Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

M2 is exploding higher

[Torontojay]

Janet Yellen's strategy of borrowing t bills is going to backfire and let me explain why. She borrowed her way to finance the government with pandemic created liquidity. In doing so, the government has to pay all its debt holders back in interest and return back its principal. This creates new money in the form of M2. In other words, she is accelerating the growth in the M2 money supply by creating additional money when interest is paid back. Think of a retired person that was collecting 5.5% interest on short term debt and then using that extra money and spending it in the real economy. This slows down the disinflationary forces that the Central banks are trying to regulate. In any case, M2 is exploding higher even with the Fed currently running QT. Why does this matter? It matters because the growth rate in the money supply dictates where inflation is going with a lag of about 12 months. Keep in mind that the growth in M2 is a coincident indicator and has nothing to do with Trump tariff policies. This is real time money growth and has everything to do with the current administration. 

https://fred.stlouisfed.org/series/WM2NS

[garyreins]

If what you said is true it shows government is complicit in this CPI sham for an agenda