M3 was a poor guage to measure money supply inflation since it included large deposits like CD’s and is no longer officially used. Any decline may simply be showing a shift to money market and savings accounts. The more liquid M2 is the bigger concern and is showing a steep increase, money that’s actually hitting the streets when peope use cash or bankcards.
And wait until we get even more FED involvement in buying bonds as investor demand dries up.
May be hitting somebody’s streets but it ain’t ours, QE1 money went to banks where it still sits and QE2 money apparently all went overseas.