St. Louis Fed: Latest Monetary Trends

Someday this report will be, or should be, included in the history books. Two charts in particular are very pertinent to the here and now… The first being the Velocity chart:

This is exactly why the stimulus and money creation has no effect. Money that is created is needed and used to service or pay down the massive debts. MZM is the broadest measurement of money supply and a velocity of 1.5 is DEAD. This is exactly what you would expect to see in deflation and the current number coupled with the PPI and CPI data are beginning to look like we’ve entered a deflationary spiral.

The next chart of immediate importance is the chart showing the Price to Earning’s ratio of the S&P 500. The ratio is spiking because earnings are collapsing – COLLAPSING, as in HISTORIC. Market bottoms do NOT occur at P/E’s in the 50’s! They occur at P/E’s less than 10.

Below is the entire release. The charts regarding required reserves and reserves are pure FANTASY. The banks have no, as in ZERO, real reserves. What they have is borrowed money lent to them against worthless collateral. The rest of the report shows economic history being made:

Bonus chart:

About Nathan A. Martin 120 Articles

Nathan A. Martin is President of Wingman Investments, LLC, and author of the book Flight to Financial Freedom – Fasten Your Finances. He sees people, both young and old, facing a new era where they are forced to be responsible for their own financial success or failure. His message is clear; become financially literate or be a victim of the external forces that are impacting everyone. Nathan possesses an undergraduate degree in Professional Aviation and Business as well as a Master’s degree in Aviation Management and Operations.

A former Air Force and retired airline pilot, his flying took him the world over participating in many operations including the invasion of Panama, and combat time during Operation Desert Storm. Experience has come over 26 years of flight - logging more than 12,000 flight hours both civilian and military, and as the owner of a corporate aviation management company whose focus was aircraft efficiency.

Influenced by his parents entrepreneurial activities, Nathan began his business and investment training early in life and has used that knowledge every step along the way... from business school to his own corporations and personal investments.

Visit: Nathan's Economic Edge

Be the first to comment

Leave a Reply

Your email address will not be published.