by Ryan McMaken
Mises.org
In October, money supply growth fell slightly from September’s all-time high, although growth still remains at levels that would have been considered outlandish just eight months ago. October’s easing in money-supply growth comes after eight months of record-breaking growth in the US which came in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages.
Historically, the growth rate has never been higher than what we’ve seen this year, with the 1970s being the only period that comes close. It was expected that money supply growth would surge in recent months. This usually happens in the wake of the early months of a recession or financial crisis. But it appears that now the United States is several months into an extended economic crisis, with around 1 million new jobless claims each week from March until mid-September. More than 6 million unemployed workers are currently collecting standard unemployment benefits, with eight million more collecting “Pandemic Emergency Unemployment Compensation.” Economic growth plummeted in the second quarter as GDP growth fell more than 9 percent.