The increase in the U.S. money supply in the past two weeks is absolutely shocking. Something must be seriously wrong behind the scenes at the U.S. Treasury and Federal Reserve for the M1 Money Supply to increase more in the past two weeks than it did in six weeks during the beginning of the pandemic shutdowns in late March.
I wrote about this in my last subscriber video, INVESTOR WARNING: Markets Just Propped Up By Half-Trillion In Liquidity, Brace For Major Correction Ahead. In just one week, the M1 Money Supply surged by $498 billion. While that was stunning, I was quite shocked to see another huge increase in the past week.
The FRED – St. Louis Federal Reserve just updated their M1 Money Supply figures showing another increase of $312 billion, on top of the $498 billion added the week prior. So, the total increase in the U.S. M1 Money Supply for Nov 16th to Nov 30th is a shocking $809 billion. Compare that to the $388 billion increase from Mar 16th to Mar 30th when the pandemic shutdowns first began.
Do you know how much $810 billion equals? That turns out to be four years of global gold mine supply totaling 440 million or 40 years of global silver mine supply of 32 billion oz. This is beyond stunning to see this much of an increase without any news release by the U.S. Treasury or Federal Reserve.
Of course, it made sense to see the M1 Money Supply to increase after the pandemic shutdowns and stock market meltdown… BUT WHY NOW??? Take a look at the following chart from the St. Louis Fed (FRED).
From March 16th to April 27th, the U.S. M1 Money Supply increased $773 billion… six weeks. Why on earth has the M1 Money Supply increased $810 billion… in TWO WEEKS!!!
Again, something very serious must be going on that we don’t know about because this is certainly unprecedented. I thought just maybe this was some sort of accounting mistake. But, when I went to the Board of Governors of the Federal Reserve Money Stock Release Dec 1oth, I found the following chart:
And there they are, highlighted in YELLOW. What’s interesting is that the M2 Money Supply figures actually declined a bit during the same period.
The next chart is the Long-Term M1 Money Supply chart since 1980. As you can see, in the past eight months, the M1 Money Supply has gone STRAIGHT UP.
Actually, it has gone more STRAIGHT UP in the past two weeks than it did during March-April this year. To see the M1 Money Supply increase this quickly, again, something must be seriously wrong… which we will likely find out sooner or later.
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Amazing update. You da man!
thank you steve for your valuable information
Could the huge increase in M1 be an indication treasury securities are being liquidated by institutions and the FED has become the buyer of last resort? Nominal yields have been rising.
I was thinking about the same sort of thing. There is no way this is a reduction of regular U.S. Savings Deposits of $809 billion in two weeks. It seems Fed induced.
Fantastic work. This analysis just out from Best Evidence ties into your observations – no speculation, PROVES simple money cloning double dip explicit FRAUD by the Fed QE
Good observations Steve, very interesting.
And just at the time when Texas sues 4 battleground states via SCOTUS…and YouTube announces unprecedented censorship from 09-Dec.
Curiouser and curiouser 😉
Does this mean the window to buy gold under $2000 and silver under $30 is closing?
Maybe they are buying stocks???
I am aware of a local San Francisco business that received thousands of dollars via a “courtesy cash deposit related to your Paycheck Protection Program loan” by a “Too Big To Fail” bank yesterday (12/9/20). The business in question was notified that:
“*This deposit is not part of the Paycheck Protection Program.
*You do not need to repay this deposit.
*You should not include this deposit in your PPP loan forgiveness application.
*You will see this as a credit to your business checking account on your upcoming statement.”
Steve… I suspect that this isn’t the only business that has received a “courtesy cash deposit”. I also suspect that your analysis is tapping into this dynamic. Send me an email if you would like more detail.
“THE SECRET OF OZ” Bill Still’s video on MONEY, dates back to 2009 BUT could be worth a visit or revisit if you have not already seen it.
Here’s the link:
From what I understand, M1 is the narrowest measure of money supply mostly currency in circulation. Are they getting ready to unleash Fed $ (CBDC)?
Gentlemen…is this increase in M1 nothing more than the FED selling bonds in preparation for Congress passing the $908 billion stimulus package?
Who would the FED sell the bonds too? They are one of the least desirable “investments” on planet earth.
This can’t be the case because it would drive up M2 as well as M1. Unless there’s some mechanism in place that is simultaneously driving M2 down?
Selling Bonds reduces Money Supply
Good work steve you are the 1st person to pick this up. soon the pin will find a bubble.
