Monday, January 1, 2018

Velocity of M2 update

For a couple years now I have been warning that low inflation and in fact deflation could be the name of the game despite a rising base money supply.  The reason?  As the fed pumps money into the system it just gets held to the sidelines because of fear that something bad is coming.  The progress of this can only be tracked and predicted by Elliott waves. 

We could now very well be at the bottom of the 5th wave of this crash in money velocity which began right around dot bomb.  I see the smallest beginnings of an upward curve beginning to form in the chart.  So far it is nothing to hang your hat on yet but given that 5 full waves down have already occurred, the reversal back upward could begin at any time.  Coincidently, minimum wages are rising in 2018 for dozens of states.


Real money is the only way to protect yourself from the realized loss of spending power that is likely coming in fake money.

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