More Recession Signs: Money Supply Growth Went Negative Again in December
The fact the money supply is actually shrinking serves as just one more indicator that the so-called soft landing promised by the Federal Reserve is unlikely to be a reality.
The fact the money supply is actually shrinking serves as just one more indicator that the so-called soft landing promised by the Federal Reserve is unlikely to be a reality.
We're now seeing the first time the money supply has actually contracted since the 1990s. The last time the year-over-year change in the money supply slipped into negative territory was in November of 1994.
The US monetary system is out of sorts and out of control. The authors show a path back from the inflation brink to monetary soundness.
During September 2022, year-over-year (YOY) growth in the money supply was at 3.92 percent. That's down from August's rate of 4.54 percent, and down from September 2021's rate of 7.02 percent.
The money supply is on a long and fast downward trajectory. This points toward recession and is just one more indicator of economic weakness in addition to negative GDP and an inverted yield curve.
During May 2022, year-over-year (YOY) growth in the money supply was at 6.97 percent. That's down from April's rate of 7.25 percent, and down from May 2021's rate of 15.4 percent. The growth rate peaked in February 2021 at 23.12 percent.
Ryan McMaken joins Jeff and Bob for a hard look at the economic reality Americans face today.
During April 2022, year-over-year money supply growth was at 7.23 percent. That's down from March's rate of 7.41 percent and April 2021's rate of 36.8 percent.
Paul Krugman recently wrote that the reason we see high inflation is that people mistakenly believe inflation is in our future and act accordingly. This reasoning is false.
The usual "experts" claim inflation is a general increase in the price level. Wrong. Prices rise because of inflation, which is a government-caused increase in the amount of money in circulation.