Hey Jeff,
Can you explain the difference in how you think about global m2 versus US net liquidity or global net liquidity? I understand the calculation of net liquidity in terms of fed bs less tga less rrp. But this measure has been flat or down for a few months while global m2 is way up.
In short, US net liquidity is the amount of Treasuries and (less so) mortgage-backed securities held in the coffers of the Federal Reserve and the US Treasury. -- This number tends to directionally correlate with US-based assets, such as micro-, small-, and mid-cap US equities.
M2 is the estimated total amount of money supply, including checking/savings accounts, physical cash, and CDs. -- This number tends to directionally correlate with the movement of global assets, such as bitcoin, gold, and megacap stocks.
