SPDR S&P 500 (SPY)

[fitzwell11]

I could go pretty long winded in this, but I'll keep it as short as possible. In the simplest state, M2 increases are not inflationary, that money must be lent out and spent, that is how dollar are created. While the FED has been pushing pushing pushing M2 higher, banks have currently tightened lending standards to the strictest levels since 2010, meaning no one is getting loans. QE via rate control also causes issues in that it makes the margins paper thin for banks to lend in the first place, thus even less appealing for a bank to lend, thus no new dollars created.

The only reason we haven't actually seen a DXY rally is because there is forebearance on all of these loans (mortgages, student loans, etc.). Once that ends and people start repaying them, dollars will be put into the banks, and not re-lent out, which will be even more deflationary.