Let’s talk about the ridiculous amount of money, fake money, that’s been created in the past year. Would it shock you to learn that the Federal Reserve “printed” 10% more money last year? Well, be prepared for the real number.
Between February 2020 and February 2021, the M2SL money supply rose 26%. Here’s the chart straight from the Fed, we’re not making this up.
The past year saw the biggest inflation of money in a single year since 1943. Back then we were in the middle of World War II. A 26% increase in one year during peacetime is clearly edging on insanity.
It’s used to be that money was printed on paper, but when you jack up the money supply by the trillions, you have to electronically wire it out or mail very large checks. First it was a $600 stimulus, then another, $600, and $1,400 is on its way— check your mailboxes today!
Increase In Money Supply is Inflation
Always and everywhere rising prices are created first by an in crease in the money supply. The M2 supply of U.S. Dollars has risen by 5.8% per year over the past decade. That’s already high.
No wonder stocks, real estate, gold, silver and every other hard asset— everything is bound to go up in coming months. Give it another six months to a year for that money to bounce through the economy and you should expect inflation to be increasing prices of just about everything.
Think about it, we unleash almost $5 Trillion Dollars into the economy and what should we expect? Inflation. Let’s say prices rise 10% next year. Does all that money make the average American richer or poorer? Even if you income goes up half that, (very doubtful) you ought will exceed your income because your money will still buy less.
Inflation can really kill conservative investors. This inflation situation cannot be ignored when gas prices, food prices, and half the stuff at Amazon and Walmart go up in price this year.
With bonds, bank CDs and checking accounts virtually guaranteed to lose money, you can’t afford to store your wealth in the once “safe” places. At today’s lofty, nosebleed U.S. Stock prices, the risks are awfully high.
We own Gold, we own Silver, we feel very comfortable that even five years of 10% inflation won’t change our lifestyle in the least.
Watch inflation carefully, it’s the most hostile and destructive tax Washington could ever create— and it’s headed your way!
