Friday, 9 November 2012

M2 Money Stock (U.S.) hits New All-Time High

The M2 Money Stock in the U.S. hit yet another new all-time high according to figures just released by the Fed. It increased 0.45% on last week to end on $10,257.3 billion.



  1. OK, but M2 velocity has fallen off a cliff. Net effect?

  2. Do you mean "and" M2 velocity has fallen off a cliff (M2 reaching a new high is not good news)? M2 velocity is at the lowest level ever due to M2 having grown significantly quicker than GDP (see under the Money Supply heading on top of the website).

    Some net effects from the increases in money supply are increased Consumer price inflation (it's been here for some time, see the charts published on EcPoFi from Shadowstats) and a weaker dollar in general.