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The Dollar Shrinks As Money Supply Surges

Photo by Adam Nir / Unsplash

Since 2008, U.S. M2 money supply has roughly tripled, while the purchasing power of the dollar has fallen about 38%. (M2 includes cash, checking and savings deposits, and other easily accessible money.)

The relationship is hard to miss. As more money enters the system, each dollar buys less. The post-2020 surge makes the trend unmistakable.

Source: Federal Reserve (FRED), U.S. Bureau of Labor Statistics; via Jeffrey A. Tucker

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