M2

From Pantheon Economics

“The Covid pandemic is a disinflationary event, because it has crushed demand. The next stage of disinflation will come as wage growth slows. Next year, when the vaccine has allowed activity to return to normal, the gigantic expansion in the money supply will become a potential inflation threat, but right now policymakers want to concentrate only on the first order threat, which is the damage being done by the virus.”

Above is chat of M2 Money supply dropping in back to back weeks.Now per Nomura’s McElligot he believes the drop in M2 is being put to use in the Economy,A good sign(https://heisenbergreport.com/2020/08/10/nomuras-mcelligott-the-m2-pro-cyclical-signal-may-be-triggering-in-stocks/s ) you can see by Chart back to back weeks of Declines is a rare occurrence, will this lead to Inflation or can we just hope that Money is being pushed back into economy and hopefully give recovery a needed omphh…

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