Because like all government statistics the Money Supply Figures are constructed to exclude a huge portion of government created Money.
The Ausatrian School has constructed a TRUE MONEY SUPPLY figure that show the TMS posted another double digit year-over-year rate increase in March, this one coming in at 14.5%.
That makes 40 consecutive months of double digit year-over-year rate increases. To state the obvious, we are in the midst of a monetary explosion.
So what is the True Money Supply. It includes what the Fed calls: "Other Memorandum items" that they exclude from M2. These are defined below, and they are comprised of most of the Fed's trillions upon trillions of dollars of LIQUIDITY FACILITIES that are settled between the fed, the international banking system and the US Government. See below:
TMS1. A narrow definition of the money supply based largely on Shostak’s AMS formulation of money – excluding savings deposits but adding back bank deposit sweep programs (those monies banks “sweep” out of demand deposit accounts and into savings and MMDAs to lower effective reserve requirements). (1) (2)
TMS2. A broad definition of the money supply based on Rothbard-Salerno’s TMS formulation of money, brought current in accordance with the conclusions presented in this essay, and the most complete and most correct measure of the money supply.
M2. Federal Reserve Board’s broad money supply measure.The composition of each series is presented below: