Show this chart to your friends who doubt the increase of our money supply.
Show this chart to your friends who doubt the increase of our money supply.
Sure, the money supply has increased, but how fast has it increased compared to our rate of growth?The whole reason that we got off of the Gold standard was so that we could make our money supply increase as fast as our economy needed capital.
Without enough capital, the economy stalls.
Our economy hasn't stalled, much less stalled from a lack of capital.
Our stock market, on the other hand, has been over-priced for 7 years. That's almost biblical. 7 years of stock-market-boom followed by ... of stock market bust.
In the meantime, Joe Averages around the country continue working and living paycheck to paycheck, dutifully producing and consuming. Joe's gonna be a bit pissed when he figures out that his 401(k) retirement fund is knocked back to 1994 levels, of course, but he's still gonna make his car payment, house payment, alimony payment, and buy beer for the big game.