The Federal Reserve quietly announced on December 17, 2020 that it is redefining the M1 and M2 Money Supply Measures (H.6 Release) by shifting the savings deposits component into M1 from M2. M1 is supposed to measure “demand money”
Well, it’s been a year like no other in so many ways. “Unprecedented” is an often-overused term. But there truly is no precedent for much of what transpired in public health, politics, the monetary system, the economy, and markets.
Major-gold-ETF-holdings troughs are an important confirmation that gold’s correction has yielded to the subsequent upleg. While GLD+IAU holdings haven’t decisively carved their latest, they are moving in that direction.
A new nominal high in silver will just be the first major milestone in a bull market that could go up many multiples from here before being expensive or overvalued in real terms.
Gold plays a duel role as a commodity and as a monetary metal which makes it important to keep a close eye on. During the early stages of a commodity bull market Gold will generally lead the whole complex higher.
As we descend into the Twilight Zone, the major stock indices made new highs this week, showing, once again, that fake money encourages fake prices. Stock market capitalization reached an all-time high compared to GDP. 1929 and 2000 peaks come to mind….
The combination of the high-profile coronavirus bill with this year’s omnibus spending bill has brought new attention to Congress’ practice of funding the government via massive, unread appropriations bills.
John Titus of Best Evidence has produced a must-watch video which explains how the Fed has, in effect, printed $6 trillion, or double the $3 trillion to which the Fed admits.
