4 ms·
Approximate M2 growth since the start of 2020: USA: 33% Canada: 23% UK: 17% Euro Area: 15% China: 15% Japan: 13% WhERe iS aLL thE MOney ComInG fRoM guYS?
by louloulou 5y ago
Approximate M2 growth since the start of 2020:
USA: 33%
Canada: 23%
UK: 17%
Euro Area: 15%
China: 15%
Japan: 13%
WhERe iS aLL thE MOney ComInG fRoM guYS?
- voisin 5y agoLet me summarize the next four replies before they are posted: “Oh but it’s ok because velocity of money plummeted!!!” Ignoring the fact that there has never been an instance of money supply increase in relation to velocity of money decrease that was reversed once the velocity eventually returned to normal. Those money supply numbers you posted are the new normal now.
- someguydave 5y agoNot only that, but those governments also subsidize things like 30 year fixed rate mortgages with government guarantees. So not only is there more money burning a hole in people's pockets, the artificially low rates create massive leverage. I wager that if home buyers had to convince private hard-money lenders to give them 30 year mortgages the rates may increase. (Imagine if houses were denominated in gold)