Dr. Jeff, do you believe the Global M2 Supply will increase by a substantial amount even without any crisis like COVID?
If yes, what factors would mainly cause the Global M2 Supply to increase witho...
Global M2 monetary supply is already starting to increase again.
Three examples of how:
- Lower interest rates literally translate immediately into lower variable/short term debt payments (e.g., HELOCs, credit card loans, small business loans), meaning higher cash savings for individuals and businesses... that is, higher M2.
- A weaker US dollar means better foreign currency exchange rates, and easier (US denominated) debt repayments around the world... increasing M2.
- Economic growth means more bank lending and growth of M2.
Three examples of how:
- Lower interest rates literally translate immediately into lower variable/short term debt payments (e.g., HELOCs, credit card loans, small business loans), meaning higher cash savings for individuals and businesses... that is, higher M2.
- A weaker US dollar means better foreign currency exchange rates, and easier (US denominated) debt repayments around the world... increasing M2.
- Economic growth means more bank lending and growth of M2.
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