Easy Money?? The Money Supply Continues Its Biggest Collapse Since The Great Depression As Credit Card Rates Exceed 20% (49 Straight Weeks Of Negative M2 Money Growth)

Confounded Interest ^ | 12/06/2023 | Anthony B. Sanders

[Kaiser8408a]

Bidenomics was all about “easy money” ... until inflation led The Fed to tighten. The result? 49 straight weeks of negative M2 Money “growth.”

Money supply growth fell again in October, remaining deep in negative territory after turning negative in November 2022 for the first time in twenty-eight years. October’s drop continues a steep downward trend from the unprecedented highs experienced during much of the past two years.

Since April 2021, money supply growth has slowed quickly, and since November, we’ve been seeing the money supply repeatedly contract year over year. The last time the year-over-year (YOY) change in the money supply slipped into negative territory was in November 1994. At that time, negative growth continued for fifteen months, finally turning positive again in January 1996.

Money-supply growth has now been negative for twelve months in a row. During October 2023, the downturn continued as YOY growth in the money supply was at –9.33 percent. That’s up slightly from September’s rate decline which was of –10.49 percent, and was far below October 2022’s rate of 2.14 percent.

The money supply metric used here—the “true,” or Rothbard-Salerno, money supply measure (TMS)—is the metric developed by Murray Rothbard and Joseph Salerno, and is designed to provide a better measure of money supply fluctuations than M2. (The Mises Institute now offers regular updates on this metric and its growth.)

Then we have US consumers, attempting to cope with Biden’s inflation, by paying all-time highs on credit cards while trying to service ever-growing credit card balances.

[Mariner]

The Fed has not tightened nearly enough.

[sauropod]

.

[Red Badger]

M2 supply is shrinking? No wonder they cost so much!........................

[SaveFerris]

(Biden’s inflation)

Destroying America.

Just like Manchurian Candidate Barack Hussein Obama.

As his sock puppet.

[Paladin2]

The Fed are weak-minded and yet firm on wanting to keep Trump away from the helm of the Ship of State.

[Brian Griffin]

“As Credit Card Rates Exceed 20%”

Yes, ordinary folks, Democrats in DC love people, just not you.

[Brian Griffin]

Tightening credit will not stop house price rises when the stock market is so highly valued.

[cymbeline]

Weren’t people complaining about the increasing, inflation-causing money supply, and now they are complaining about a reduction in the money supply.

Could someone expand on this?

[woodbutcher1963]

The problem going forward into 2024 could be DEFLATION.

Especially for real estate. There are people who bought the top of the real estate markets in some locations. Austin and San Fran for example.
Some real estate prices are already down 20-25%.

Automobiles are also not selling very well. New car prices have been coming down. This also puts pressure on used car prices.

What is NOT coming down is the price on anything in CVS or Walgreens. I think we are all paying extra to make up for all the LOST merchandise in other areas. For example, I bought a Zicam Nasal Spray this morning at Walgreens. The last time I bought it I paid $11.99. Toady it was $16.39. Buy one get 50% off on the second. So, I bought two.

So, there is inflation on small things and deflation on big ticket items.

[Big Red Badger]

And the price on BANANAS 🍌 HAS
Not changed for Years !?!
.
What’s up with That?

[econjack]

The Quantity Theory of Money states:
M * V = P * Q

where:
M = the money supply (think of M2)
V = the velocity of money
P = Prices (index like CPI)
Q = Output, or things produced

V has been almost constant for 5 decades. If there’s no inflation, then P should be constant. Given that, if productivity (Q) increases by 3.2% per year, then M should increase by a proportional amount.

If you look at the measure of M2 for the last six decades, it has been very stable.

https://www.reuters.com/markets/funds/us-money-supply-falling-fastest-rate-since-1930s-2023-03-29/

Now look what happened after Joe was elected. Never before have we ever seen such a mismanagement of M2...more that 5x the secular trend. If Dufus knew anything about economics, he would see that, with Q stagnate, P could only increase. Couple that with the explosive growth in M2, inflation had to be the result.

We should require politicians to take Econ 101...and pass.

[unclebankster]

econ,

Thanks.

Good article.

[griswold3]

The goal is to bring the standard of living in the US of A down to third world levels.

oregon May 17 2008 “We can’t drive our SUVs and, you know, eat as much as we want and keep our homes on, you know, 72 degrees at all times, whether we’re living in the desert or we’re living in the tundra, and then just expect every other country is going to say OK, you know, you guys go ahead keep on using 25 percent of the world’s energy, even though you only account for 3 percent of the population, and we’ll be fine. Don’t worry about us. That’s not leadership. ~ Barack Obama

All going According to plan

[SaveFerris]

I expect that too

And with those who bought overpriced automobiles with money loaned against those inflated prices......

I’ve never really recovered from 2008.

As such my immediate debt is rather small.

[SaveFerris]

(The goal is to bring the standard of living in the US of A down to third world levels.

.....

All going According to plan)





Yep, all according to plan.

[Chad C. Mulligan]

Good article, false headline, implying that M2 is shrinking, (deflation), while the reality is anything but.

[sergeantdave]

“And the price on BANANAS 🍌 HAS
Not changed for Years !?! What’s up with That?”

Don’t expect an answer. The neurotic doomers cult is on a roll.

[Big Red Badger]

Boomers Cult ——
If they Passed me the Kool-Aid I’d
Drink It !
.
I missed the “E” ticket ride
of the Covidiots.

[steve86]

” I bought a Zicam Nasal Spray this morning at Walgreens... Toady it was $16.39. “

Single unit price $10.98 at both Walmart and Amazon.