M2 data was released today — it is down -4.63% since last year, the fastest pace of money supply destruction since January 1933. The Fed eased at 100 mph, now it is slamming on the brakes and credit markets are about to fly through the windshield.
Anybody seen the new Janet Yellen dollars in circulation yet?
ORLANDO, Florida, March 29 (Reuters) – U.S. money supply is falling at its fastest rate since the 1930s, a red flag for the economy and financial markets.
Money supply has now been shrinking year-on-year since December, an unprecedented development in modern times that should make investors sit up and take notice – growth, asset prices and inflation could all weaken.
It is largely a consequence of the reversal of the liquidity generated by massive post-pandemic fiscal and monetary stimulus, the Federal Reserve shrinking its balance sheet via quantitative tightening, falling bank deposits, and weak demand for and provision of credit.
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