M2 Money Supply & Labor Force

As the chart clearly shows more deficits more debt more money supply has not translated to an increased
labor force participation. I am sure you have heard Politicians & Economic hacks like MMT (Modern Monetary Theory)
use the words "Simulate the economy with deficits". Well in reality there hasn't been much "Stimulating" going on for
the labor force participation. Clearly, the only thing deficits "Stimulate" is either Inflation in the productive economy or
Asset Price Inflation in the unproductive economy.

Since 2019 the money supply has increased by an unbelievable 40% resulting in inflation in the productive economy.

Why does this matter to you as an investor? Knowing where the money is flowing or not and at what rate on a macro
greatly improves your investment decisions. While this is only one piece of the puzzle and not by any means the holy
grail chart it is important on many levels not just trading. The next time you hear a politician say we will "Stimulate the economy"
you will know the truth.
Beyond Technical AnalysisChart PatternsFundamental AnalysisM2M2SL

Real Macro Economic Investing
patreon.com/Realmacro
Również na:

Wyłączenie odpowiedzialności