The Money Supply Vs. Inflation historical chart below can save your family if you follow its revelation.
The “M2 Money Supply”, also referred to as “M2 Money Stock“, is a measure for the amount of currency in circulation.
M2 includes M1 (physical cash and checkable deposits) as well as “less liquid money”, such as saving bank accounts.
The chart below plots the yearly M2 Growth Rate and the Inflation Rate, which is defined as the yearly change in the Consumer Price Index (CPI).
When inflation is high, prices for goods and services rise, and thus the purchasing power per unit of currency decreases.
Historically, M2 has grown along with the economy (see in the chart below). However, it has also grown along with Federal Debt to GDP in times of war.
In most recent history, M2 growth surpassed 10 percent in recessions, during which an expansionary monetary policy was deployed by the central bank, including large scale asset purchases. According to Bannister and Forward (2002, page 28), Money supply growth and inflation are inexorably linked.
The chart below is that of the M2 Money Supply Vs. Inflation:
The chart above is telling you what is coming very soon.
Inflation is tied to the money supply and every single period of time that the money supply expanded, inflation soon followed with a market crash.
Now, when you look at the current money supply, on the far right, you can clearly see that it has exploded beyond reason just within the last few years. This is leading to a MASSIVE MARKET CRASH followed by RAPID INFLATION.
However, you have time still to prepare. As of today, inflation has not yet started but it will come soon.
Do you know which assets you should own, hedge, or sell immediately?
As the Money Supply Vs. inflation adjustment appears we will tell our members precisely what assets to buy, keep, and sell within the Members Blog.