Our nation’s top financier had it correct 111 years ago: “Money is gold, and nothing else.” J.P. Morgan was convinced of this. Still, government agencies have schemed over the centuries to dismantle the gold standard.
Our guest commenter explains that, even though the Fed still holds gold, there was never a time when the dollar was less backed or less safe than now.
The slowdown in money creation could be signaling a recession.
The growth in the money supply has dropped precipitously over the last several months. As measured by M2, the money supply expanded by 6.6% year on year. That was down from April’s growth rate of 8.21%. In May 2021, M2 grew by 14.30%. M2 growth peaked at a record 26.91% in February 2021.
