There's a new article on KingWorldNews titled, 'Alert: Money supply shocker + silver on the cusp of a major upside breakout' that shows a very interesting chart that I believe is yet another hint that something very unusual is headed our way and of course, it's related to finance and money.
This chart is published by the FED itself and plots the amount of M2 money supply available. M2 is cash held in savings and checking accounts and non-cash assets that can be easily converted to cash. I've picked up rumblings here and there in the last few weeks of a brewing liquidity crisis. Well, this chart pretty much confirms that indeed, we are facing a cash crunch the likes we haven't seen since the double digit interest rate environment of 1980!
The stagflationary 1970s saw two negative drops in money supply, first around 1970 when it went to about -4 and again in 1974 when it went to about -5.5. The negative low 'peaked' at about -6 in 1980, right around the time former FED chair Paul Volcker jacked interest rates up to 19%.
This chart now shows that we've surpassed the 1980 'negative peak' as I like to call it, to an eye popping -7.7 and while the chart only goes back to about 1960, this is clearly the worst money supply crunch we've seen in at least 60 years. In fact, it blows the 1980 negative peak right out of the water.
Another thing I should mention is that all the previous M2 money supply crunches shown on the chart appeared just as we entered recession. An M2 supply drop of -7.7, the likes we haven't seen in our lifetimes, suggests something ominous. At the very least, it suggests a big slowdown is coming.
What is equally striking is what preceded this drop. There have been several 'positive peaks' in the last 50 years, three of which hit +10, the last of which occured around 2010 with a peak of just under +11. The central bank money printing spree during the Covid lockdowns pushed the M2 money supply to just under +25. This is two and a half times more than anything we've ever seen regarding M2 money supply. The real shocker is that just as it almost kissed +25, the line began a precipitous drop so sharp it is incomparable to all the previous drops, all the way down to -7.7.
To go to such extreme up and down points in such short order should have everyone jumping out of their seats. I'm sure the big bankers are aware and are scrambling to come up with a solution to the problems they created. I'm no banker but I'm sure there are things going on behind the scenes we cannot understand or comprehend. Those banksters like it that way.
So now a super liquidity crunch is upon us. I recommend holding a bit of cash (and silver as backup) as we may see restrictions in the near future on how much of our money we can access. Remember what they used to say in the 1930s and onward, ' DON'T TRUST THE BANKS'!
Begs the question. Where's it all going? Maybe some of the smart money is going into silver? Silver was smacked down mere weeks ago all the way down to just below $20 through massive silver derivative selloffs amounting to some 1.4 Billion ounces. Today, silver has recovered most of its losses and appeared poised for another breakout.
I've placed an order for some new Silver Maples and there's now a wait list. It'll be a few weeks before I get my new coins. I do have some available now though. See links below.
Here's another interesting chart, the velocity of M2 money supply. See references section for more info on M2 money supply.
Peace and love to everyone.
P.S. Need silver? I have made 7 Canadian Mint Reverse Proof Privy 'Gramophone' Silver Maple 2019 pure silver one ounce coins available for sale with low, low ship costs on my Ebay channel. Show your support by buying a coin. Send me a quick note letting me know you saw this post on PublishOx (or Substack) and get 20% off already low ship fee of just $5 within Canada and just $6 to USA. Once they're gone, they're gone. Click the image below to view the listing. I have other silver bars and coins listed so be sure to browse my other listings as well. Thank you for your support!
Royal Canadian Mint 2019 'Gramophone' Reverse Proof Privy Silver Maple Coin
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