US Money Supply has increased by over 50% in the last 3 years, the largest 3-year increase ever.
Only other times when Money Supply increased by >40% in a 3-yr period: 1973 & 1977-78.
Both were followed by high inflation, recessions (1973-75, 1980, 1981-82) and bear markets.
Only other times when Money Supply increased by >40% in a 3-yr period: 1973 & 1977-78.
Both were followed by high inflation, recessions (1973-75, 1980, 1981-82) and bear markets.
Initially everyone loves printing money as the results only seem positive (booming stocks/housing/economy). But inevitably, the pernicious effects of inflation are revealed and a choice has to be made: print more or end the party before it's too late... (1/2)
We've just recently chosen the latter, w/ Joe Manchin drawing a line in the sand and the Fed ending QE/ZIRP w/ a move towards normalization. The M2 rate of change is now slowing rapidly. In the short run this will be painful but it's the only path to long-term prosperity. (2/2)
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