There are more dollars than ever before, however The speed at which they move in business has never been so slow.
This comes from Federal Reserve statistics as of Aug. 31, which shows that the speed of the M2 money supply has collapsed despite the pressures of record money.
The rise of the “Cantillonarios”
Supply of M2 topped $ 18 trillion in 2020 thanks to coronavirus countermeasures, while its speed fell below 1.125 for the first time since at least the 1940s.
This year is a stark contrast to historical data, with the sudden volatility of both metrics worryingly clear.
As Cointelegraph reported, The record low suggests that there is a lot of liquidity but hardly affects the economy.
One reason for this is because the extra cash stays on the Fed’s balance sheet after its operations, which means that Those closest to the source of money see the most impact.
For the RT moderator Max Keizer, this process is known as the Cantillon Effect rotate to these beneficiaries in a new sector of the elite: the “Cantillonarios”.
“This is the only graphic that gives you the best picture of what is happening. It explains everything, ”he tweeted along with the Fed data.
“Billions are printed, but they don’t circulate. The $ is approached by those closest to the printer. “
US M2 money supply velocity versus money supply graph. Source: Federal Reserve
The Bitcoin supply data shows the attitudes of investors
Money printing has been under scrutiny over the past few weeks In addition to the collapse in speed, the dollar is circling around multi-year lows against the main currencies.
In Europe meanwhile Despite the European Central Bank’s own money printing program, there is a return to negative inflation. That one commenter said it definitely did not get the desired effect.
Bitcoin (BTC) as a hard-cap currency with a variable and predictable supply has only benefited from the increasing central bank debt.
Data from the on-chain monitoring resource CryptoQuant underscores the robustness of Bitcoin’s delivery speed: Fewer and fewer coins are circulating when investors are saving and not spending.
Bitcoin Money Supply Speed vs. Price chart. Source: CryptoQuant
Last month, Kraken manager Dan Held cited the offer values as a sure sign that Bitcoin is in the middle of a new bull price run. Inflation and global debt are also on the list.