M2, Up 19 Out Of 21 Consecutive Weeks, Hits Fresh All Time High Of $8,809,200,000,000
And once again we are back to discussing just how the Fed does "not" print money... Or does it? If the data from the just released M2 is to be believed (which is becoming near impossible now that even critical economic data is gamed merely to achieve policy goals - today's NFP number was nothing more than Obama's way to get his desired UI extension; look for a surge in the December NFP numbers as the spin machine picks up back on the economic recovery trope), the $1 trillion in Fed excess reserves continues to trickle into broader currency aggregates. To wit: last week M2 grow by $10.3 billion, which is a fresh all time high of $8,809.2 billion (this was at $4.6 trillion at the beginning of the decade). This more cheap money that is increasingly making its way into commodities and risky assets. For now it is a trickle. Soon, it will be a flood.
Probably more interesting are the components of the M2. As can be seen on the chart below while the last week saw a rather normal move in most M2 components, the two weeks prior exhibited some seismic shocks, with tens of billions of demand deposits and savings deposits flip flopping for no apparent reason. If anyone has any idea what may have caused this major shift in M2 components in mid November, we would be delighted to hear.