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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 378.35+2.7%4:00 PM EST

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To: TobagoJack who wrote (64545)7/3/2010 7:40:55 AM
From: carranza2  Read Replies (1) of 217651
 
The US money supply data continues to look deflationary

M2 has gone up a bit while MZM is still trending down.

MZM is moolah of zero maturity, essentially cash that is in money market funds, your wallet, your bank accounts, etc. M2 is a bit more difficult to understand - for me - but is basically the money supply less bank reserves.

Of course, neither measure velocity, a critical aspect of things if you measure inflation by rising prices, which is controversial because inflation according to the smart guys is a monetary phenomenon.

Point being, growth in M2 means we may be seeing the first green shoot of inflation.

With the Fed no longer stimulating, I don't know how M2 could have risen, but it did.
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