The inflation/deflation question puzzles me with data like these. I follow the M2 multiplier more than M1 but the data are suggesting hyperdeflation - and ultimately a major decline in the stock and bond markets. If the FED was not pumping money into the system by purchasing private debt (specifically mortgage debt), the stock market would be in the tank. Its all artificial and theater at best but then, they are creating new money – but its only going into the hands of a few – and the many are further in debt with no way to continue to service debt much less retire it. Until lending long is profitable and predictable, and debt can be both serviced and retired, I don’t see this market as anything more than a historic and potentially catastrophic bubble. There is no historical precedence for a central banking system purchasing private debt at any percentage of GDP and long term economic stability and predictability. The M2 multiplier is lower than it was during the great depression. How can this sustain a continuously rising stock market?
https://fred.stlouis...org/series/MULT