These charts are some seriously good stuff that I plotted from Fed data.
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SOME DEFINITIONS
M2 per the Fed (aka FRED St. Louis) is supposed to represent "Household Wealth"
M2 includes a broader set of financial assets held principally by households. Including of course, money in banks that the Fed just gave to them to "digitize their balance sheet" as the Bernank stated he would. Not really Household wealth!M2 consists of M1 plus:
(1) savings deposits in banks (which include money market deposit accounts, or MMDAs);
(2) small-denomination time deposits (time deposits in amounts of less than $100,000); and (3) balances in retail money market mutual funds (MMMFs).M1 is
M1 includes funds that are readily accessible for spending. M1 consists of:---------------------------------------------------------------------------------------------------------------
(1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) traveler's checks of nonbank issuers;
(3) demand deposits; and
(4) other checkable deposits (OCDs), which consist primarily of negotiable order of withdrawal (NOW) accounts at depository institutions and credit union share draft accounts
Hmmm....look at those two ovals in the charts below, do ya think we might have some serious inflation right around the corner?
Do you think that gold might be more valuable to people as money is printed and cash in the bank loses value at over 10% per year?
I have about as much respect for the "Deflationista's" as I do for Barista's, well actually I do respect the Barista's more....working people, performing a desired service.
