Kerby Anderson

America’s money supply has increased faster than at any time in history, and that should concern you and your family. The reason for the increase in the money supply should be obvious. The government has been pushing stimulus efforts after the economic devastation of the pandemic and the lockdowns. Nearly a quarter (23.6%) of all U.S. dollars were created last year. An equity strategist with Morgan Stanley said that “it’s fair to say we have never observed money supply growth” as high as it was in 2020. In order to put that amount in perspective, consider that the year-to-year growth in the money supply never exceeded 15 percent according to Federal Reserve records that date back to 1981. All of this was true for 2020. Then Congress passed a stimulus bill totaling $1.9 trillion earlier this month. Economists have run the numbers and concluded that President Biden and his administration will have to spend an average of $3.7 billion every day for the rest of the year. That works out to spending $43,000 every second of every day. What does that mean to you? Obviously, it means you will be getting a check in the mail or a direct deposit. But let’s look at what it means to you and your family over the next few years. It is likely that we will see inflation simply because we will have more and more dollars chasing the same amount of goods and services. Last year when federal spending was accelerating, there were various hedge fund managers saying they were concerned about inflation and dollar depreciation. Some began to invest in both gold and bitcoin. It would appear that more investors and managers will follow suit. I don’t claim to be a financial manager, but I can look at the significant increase in the money supply and predict there will be major economic consequences.