{"id":52552,"date":"2020-04-15T19:57:51","date_gmt":"2020-04-16T00:57:51","guid":{"rendered":"https:\/\/olduvai.ca\/?p=52552"},"modified":"2020-04-15T19:57:54","modified_gmt":"2020-04-16T00:57:54","slug":"weekly-commentary-when-money-died","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=52552","title":{"rendered":"Weekly Commentary: When Money Died"},"content":{"rendered":"\n

Weekly Commentary: When Money Died<\/a><\/h3>\n\n\n\n

Sitting at the dinner table, our eleven-year old son inquired: \u201cIf a big meteor was about to hit the earth, how much money would the Fed print?\u201d I complimented his sense of humor. Yet it was a sad testament to the historic monetary fiasco that will haunt his generation.<\/p>\n\n\n\n

Federal Reserve Assets surpassed $6.0 TN for the first time, having inflated another $272 billion for the week (to $6.083 TN). Fed Assets inflated an astonishing $1.925 TN, or 46%, in only six weeks. Bank of American analysts this week suggested the Fed\u2019s balance sheet could reach $9.0 TN by year-end.<\/p>\n\n\n\n

M2 \u201cmoney supply\u201d surged another $371 billion for the week (ending 3\/30) to a record $16.669 TN. M2 expanded an unprecedented $1.136 TN over five weeks (up $2.123 TN, or 14.6%, y-o-y). For some perspective, M2 has expanded more during the past six months than it did the entire nineties (no slouch of a decade in terms of monetary inflation). Not included in M2, Institutional Money Fund Assets expanded an unparalleled $676 billion in five weeks to a record $2.935 TN. Total Money Fund Assets were up $1.375 TN, or 44%, over the past year to a record $4.473 TN.  <\/p>\n\n\n\n

There was a sordid process – rather than a specific date – for When Money Died. But it\u2019s dead and buried. There are a few things that should remain sacrosanct. Money is absolutely one of them. Money is special. Sound Money is precious \u2013 to be coveted and safeguarded. As a stable and liquid store of value, Money is the bedrock of Capitalism, social cohesion and stable democracy. Society trusts Money – and with that trust comes great responsibility and risk.  <\/p>\n\n\n\n

Analysis I read some years back on the Gold Standard resonates even more strongly today: Limiting the capacity for inflating its supply, the structure of backing Money with the precious metal worked to promote monetary and economic stability.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Weekly Commentary: When Money Died Sitting at the dinner table, our eleven-year old son inquired: \u201cIf a big meteor was about to hit the earth, how much money would the Fed print?\u201d I complimented his sense of humor. Yet it was a sad testament to the historic monetary fiasco that will haunt his generation. Federal […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7756,16861,303,7819,309,3650],"class_list":["post-52552","post","type-post","status-publish","format-standard","hentry","category-economics","tag-credit-bubble-bulletin","tag-doug-noland","tag-fed","tag-fed-balance-sheet","tag-fiat-currency","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=52552"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52552\/revisions"}],"predecessor-version":[{"id":52553,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52552\/revisions\/52553"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}