Understanding the Current M2 Money Supply

The Federal Reserve has one tool comprised of 3 separate functions which are all a mechanism to increase liquidity in the overall system. To express this liquidity, the following chart from the Fed shows the M2 money supply levels:

The 3 functions are the printing of currency, the monetization of U.S. Treasury debt (QE, QE2, QE2.5, Operation Twist), and exceptionally low interest rates (ZIRP) near 0 for an "extended period of time (2014)."

If central banks around the world continue to print money there are only a few places to hide. Precious metals and other commodities like oil will vastly outperform stocks in the long run if the Dollar continues to slide.

Chris Vermeulen [The Fed, the S&P 500, & Why Gold Is Shining Bright; January 27, 2012]