Comment by sfblah
3 days ago
M2 is the wrong statistic for sure, but the thrust of GP's comment is accurate, IMO. Fed intervention has not remotely been removed from the economy. The "big beautiful bill" probably just amounts to another round of it (fiscal excess will lead to a crisis which will force a monetary bailout).
We should be using some kind of weighted total of all the things that get treated as money.
When a company makes a deal in exchange for shares or something, those shares are being used as money and must be included in any currency-neutral calculation of the money supply. However, most shares don't flow like money. You also have cryptos, which flow more than shares but less than government bonds and cash. It could be that the total of all money has expanded, even as the US dollar specifically stabilizes and slightly contracts.