M2 vs. M2v (or Money Supply by Money Velocity)

Telah dikemas kini
This is a pretty bleak chart illustrating how printing more bad money is not the solution to a broken monetary system. The M2 can be seen gradually increasing at around a 30 or so degree slope until about 2011 onward where it becomes steeper... then at the beginning of the pandemic -- it turns parabolic. During the same period you can see the M2V which is a measure of how much penetration each dollar is getting (in other words, how many different hands does it touch on its way through the economy. More velocity means each dollar goes farther as it relates to the health of the economy.

So what in the world is happening now? Well a massive influx of new dollars added to the money supply aren't moving past wall street. Most of this money is just bouncing between super wealthy and well-connected insiders, being used by corporations to buy back shares, or simply just sitting in a literal or electronic vault, where it never reaches the actual economy.

This is a dangerous situation that can get out of hand quickly, culminating (in the worst case) into a widespread loss of faith in the money supply and almost overnight devaluation of the currency. This has happened with ever other paper currency in history, which would be an excellent place to begin research if you are interested in knowing more about what is happening to our currency.

My only advice is to be aware that the security you feel with a wallet full of cash is actually a luxury only afforded to global hegemonic powers; one which is always ephemeral even though many may struggle to remember a time when that seemed possible.
Dagangan ditutup: sasaran tercapai
nothing has changed and hyper inflation starting
Beyond Technical AnalysisBTCcryptofedM1M2M2VmoneySupply Zonevelocity

Juga pada:

Penerbitan berkaitan

Penafian