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.

[Beowulf9]

raising interest rates is only causing the next cycle of inflation by crashing the economy, which lead to even bigger deficits & inflation. look at gas prices after 2002, after 2008, after 2020 crashes. Biden’s war on fossil fuels and big deficits cannot be fixed by the Fed. We used to know that. The 1980s was not “runaway inflation”. nor is now. Now is just Biden fiscal and regulatory policy trickling down to consumers in higher general price levels.....remember Joe’s tax on Big Oil? The 1970s, Democrats passed a dual mandate law to politicize the Fed in 1977. The Fed interpreted its mandate after by allowing prices to rise when the economy is bad, but not allow wages to rise when the economy is good, which only has caused the far Left to get strong, running against markets and capitalism being unstable and inhumane.
1970s liberals believed taxes, spending and regulation didn’t matter because the Fed always could just buy bonds and pump dollars into the economy. ...until the economy stopped growing, unemployment started rising and prices kept rising with unemployment. Reagan had to cut taxes and deregulate or else the Fed could not tighten, but then it tightened too much at the beginning and ending of the 1980s and then in 2000, with catastrophic results for the GOP and capitalism over time

[Mariner]

“raising interest rates is only causing the next cycle of inflation by crashing the economy, which lead to even bigger deficits & inflation.”

BS

Raising interest rates does not cause inflation.

It puts the brakes on LENDING and thus M2 expansion. And it will eventually cause the US to default....way over due.