Max Keiser argues that Rampant inflation of the dollar’s M2 money supply is only enriching the ‘cantillionaires.’ It is because its velocity hits record lows. There are more United States dollars than ever. Nevertheless, the rate at which they move across the economy has never been so low.
It is according to the Federal Reserve’s statistics on August 31. Statistics showed that a collapse in the velocity of the M2 money supply had come. It is despite the fact of record money printing.
In 2020, the M2 supply topped $18 trillion. It is thanks to coronavirus countermeasures. Meanwhile, for the first time since at least the 1940s, velocity fell below 1.125.
This year is the mark of a clear contrast to historical data of the dollar. Thus, there is sudden volatility in both metrics, which is worryingly clear to see.
The record low suggests that there is a tremendous amount of liquidity, as Cointelegraph reported. Nevertheless, it is barely touching the economy.
One reason for that is after its operations; the additional cash remains on the Federal Reserve’s balance sheet. It means that those who see almost all its impact are the closest to the source of the money.
Max Keiser is the RT host. For him, this process (known as the Cantillon Effect) turns those beneficiaries into a news sector of the elite. They are the ‘cantillionaires.’
He tweeted alongside the Federal Reserve data that it is the only chart that gives you the best picture of what is happening. Thus, it explains everything.
Trillions are being printed. Nevertheless, they are not circulated. The closest to the printer are boarding the dollar.
In recent weeks, money printing has come under the microscope. The United States dollar is circling multi-year lows against major currencies in addition to the velocity collapse.
Meanwhile, in Europe, a return to negative inflation comes. It is despite that the European Central Bank’s program of money-printing