Yet another indicator pointing to a recession. Like I have said hundreds of times. I’m not saying that it’s going to happen. I’m simply providing the data. If the central banks print more money, the stock market can break previous record highs. If trade issues get a meaningful resolution, stocks can go temporarily higher. But if QT continues, we’re in for mayhem.
It just happened. Global M1 growth just set off a very important signal. According to this indicator, we are months away from recession. With central banks globally engaging in a quantitative easing slowdown and drawback, there’s no way this will end well. Perhaps they are ready to intentionally collapse the financial system to bring in the next phase. This should be interesting.
Global M1 collapse.jpg (625×479)
central bank balance sheet contraction 2.jpg (704×389)
balance sheet shrinkage_0.jpg (890×463)
https://www.zerohedge.com/s3/files/inline-images/balance%20sheet%20shrinkage_0.jpg?itok=FNw_7Kbj
m1 crisis_1.jpg (890×493)
https://www.zerohedge.com/s3/files/inline-images/m1%20crisis_1.jpg?itok=qRMyWtUD
Effective Federal Funds Rate | FRED | St. Louis Fed
https://fred.stlouisfed.org/series/FEDFUNDS
All Federal Reserve Banks: Total Assets | FRED | St. Louis Fed
https://fred.stlouisfed.org/series/WALCL
Eurosystem balance sheet
https://www.ecb.europa.eu/pub/annual/balance/html/index.en.html
How to build a skyscraper out of wood
https://theweek.com/articles/816653/how-build-skyscraper-wood