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Verifying the numbers. M0 money supply in late 2019 was about 3.5 trillion. Today it's about 6.5 trillion. That's not locked in inflation, that's just money si
by sleepysysadmin 5y ago
Verifying the numbers.
M0 money supply in late 2019 was about 3.5 trillion. Today it's about 6.5 trillion. That's not locked in inflation, that's just money sitting in accounts.
M1 from 2017 to late 2019 was around 5 trillion. Maybe a slight increase over those years. Today it's about 20 trillion. So about 400%? That's hyperinflation coming if nothing is done to fix it. Technically this is out of the hands of the government but there are things they can do to fix this.
M2 is where we are locked in. Again late 2019 we're in the 1.5 trillion area. Today we're about 2.1 trillion. That's roughly 40% inflation locked in.
The 40% won't come all in 1 year, but 5% inflation at the moment certainly isn't covering it. 0.25% fed funds rate is also tremendously lacking.