TraderWise

A nice quickie in the Wall Street Journal showing despite the massive monetary explosion created by the Federal Reserve, M2 (a measure of money) is flat lining.  Effectively what is happening is as quickly as money is being pushed into the system, a deflationary debt cycle is sapping it on the other end.  In layman's term, the Fed is trying to keep the bath tub full of water, by pouring new buckets of money inside of it, but all the holes at the bottom of the bathtub are just causing it to leak out.