It seems like the government stimulus bill news is messing up my shorting schemes in the short term. It's amazing how the Nasdaq can continue to approach the Singularity like this. You'd think we'd run out of money to dump into it eventually. I divided TQQQ by the M1 money supply and it seems like there might be some sort of ceiling. Or it could just go to...
Inflation rate timeline because TradingViews does not have this data. Feel free to verify on your end and let me know what you think. ------ Inflation Rate: 1972, 3.27% increases to 1981, 13.55% Inflation Rate: 1986, 1.90% increases to 1990, 5.40% Inflation Rate Peaks in 2008 at 3.84% M1 and M2V both rise in 2009 - 2011, Inflation Rate increases from -0.36% to...
I LOVE FRED CHARTS M2 velocity, 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 is the number of times one dollar is spent to buy goods and services per unit of time. If the velocity of money is increasing, then more transactions are...
Gold has to go up as the fed undervalues the USD
There are lot's of people claiming that an expansion of the balance sheet (M1) does not lead to an inflation of the monetary supply (M2) since the additional reserves created by the Fed can't be spent by the primary banks that receive them. This fails to account for the fact that the financial institutions that sold the bonds to the primary banks (who in turn sold...
Milton Friedman's Money-Supply Rule: Growth of the Money Supply << Rate of Growth of Real GDP = Recession --There is not enough money to buy what has been produced. Growth of the Money Supply >> Rate of Growth of Real GDP = Inflation --There is an abundance of money and not enough goods - prices will rise Growth of the Money Supply == Rate of Growth of...
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 velocity of money is a measure of the number of times that the average unit of currency is used to purchase goods and services within a given time period. The concept relates the size of economic activity to a given money supply and the speed of money exchange is one of the variables that determine inflation.
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...
Blue: M1 money stock. Contains liquid assets unlike M2 Black: S&P500 being artificially propped up by the federal reserve and its "large scale asset purchases" aka money printer. Fed pumped the same amount from 84 to 08 and 08 till now. Entire market is a bubble. Feds experiment is going to pop. Buy Bitcoin
Hello Everyone!!! I am Donald David Dongalore! Earlier in the day, I had promised that I would provide some remedial education! I am doing this because I believe that there is a lack of literacy, with regard to the cryptocurrency space, in the arena of monetary policy and the effect that meddling with a money supply can have! To fully understand what is...
Monthly log chart dating back to 1976. Parabolic in 2012 to say the minimum. How this recession plays out is beyond me. Something has to give. Based on my other charts, a pretty picture is not depicted. Clearly all that excess money supply is in financial assets. Makes sense that as soon as corporations experience an earnings recession while at the same time,...