Money Supply Growth Falls to Depression-Era Levels for Second Month in April

Mises Institute ^ | 06/23/2023 | Ryan McMaken

[lurk]

We pumped five trillion Nancybucks into the economy over the last three years. No way we’ve metabolized all that.

[Parley Baer]

The result of the Biden economy.

[Toddsterpatriot]

Gotta unwind all the QEs.

[fhayek]

I think that the idea is that because we ballooned the money supply so rapidly in the Covid years, we now have to contract the money supply now to make up for it. I think that we are in uncharted territory, but I think that is the general strategy.

To combat inflation, you do need to synchronize the money supply with the amount of goods and service being produced. No way that it can be done without pain. I advocated a 'tear the bandaid off quickly' approach. Loan about $750 billion to Argentina, and wait for the inevitable default. Yeah, that's why they will never let me near any of the levers of power...

[Varsity Flight]

Price pressure ⬆️ Fed. House-Senate Budget passed.

Price pressure ⬆️

[sauropod]

.

[Magic Fingers]

We seem to have an unlimited supply to spend on Ukraine.

[Sequoyah101]

When it goes up by 35% going down by 15% or more just isn’t a big deal for me. In fact, it sure looks like a good thing to me.

I’d like to see it go down by more like 50%.

[Sequoyah101]

What is more, rates are just nmw getting realistic. Embrace the suck kiddies, 3% mortgages and essentially free car loans aren’t normal. No way would I ever loan my money at such low rates. If your enterprise can’t afford more it isn’t worth investing in.

I’d say someday people would learn but that is just a stupid idea.

[delta7]

The result of the Biden economy.
———-
We haven’t seen anything yet….now we just might see why .gov is persuing the cashless sovereign digital currency. Once cashless, there will be no tracking or fore warning of a meltdown, which is most assuredly coming.

[Mark]

Similar to current Freeperthon. Ignore the obvious.

[SaveFerris]

BidenDepression 2023

Maybe Spring 2024?

Hope I’m completely wrong about that, BTW.

✝️🙏🛐

[SaveFerris]

🔝🔝🔝

[SaveFerris]

Yep

[SaveFerris]

(We haven’t seen anything yet)

Yeppers

[frogjerk]

Money supply growth can often be a helpful measure of economic activity and an indicator of coming recessions. During periods of economic boom, money supply tends to grow quickly as commercial banks make more loans. Recessions, on the other hand, tend to be preceded by slowing rates of money supply growth.

It seems like the cart is before the horse here. Isn't money supply a result of the FED reacting to economic activity and not the other way around?

Money supply is controlled by the FED. It is their one job that they failed to do and gave us the Great Depression.

[unclebankster]

Good article.

Thanks for posting it.

[redgolum]

It’s going to get much much worse.
There is a reason everyone is pushing for a war

[Drago]

Yep, we could use some deflation about now. The inevitable Biden recession is just the price he pays for massive deficit spending/money “printing”/QE.