Monday, March 26, 2012

M2 Velocity at Historic Low

M2 money supply
The M2 velocity is at the lowest it has been since records have been available dating back to 1959. The 1.594 number represents the Gross Domestic Product (GDP) divided by the M2 money supply, coins, cash, checking, and savings.
Translated there is a whole lot of money in the system sitting idle, doing nothing. Obama is the all time king of killing a nations appetite for spending. The ultimate buzz kill in the history of mankind.
The problem will be if Obamacare is repealed, and Mitt Romney is the likely next president, will all the idle cash stuffed away at the Federal Reserve, T-Bills, create a stock market boom, inflation, and final fiat monetary bust…
Or does the Federal Reserve keep pumping trillions of counterfeit dollars into this zombie economy hoping for a Keynesian miracle…
Inquiring minds certainly are paying attention to the historic financial times we live in.

Money Zero Maturity sitting idle waiting for the financial train wreck known as Obama and Ben Bernanke to exit stage left
‘Money Zero Maturity – MZM’
A measure of the liquid money supply within an economy. MZM represents all money in M2 less the time deposits, plus all money market funds.
MZM has become one of the preferred measures of money supply because it better represents money readily available within the economy for spending and consumption.
This measurement derives its name from its mixture of all the liquid and zero maturity money found within the three “M’s.”

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