MML stands for Modern Monetary Lunacy.
M1 money stock is growing at a whopping 357% year-over-year as M1 velocity has collapsed to an anemic 1.22.
M2, a broader measure of money, is growing at 27.1% year-over-year with a dismal velocity of 1.135.
Since velocity equals GDP divided by money, The Federal Reserve had better hope that GDP does increase with the trillions that the Biden Administration is throwing at the problem. But since higher taxes won’t be realized for at least a year, there will be even more money printing.
Maybe Biden, Yellen and Powell watched Parks and Recreation and took it literally. Here is how Biden et al will spend all that stimulus money.
