercise utilizing the momentum in asset classes, the relationship between those classes and the Organization for Economic Co-operation and Development (OECD) Composite Leading Indicator (CLI) for the United States, to anticipate the business cycle and markets. In the last installment we discussed the changes from the...
A lot of money:
USM0 = 5,559,000,000,000
USM1 = 18,320,000,000,000
USM2 = 20,865,000,000,000
USMR = 7.9%
US10Y = 4.935%
These gradations are in decreasing order of liquidity.
M0: Strictly coin & note currency in circulation plus commercial bank reserve balances at Federal Reserve Banks; M0 is often referred to as the "monetary base."
M1: Includes M0 monies...
If you have seen the general news that M2 Money Supply is contracting at the greatest rate in 50 years, then you may be wondering why it is happening and what it means. I hope you do, at least.
Money Supply is a general term that means the total money available to an economy in the form of cash money in the bank plus loans and short term deposits sitting in...
This in the past five years has been a very strong topping signal, I'm not sure if there's much more to add. The platform wants me to add some blurb to meet it's guidelines but what can I tell? The chart speaks for itself. Hope you've found it useful, it's certainly one of many things I have included into my market model.
#MMT Told you that QE is not inflationary. It is simply "Reserves in the banking system".
Then they told you "In an #MMT world...."
Unfortunately, the self-evident data you see in the chart completely destroys their silly little theories and models.
I want to be clear, QE does not increase the public debt. However, it does change the form of money from a bond...
ECONOMICS:USM2 There were four time US money supply trend has changed in last 60 years or so. The 1st one was with the Clinton Govt. with lower interest rate in 90's that started the boom and bust and 2001 recession. This trend starting in 90's changed with similar slope in 2008 when the interest rate went down to 0 after the Great Financial Crisis. This third...
US money supply (pink) has actually steadily increased in percentage terms. It has not risen sharply despite what most people say.
Using a log scale shows the steady rise in percentage terms. If you use an arithmetic scale it looks like things are going parabolic. But you can't compare values from 50 years ago with values today, because compounding over time has...
money money money gotta get that honey money money money gotta get that honey money money money gotta get that honey money money money gotta get that honey money money money gotta get that honey money money money gotta get that honey money money money gotta get that honey money money money gotta get that honey money money money gotta get that honey money money...
