hi Dave counter to the M2 chart vs inflation is the M2 velocity...

hi Dave counter to the M2 chart vs inflation is the M2 velocity chart issued by the US Fed showing spending has dried up over last 10 years despite QE and spiking down right here and now. that may be reason why money pouring in to economy with m2 money supply rising.
We have QE still in play to pump up liquidity. but we also have lowest spending by US consumers for last 10 years and actually last 50 years - here and now
even worse than GFC
what does it all mean? what is ahead of us. current spike down in m2 velocity may in fact mean the worst is over and we start recovery which is why commods are running. who knows. i think we are delving too deep as it were.
Also check out TIPS chart if you want which spiked down in 2012 and again last year and corresponds with gold spikes up. then add in qe chart over last 10 years
qe is an unknown. govt reaction is an unknown just here. all creating a feeling of economies out of control which no doubt is good for gold as a safe haven just here
will be interesting to see if inflation plays out as expected or we actually are at risk of deflation with govt out of ammunition to counter it this time. I doubt it but worry i have is markets flooded with money and spending by consumers is still drying up. you can see the battle playing out
yet we have commods at all time highs so no complaints.
to me it means a watchful eye this quarter and reassess each move with chance of some decent volatility.
there are so many other factors in play and i am hopeful of gold this quarter. the producers are moving just here.
it has been a great 10 years for me since gfc. i expect next 10 years to be similar. just need to weather this quarter just here carefully.
words like supercycle and commodity super cycle now being bandied about. makes me smile. everything at highs and now the media is onto it.