A reduced money supply would mean more frequent but less severe recessions. Since infinite growth is obviously impossible, central banks merely delay the inevitable, and when the inevitable comes it is exponentially worse than it otherwise would be. Monetary policy is nothing short of totally asinine.
Very coincidentally, I looked up if I could find and M numbers on the EU. Could only find M3 (was on phone at work), but I was pretty nonplussed when I saw that it had been falling, not what I had expected.
Total Household Debt Reaches $17.05 trillion in Q1 2023 according to the NY Fed. Mortgage foreclosures remain low. Most M2 originates as debt created on a bank's ledger. How can M2 be going down while debt continues to rise?
@@DarkSTKx It doesn't. Before I posted my question here, I tried to find out what overall business indebtedness is in the USA for 2023, and I kept getting junk about the US debt ceiling and solicitations for business loans. So I have no "facts" as I found on the NY Fed site. I'd be surprised to learn that in the past 12 months US businesses have paid off 1T in debt or gone bankrupt and had 1T in debt wiped out. So, I'm puzzled as to WHY and HOW 1T has disappeared from M2. Over to you, Dr. Bob.
@@DarkSTKx Yes. And when you consider what's been going on for the past three years, I really don't trust any of the data anyway. Overnight reverse repo has gone from zero in 2020 to 2T today. Banks have borrowed 200B from the Fed over the last year, governments are monetizing trillion dollar annual budget deficits....Unless I can find some other reason, I'm thinking the trillion dollar drop in M2 is some kind of abstruse "technical adjustment".
how do you know how debt changes if majority of it is in offshore dollars? 😂 debt doesn't continue to rise, banks lend less and payed back credits create the deflation also non repayed dollar denominated debts worldwide add to that when second world currencies get crashed it automatically becomes deflative and us is also importing it plus capital that starts escaping these countries what may offset feeling the pain right away
You’ve been in a recession for two years now, heading towards a depression. If you jump out of a plane when did your fall start? When you decided to get in the plane.
@miguel Gold and silver won't go to the moon. They may help you maintain the value of your savings, whilst the value of the currency crashes, but they won't be going to the moon.
A reduced money supply would mean more frequent but less severe recessions. Since infinite growth is obviously impossible, central banks merely delay the inevitable, and when the inevitable comes it is exponentially worse than it otherwise would be. Monetary policy is nothing short of totally asinine.
Very coincidentally, I looked up if I could find and M numbers on the EU. Could only find M3 (was on phone at work), but I was pretty nonplussed when I saw that it had been falling, not what I had expected.
Lol. The money supply for anybody but commercial banks has been crashing since 2000. We never LEFT recession.
Very true
Absolutely marvelous!! I am delighted that you invited the one and only Ryan McMaken, one of the smartest people at the Mises Institute.
Thank you Bob and Ryan. Don't use the word money, use the word Currency.
The dollar is money.
@@OrthoHoppean gold and silver are money
bitcoins monetary policy is fixed till year 2140 and beyond. no one knows what fiat emperor jpow is doing next with rates
Raise rates and it removes money from the system.
What's interesting is the balance sheet was decreased by nearly a trillion YoY.
Total Household Debt Reaches $17.05 trillion in Q1 2023 according to the NY Fed. Mortgage foreclosures remain low. Most M2 originates as debt created on a bank's ledger. How can M2 be going down while debt continues to rise?
Well does household debt include business debt?
@@DarkSTKx It doesn't. Before I posted my question here, I tried to find out what overall business indebtedness is in the USA for 2023, and I kept getting junk about the US debt ceiling and solicitations for business loans. So I have no "facts" as I found on the NY Fed site. I'd be surprised to learn that in the past 12 months US businesses have paid off 1T in debt or gone bankrupt and had 1T in debt wiped out. So, I'm puzzled as to WHY and HOW 1T has disappeared from M2. Over to you, Dr. Bob.
@@exponentzero True, It does seem to be hard to get real data on what's going on.
@@DarkSTKx Yes. And when you consider what's been going on for the past three years, I really don't trust any of the data anyway. Overnight reverse repo has gone from zero in 2020 to 2T today. Banks have borrowed 200B from the Fed over the last year, governments are monetizing trillion dollar annual budget deficits....Unless I can find some other reason, I'm thinking the trillion dollar drop in M2 is some kind of abstruse "technical adjustment".
how do you know how debt changes if majority of it is in offshore dollars? 😂
debt doesn't continue to rise, banks lend less
and payed back credits create the deflation
also non repayed dollar denominated debts worldwide add to that
when second world currencies get crashed
it automatically becomes deflative and us is also importing it plus capital that starts escaping these countries what may offset feeling the pain right away
How about jettisoning the Federal Reserve, and a gold backed currency. Seemed to work for 150 years
You’ve been in a recession for two years now, heading towards a depression. If you jump out of a plane when did your fall start? When you decided to get in the plane.
Freeeeeeee bird!!
So this means Fed should print more money! Right?
Awesome episode.
#Gold & #Silver to the 🌕🚀
@miguel
Gold and silver won't go to the moon. They may help you maintain the value of your savings, whilst the value of the currency crashes, but they won't be going to the moon.
Yep
mountain of madness
oh sorry Mad Mountain of madness...
Salute And Cheers To All Stackers
i think it’d be a good idea for ryan to indicate NBER recession dates on his graphs, if possible