Companies like mass mutual and Microstrategy selling their treasuries and buying Bitcoin, 100 million and 500 million worth respectively…Fed has to pick up the slack…
While I would question their decision to buy Bitcoin, I wouldn’t question their decision to sell U.S. debt [“treasuries” sounds better than debt from an insolvent entity doesn’t it?].
So the Fed has to “buy” what others sell; they have to be net buyers.
Microstrategy just issued 600 million in bonds to buy more BTC…this is just the beginning of BTC world wide acceptance. I still hold my gold and silver just in case…..it doesn’t hurt to diversify….
Corporate [junk] bonds issued to buy Bitcoin with? Sounds about right.
Not using cash on hand; only cash they can raise by selling debt.
actually not correct. Michael Saylor said in his last CNBC interview that his company makes about $500 million in cash every year and he plans to put that cash to use buying BTC, this time he also added debt to add more, I wouldn’t do that, but hey, he’s the billionaire, not me
Microstrategy a publicly owned company, so Saylor isn’t risking his own money by selling bonds to buy Bitcoin.
Since he is rewarded from the company as the Chairman, I would think he cares very much on the success or failure of Micorstrategy.
“On MicroStrategy’s quarterly earnings conference call in July 2020, Saylor announced his intention for MicroStrategy to explore purchasing Bitcoin, gold, or other alternative assets instead of holding cash. The following month, MicroStrategy used $250 million from its cash stockpile to purchase 21,454 Bitcoin. In September, Saylor announced that MicroStrategy had purchased an additional $175 million worth of Bitcoin. Saylor told CoinDesk, “I want something that I could put $425 million into for 100 years.””
Kudos to you, Steve!
You’re the first and only guy(until now, these 2 weeks) talking about this M1 increase!
I’ve been googling for any info about this, amazingly nobody else has written anything about it xD xD xD
This M1 increase is probably the most underrated news for all 2020, something huge and ugly is coming…
There is no mystery…it’s the end of the fiat monetary system and geometric amounts of fiat are required to keep things going. Rob Kirby has been reporting this for months. This massive amount of fiat has to be created, they have no choice. The boyz are doing everything to hold the metals and crypto back to keep the public wrong footed. Don’t listen to the metals only or crypto only boys..own both to protect yourselves.
I agree with you HLP. This is the end of the fiat USD as we know it and people should own both PMs and Cryptos so to have both feet for the extremely uncertain and volatile times ahead!
Buying bitcoin or any other crypto coin is pure speculation. It will ultimately go to zero.
Bitcoin and crypto are the next technology in a digital age. Gold only people can’t seem to understand that you will never exchange gold or silver for goods and services. That doesn’t mean gold and silver aren’t valuable as a hedge against fiat devaluation. I don’t want to exchange my gold or silver for toilet paper. That’s what fiat is for. I own both Gold/Silver Bitcoin/Crypto just for those reasons. Don’t be shocked to see Bitcoin well above 100k on this next halving cycle…and don’t be surprised to see it fall 85% as it did during the other two halving cycles. This is exactly why few average people will own it…when it is going up they will say; ” it’s a ponzi”. When it goes down they will say; ” it’s over”. Then the cycle repeats going ever higher further establishing it’s network effect which is priceless.
Hey buddy, please, come back pumping cryptos when they go down 90% again. Every Tom, Dick, and Jane can pump something at its high. I always see you crypto pumpers here when bitcoin goes up, that tells me all about your mental capacities I need to know.
Also, please pump your cryptos under articles related to cryptos. It’s obnoxious to overtake the entire thread with your ideology.
Ned and HLP,
So when the dollar collapses, how are you going to sell your bitcoins?
They will be converted to $USD when you sell ! Worthless ! Good luck trying to sell your bits for physical gold and silver!
Steve, excellent job. Surreal. Phase transition eminent.
For what it’s worth, lots of people (millions?) with 401K/403B retirement plans are being prompted to get out of money market funds by the end of the year.
Last May, there was a fee waiver on money-market account expenses from regulatory agencies. When this expires Dec 31., many of the funds will start producing negative yields.
Places like TIAA/CREF that manage trillions in retirement funding have been notifying people they may want to get out of such money market funds (which are almost entirely US treasuries) and move to other investments.
I know I did that with the retirement funds I had sitting in “money market” cash, and so its curious this “forced move” out of treasuries conicided with the M1 sprint.
Treasuries are not M2, so how would M2 remain unchanged in this scenario?
The notice I got from TIAA/CREF about money market yields going negative due to regulatory waiver lapse, and advising removal of funds, was dated December 3.
Despite the increase in M1 supply and a weakening US Dollar, Gold and Silver are not doing what they are supposed to.
Markets are not efficient, there is a lag factor especially on PMs as the interest on them is very minimal.