The most important money graph of all time.
So, you don’t have to be an economist to interpret this. I’ll explain it in layman’s terms without any fancy jargon.
Look at the curve above, this graph is directly from the Federal Reserve — who is in charge of printing US dollars. This curve impacts everyone of our lives because it determines the value of the dollars we own.
- How much purchasing power our dollars has (what a dollar can buy) is contingent upon how many dollars the FED has in circulation.
Notice the massive skyrocket from 2020 forward. If you notice, money supply has essentially been consistent since inception. Excluding what happened since the crash of 2008, where after the Fed fixed the problem by printing more money.
Spike in 2008
- Quantitative easing happened in 2008 — the governments solution to save the economy — simply print more money in order to keep interest rates low and borrowing to spike. If we borrow we buy.
Printing more money? What?
The problem is, when the government prints more money, it decreases the value of our dollar because there are now more dollars in circulation — inflation 101.
Spike in 2020
If you notice the curve, the Federal Reserve has printed astronomically higher, and disproportional amounts of money in ways unlike any other time in history.
Warning
This is a warning sign to take note of like no other. As we now can see by the graph that we are in a hyper inflationary period, the amounts you have in your retirement (let’s say $100,000), are not going to be the same $100,000 value you thought it would hold — simply because there is now a massive abundance of dollars starting in 2020.
It will take time, but be aware now, and pay close attention
This will take some time to impact the average American, like you and me. But this will have very sharp effects that are fairly unpredictable to know when we will feel the effects.
What you can expect:
- Prices in goods to skyrocket, particularly at the grocery store.
- Loans will be easier to get with borrowing at low interest rates.
- Your retirement and savings will be devalued by nature of economics and inflation.
- It will take time for you to feel the effects of the hyper printing of money, but just know it will come
There has been nothing of this magnitude in terms of finance and economics in US history. I’m startled this isn’t being talked about more, but then again, we are usually getting delivered media that is to distract us from the more important issues.
