Equity indices across the world are at a several-month-high. Investors seem to be hoping against hope that the bad news of the past year is past. Alas, two monetary measures that we have been tracking indicate otherwise.

The graph of Corrected Money Supply below seems to be faltering after rising continuously since 2009.

The graph of M1 plus sweeps minus business loans shows that the recent contraction is continuing.

The rationale behind Corrected Money Supply is explained in my ebook The General Theory of Money.

The rationale behind the second graph is more complex. But anyone who reads my book should be able to guess why it mirrors the economy so well.