This chart is hardly a homerun for the case that M1 velocity is a leading indicator of recessions.
you missed their point: velocity has fallen off a cliff, and the only thing holding the house of cards up is massive money pumping by the Fed.
It's funny how
Politico Wonkish and other conservatives are arguing how QE was going to cause the velocity of money to explode and lead to hyperinflation. The Fed hasn't done that much pumping since June 2011. A $100 billion increase in the monetary base since then, which is very small for the size of the economy, almost all of which happened in the latest week.
