Hiding The Data, Money Supply Edition

The recently released Fauci emails revealed what many of us suspected all along, which is that he was lying and grandstanding. The Wuhan Flu probably came from the Wuhan virus lab. Of course it did. That's a good reason why an imperialist dictatorship would have a virus lab in the first place.

The data was concealed to hide the fact that our Elites are incompetent. Why in the world were we sending precious research money to China? Having struggled to get on the receiving end of such money, it boggles my mind to see that it went to a foreign and hostile nation. I'd suggest that we did it because people like Fauci are only fractionally as smart as they think they are.

But did we really send money in the traditional sense? That is, did we send something with a fixed value? No. We did not. And the same self-congratulating Elites who hid the dollars sent to Wuhan are now trying to hide all dollars. Dig this.

• The Federal Reserve has shut down its money supply data as money supply has increased 500% and inflation is a major threat.
• The M2 money supply is up 30% in the past year.
• A financial crisis is coming and fears that they stopped reporting the money supply because they believe they will need to produce even more money to pump into the economy.

That's from Seeking Alpha which can get hysterical sometimes. I discovered what had happened from Scott Grannis' most recent blog post. Scott is not hysterical, ever. 

(W)e will have to wait a few months to see the money supply data. It's not a coincidence, unfortunately, that several months ago (just as money supply growth was beginning to increase yet again) the Fed began changing money supply definitions and ceased publishing weekly M2 data; they now publish official M2 data only about a month after the fact. As a result we have much less information and what we do have is seriously delayed.

Scott's blog is my primary view into the world of finance and investing. His posts are usually a dozen or more charts with explanatory paragraphs. He has decades of experience and a very accessible writing style. I can't recommend him highly enough. Here's the most telling chart from that post along with his commentary.

Chart #7 compares the nominal growth of GDP and M2 over the past 60 years. There is enough money in the wild today to support an enormous increase in nominal GDP. If people decide they are holding more money than they feel comfortable with, the current M2 money supply could quickly translate into a huge increase in nominal prices. In other words, the Fed has already supplied the fuel for a whole lot of inflation if the market's demand for money declines.

As with all economic events, it's not if the market's demand for money declines, but when.

When I finally understood that our universities were ditching the SATs to hide the data about student performance by race, which really screamed about student performance by family structure, lots of things began falling into place. Fauci's emails and the M2 data change are of a piece. It's not that Fauci lied, it's that he blundered and lied to hide it. It's not that the Fed isn't reporting the data, it's that they're trying to hide their mistakes.

If you close your eyes, it feels like a super fun rollercoaster ride at an amusement park. Ditching the SATs and the money supply data is akin to being blindfolded. This isn't terrifying, it's fun!