That’s not the only scary chart. I keep a whole web page of them, and I ain’t seein green shoots.
http://www.futurnamics.com/slfed.php
Worst chart I think is actually money velocity, which has crashed. That’s the reason for the lack of inflation, the economy is just dead.
Of course all this funny money is what’s propping up the stock market, but if the economy ever does get up off it’s back the inflation is guaranteed, too much cash sitting around now
We are watching Weekend at Bernie's II.
My issue is that when the economy does grow again, inflation will be blamed on the growing economy, which is just wrong.
I posted this recently regarding velocity and money supply:
Could recent purchases of food, gold, etc. by countries, e.g., China, be because they foresee the coming inflation storm?
1. Inflation begins modestly.
2. People realize their savings are being eroded.
3. People buy PMs and take possession. Countries begin to buy/sell commodities using PMs instead of dollars.
4. PM prices go ballistic as no holder wants to sell and the secret is out, “there is far more paper PM than physical”.
5. People, corporations, and countries buy anything that will hold value. Capital goods, food, RE, metals, vehicles. At this point the economy looks great! Unemployment down, GDP up, Happy Days Are Here Again!
6. SERIOUS inflation commences as all the fiat savings is spent and velocity goes ballistic.
7. The world economy crashes as governments and borrowers default. At this point, inflation in food and fuel has impoverished the masses.
8. Severe civil unrest as the entitled and those on fixed incomes become much more poor.
9. War? Revolution(s)? Dogs and cats living together? Real Old Testament Stuff?
Just like the book, “This Time Its Different”. Debt and debasement of currencies always end the same way.
My Jedi foresight fails me at that point, but it bodes ill.