M2 VELOCITY ABRUPTLY REVERSES (JUST LIKE 2004-2008)

M2 VELOCITY ABRUPTLY REVERSES (JUST LIKE 2004-2008)

THIS IMAGE DEPICTS a chart of the money velocity (rate at which cash is moving through the economy) going all the way back to 1960. Until recently, in a downward trajectory (near historic lows). QT or

QE? You decide.

NOTE THE FAR RIGHT hand side (black circle); this uptrend is ushering in a new wave of inflation. This uptrend is the result of EXCESSIVE DEBT in the form of currency, chasing the same/or even a lesser amount of goods.

SLASHING RATES WILL throw gasoline on this fire and the dollar will

lose purchasing power faster. It could also usher in monetization of the debt. The last time we saw this particular trajectory was 2004-2008.

GREG MANNARINO OF TradersChoice elaborates in the video [comment].

Yesterday was the canary in the coal mine. Consider the thick grey vertical bar on the chart which followed the last major surge in M2 velocity.

<BREAKING> PPl numbers today hotter than forecast, but not excessively so.