Saturday , June 19 2021
Home / Mish's Global Economic / The Hockey Stick Rise in M1 is a Monetary Statistical Mirage

The Hockey Stick Rise in M1 is a Monetary Statistical Mirage

Summary:
Huge Monetary RiskEarlier today I posed a Q&A what if on QE: What Would Happen to Inflation If the Fed Announced Trillion a Month in QE?My conclusion was not even a further quadrillion in M1 via QE would matter.I just added a couple of paragraphs to the post that are themselves worthy of a monetary spotlight update.Please recall my August 18, 2020 post Bond Bull Lacy Hunt Warns of a Huge Monetary Risk (emphasis mine). LH: When the Fed initiated QE1, QE2 and QE3, folks said those policies were very inflationary. There is a liquidity effect of what the Fed is doing, and the liquidity effect can be very powerful over the short term. But ultimately the increase in the money supply did not follow through after the rounds of Fed purchases of government securities because the banks couldn’t

Topics:
Mike Shedlock considers the following as important:

This could be interesting, too:

Mike Shedlock writes The FCC Aims to Stem Robocalls But ATT, Verizon and T-Mobile Say Wait

Mike Shedlock writes Elon Musk Discloses Asperger’s on SNL, Monologue a Flop or a Success?

Mike Shedlock writes Afghanistan Bomb Attack Targets Schoolgirls Killing 25: What’s Going On?

Mike Shedlock writes Biden Comments on the Jobs Report and Gets the Key Message Wrong

The Hockey Stick Rise in M1 is a Monetary Statistical Mirage
Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.