Is M Two Coming Down?

M two is checking plus time deposits. People are still, it's, people are worried about the future. They're not spending money. So M two may not be sticky if people are holding on to the savings rate of starting to rise. The fact that M two is even starting to drop off at all is the most powerful argument for a deflationary environment. It only tells me that the Fed's not nearly done trying to get rid of all this latent inflation that they don't want into the economy.