How Are Gold And Money Supply Related?
The comments below are an edited and abridged synopsis of an article by Mish Talk
M1 and M2 money supply numbers are surging. Will gold follow? Mish investigates an alleged relationship between gold and M2, a measure of money supply in the US, and also investigates what’s happening with M1, a narrower measure of money supply.
Up for discussion: A clear correlation; cherry-picking timeframes; a Draghi Q&A; massive QE and inflation; the core CPI declines for three months for the first time ever; lie of the day, month and year; BIS deflation study; asset bubble deflation; the problem is not deflation, it’s attempts to prevent it; struggle to maintain control; speculators dump gold, but the price goes up anyway; M1 versus gold; and where’s the cash.