by themadamerican1
Ok. M2 is negative by a lot. Data apparently(haven’t check myself yet) suggests that the last time was the 30s. That’s real money, greenbacks in the people’s hands and in bank accounts.
The markets are sitting on a free flowing well of FED printed money. At roughly 100-106 billion a week straight to the banks. And that’s just one vehicle.
Follow me here. I have been thinking that we’re going to end up with hyperinflation because of all this spending on an already tapped system. 90% of my knowledge here comes from our very own Peruvian Bull. I’m addicted to his words lol.
I read previously that some were thinking stagflation was more likely but that didn’t make sense to me because of all the printing. How can we be short on greenbacks but print more than ever. This morning I think I had an epiphany.
Real money is going to go through stagflation or even deflation but markets are going to go into hyperinflation. It’s been discussed earlier that the stock market and the real market are 2 very different things since the money injection switched from going to the people to going to the banks circa great financial crisis. Now the money all goes to the markets and the only money the people get is from their paycheck as only a small percent play in the markets and a much smaller percent do it successfully.
We have 2 different economies that are going to experience polar opposites as it relates to Monetary conditions. The stock market economy with hyperinflation and the real world economy with deflation.
Thoughts?