M4 up 0.9% in February

As of 2/28/13:
M2 = 10,389.9
Public Debt = 11,822.4
Fed held = -1749.6
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Total (as of 2/28/13) = 20462.7

This is up 0.9% over January, and up 3.6% since 9/30/2012.

All else being equal, this is what you would expect the rate of inflation to be.

I want to comment on the relationship between the 3 numbers.  If new T-bills are issued in the amount of, say $50 bn, and paid for from existing M2, then M2 will decrease and the total will remain the same.  If those same T-bills are monetized by the Fed, then M2 will increase but the "Fed held" portion, which is negative, will also increase, and the total will remain the same.

So how would M4, which is what I call the total, ever increase?  1) with the Fed purchase of MBS, 2) with private loans increasing (which has not been happening, since M2 has been decreasing), or 3) with Federal deficit spending.  When the deficit check is written, this increases the amount of money in circulation, but not when T-bills are sold.