The M2 curve has been rising at an exponential pace in 2020 – and almost vertical since the pandemic started. If we keep doing this, we will be facing a major financial disaster in…a matter of months before the wheels start coming off.
M2 is a calculation of the money supply that includes all elements of M1 9cash and checking deposits) as well as “near money” (savings deposits, money market securities, mutual funds, and other time deposits).[Unfortunately, however, it seems that] our leaders do not have any intention of changing course -any time soon]. During 2020 the Federal Reserve has been pumping money into the financial system at a rate that we have never seen before, and they have indicated that they plan to continue to support the financial markets as we head into 2021. [In addition,] Chicago Federal Reserve Bank President Charles Evans just said last Monday that there is still “quite a long ways to go” for the U.S. recovery from the coronavirus crisis, adding that he expects the Fed to keep interest rates at their current near-zero level until perhaps into 2024. [Frankly,]…the federal government is going to continue to pump out “stimulus package” after “stimulus package” [until this health/economic crisis is over].
As John Williams pointed out very strongly during his interview with Greg Hunter: “there is going to be more deficit spending. It’s just a matter of how radical it will be…The more left we go, the more rapid will be the demise of the dollar. Eventually, it will be a hyperinflation in the United States. What I am looking at here is this evolving into a hyperinflationary Great Depression.”
Williams believes that “To save yourself, you have to preserve your wealth – your dollar assets – and to do that you have to convert your dollars into physical gold and silver…and just hold them. They will retain value over time as opposed to paper dollars that will effectively become worthless. You’ll be getting a lot of money from the government, and they will keep giving you more and more and more, but that’s going to be an environment of rising and rising inflation. It’s not necessarily going to buy you more…Hyperinflation will bring political disruption…Hyperinflation is a form of default. Gold is telling us hyperinflation is straight ahead of us.”
While gold and silver will almost certainly keep rising as the value of the dollar continues to be destroyed. [unfortunately, however,] even those that invest in precious metals are not going to win in the end. [Why?] Because the truth is that the complete collapse of our financial system is not going to benefit any of us, and there is going to be no way to avoid such a fate if we keep going down this very dangerous path.
Editor’s Note: The above excerpts from the original article* have been edited ([ ]) and abridged (…) for the sake of clarity and brevity. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.
(*The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)