Money Supply Explodes!

06 May

Money Supply Explodes!

Just like it did during the Stagflation Decade!

Plus Joe Biden, the fiscal conservative?

Just in time for the 2022 election, President Biden is suddenly trying to re-package himself as a fiscal conservative.

That’s quite a stretch!

Meanwhile, Charlie Bilello, CEO of Compound Capital notes that the US money supply has increased by over 50 percent in the last three years.  That is the largest 3-year increase ever:

The only other times when Money Supply increased by [greater than] 40% in a 3-yr period: 1973 & 1977-78.

Both were followed by high inflation, recessions (1973-75, 1980, 1981-82) and bear markets.

And finally, what has happened to America’s dynamic engine of growth?  David Stockman points out that trend growth in productivity has been weakening for five decades, roughly since Nixon abandoned the gold dollar.

Here’s the breakdown:  

Y/Y Labor Productivity Change, 1953-2022

  • Q1 1953-Q1 1973: 2.72%
  • Q1 1973-Q4 2007: 1.97%
  • Q4 2007-Q4 2019: 1.34%
  • Q4 2019-Q1 2022: 1.13%

So today’s growth trend of 1.13 percent “is barely two-fifths of the 2.72 percent per annum rate which prevailed during the heyday of American prosperity between 1953 and 1973.”

If you would like to know more about America’s declining productivity and wealth, and the crisis of our unpayable federal debt, you will want to read my new book.  

It’s called REAL MONEY FOR FREE PEOPLE: The American Gold Story.  You will learn how to protect yourself from the dollar destruction that is already underway at the hands of the Federal Reserve and has given us the highest inflation in decades.

We have a free copy of REAL MONEY FOR FREE PEOPLE waiting for you.  Stop by Republic Monetary Exchange in Phoenix on Camelback just east of 40th Street.