Velocity of M1 suggests inflation about to be seen.

I've posted several times over the past years featuring the M2 chart and how it is very near the end of a 5 wave down sequence but today I want to flip over to the M1 chart.

I count this as the full retracement of a rising wedge which is a typical thing to occur.  According to CWT that rising wedge is a 3rd or C.  I'm going to assume its a 3rd.  

From there we have 3 waves down that are complete or nearly so.  They have retraced to about the level of the prior 4th.  Again, after the end of a motive wave, the retracement target is the level of the prior 4th.

Do not be surprised to see commodity prices begin to rise right along with the velocity of money chart.  The smart money is buying the hard assets right now because of the ill health of the global money supply.  That money supply is completely unbacked by anything except the word of increasingly desperate governments.  Their only tool for combating credit deflation is debasement of the monetary base.  Credit inflation is temporary inflation but inflation of the monetary base is pretty much forever because this is the mechanism of theft in the con.  It is through inflation of the monetary base that wealth is transferred from those who work a productive job for a living to those who do not.