M2 money supply, inflation, deflation, depression

News is increasingly troubling and confusing.
TV today said government will pay pig ranchers to euthanize millions of hogs because they are too big to fit into slaughterhouses, 333 pounds?…

TV also says government is buying food from farmers to give to food banks where poor people get free food — price zero.

TV also said hamburger meat inflation was over 1000% in a few weeks!

But at the same time gasoline prices are much lower, 1.33 around here, did drop below $1 for awhile.
Many prices unchanged or reasonable,
with copious supplies of many items.

I hear unemployment checks are higher than normal pay,
at least for a while.

Many jobs lost, though,
basically a depression.
Supplies on many items drying up,
and there will be some shortages at the same time there are surpluses.
Very confusing.
Shortages and surpluses at the same time, depending on location and product.
Also
Inflation and complete deflation – zero prices at the same time!

I am struggling to figure it out and collecting information.
I will start working on this full time later in the year as more data becomes available.
TV, radio, internet often has errors, disinformation, ads, lies, propaganda, hysteria,…

I attach a graph on money supply.
M2 is suddenly exploding.
Money in the banks.
But if people get free food, and cheap gasoline, or supply on some items is zero,…
then inflation cannot happen.
Also government is giving free vaccines, and drugs, and Covid-19 treatments in some cases…
I believe measurement error,
politics, disinformation
may cause statistics to be unreliable for a long time.

I have to figure out some way of getting good information when others may be trying to stop good information, or hide information.
Who is liable for this pandemic?
Should Communist China pay?

Why did Obama not prepare pandemic with face masks, test kits, ventilators, respirators, ICUs, PPEs, personal protective equipment,…????

Been 100 years warning pandemic is coming!

President George Bush was warning about pandemics before Obama,
then Obama dropped the ball.
Why?

Joe:
Thanks for this on Covid-19. Most of the reading is what we are hearing on the TV and it does make one more defensive.
Both my wife and I are in lock-down and will most likely be this way for several months.
I am not sure what the future holds in all of this but surely the economy will be affected and
I hate to give any hopeful outlook.
I am conflicted as to what will happen to the price structure of products
after printing all of this money that is thrown out by the government,
yet with falling demand and a negative GNP,
prices are bound to come down.
Some advocates say the amount of cash rolling around in the public domain will bound to drive prices up.
So who is right?
Frankly, my take on this is that this depression will bring prices down until monetary circulation picks up in the public.
The m in mv equation will overtake the v, or money velocity circulation.
The “push-pull” is going to be interesting to watch the next couple of years.
What do you think?
Rich

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