Economist’s “News and Views” Wednesday 11-22-2023

23/11/2023

US Money Supply (M2) in Greatest FREE-FALL Since 1930’s.

Lynette Zang: 11-21-2023

What you’re looking at here is the M2 money supply, which is not the broadest base of money, but the second versus the CPI. So inflation consumer Price index versus the GDP. So that’s all the money that flows through the U.S. system.

And we’re going to start on March 1st of 1913. And then the Federal Reserve was installed in December of 1913. And you can see how all of these lines and graphs merge, right?

So the black line is the money supply. You can see how much that has gone up. And then the blue line is the CPI. So the inflation gauge Consumer Price index and that line down there is the GDP, gross domestic product.

And the reason why I said that this is like the saddest graph is simply because it takes more and more inflation and more and more money.

CHAPTERS:

0:00 The Saddest Graph

1:10 M2 Money Supply Vs CPI VS GDP

4:37 Velocity of M2

10:50 Beginning of This Current Life Cycle

13:07 Did M2 Lead To Great Depression

18:28 Gold – Long Term Prices

23:24 How Do You Go Below Zero