A look at the Greatest Money Supply Surge in History
The headline above is borrowed from Michael Shedlock’s blog, Global Economic Trend Analysis, at TheStreet.com.
Although we have tracked the Federal Reserve’s massive dollar creation for you, we think the headline frames the frenzy in a dramatic way. Almost a quarter of the US money supply is new, freshly “printed,” and conjured into existence just this year.
Having grown by $3 trillion just since March, it is, as Shedlock points out, the greatest money supply surge in history.
One question that occurs to us is this. Who exactly in the government, at the Treasury department, or at the Federal Reserve, is telling you what the impact of this unprecedent monetary surge will be?
A few may know what it will do to the economy. They aren’t talking. Most don’t know. Fed chairman Powell says they’ll figure it out later.
Shoot first. Ask questions later.
To be bullish on gold and silver is simply to acknowledge that what the Fed has already done necessarily will have consequences.
Here are the numbers for M2 money supply. In the middle of October 2019 M2 was $15.1169 trillion. On October 5, 2020, it was $18.6993 trillion. That is an increase of $3.5824 trillion in one year.
Here is a five-year chart showing the explosion in the money supply and the accompanying rise in the price of gold. The money supply has grown so fast, it looks like gold has some catching up to do.
Now, the Federal Reserve, even with hundreds of economists on staff and others receiving Fed dollars, won’t bother to tell you what all this furious money printing means for the dollar, for gold, and for you. But even if they won’t tell you, we will. We have written about these policies and their impact in detail for years. We invite you to spend some time searching hundreds of posts on our blog.
When the Fed won’t tell you about the destructive impact of their policies, we will. We invite you to speak with a Republic Monetary Exchange gold and silver specialist today.