Dr. Jeff on Nostr: Global M2 monetary supply is already starting to increase again. Three examples of ...
Global M2 monetary supply is already starting to increase again.
Three examples of how:
- Lower interest rates literally translate immediately into lower variable/short term debt payments (e.g., HELOCs, credit card loans, small business loans), meaning higher cash savings for individuals and businesses... that is, higher M2.
- A weaker US dollar means better foreign currency exchange rates, and easier (US denominated) debt repayments around the world... increasing M2.
- Economic growth means more bank lending and growth of M2.
Three examples of how:
- Lower interest rates literally translate immediately into lower variable/short term debt payments (e.g., HELOCs, credit card loans, small business loans), meaning higher cash savings for individuals and businesses... that is, higher M2.
- A weaker US dollar means better foreign currency exchange rates, and easier (US denominated) debt repayments around the world... increasing M2.
- Economic growth means more bank lending and growth of M2.