Hello friends,
I was looking today at some charts about M2 money supply in the biggest economies(posted by my favorite Bitcoin OG "plan B). And the story is very very clear. Money printer go brrrrrrrrrrrrrrrrrrrr in all directions. United States, China, Europe, Japan..... All of them are hitting new all time highs in money supply!! BASTARDS!!
For U.S. M2, we see a small correction in 2022 2023, but now it is going up again, close to $22T and making new highs. In China, the curve is even more crazy, just going straight line higher, now above 330T CNY. Euro area also tried to slow down for a bit, but now again trending up, around 16T β¬. And Japan, the quiet one, is also at record high, more than 1,260T JPY.
Take a look at the chart published by PLANB:
What this mean? It mean the world never stop printing! Every government, every central bank, always need to push liquidity into the system. They cannot stop because the system need more debt, more credit, more money to survive. If they stop, recession hit, markets crash, politics go crazy.
But if they print forever, value of money go down. Your savings, your salary, your pension β they lose power slowly. This is the silent tax, inflation. It is not about prices of milk or bread only. It is about how fiat is designed to lose value over time.
This is why many people turn to Bitcoin. Bitcoin supply is fixed, cannot be printed. 21 million hard cap, no more. When you see these M2 charts, you understand why Bitcoin exist. It is not just speculation. It is an answer to unlimited printing.
So yes, money printer never stops. The only question is how long until more people realize that the exit door is small, and not everyone can fit inside. The exit door is Bitcoin my boys!
Have a nice weekend!