There are more US dollars there than ever before, but the speed at which they are moving through the economy has never been so slow.
This was according to the Fed’s special statistics as of 31 August, which showed that the reduction in the speed of the M2 money supply took place despite standard money pressure.
The ascent to the canton
M2 shipments exceeded $ 18 trillion in 2020 thanks to anti-coronavirus measures, while speeds fell below 1,125 for the first time since at least the 1940s.
This is a clear contrast to the historical data this year: the sudden volatility of both indicators is alarming.
As reported by Cointelegraph, the record fall indicates a huge amount of liquidity, but it hardly affects the economy.
One reason for this is that the extra cash remains on the Fed’s balance sheet after the operations, which means that those closest to the fund source see almost the entire effect.
According to RT host Max Keizer, this process, known as the Cantillon effect, transforms these recipients into a new sector of the elite – the canton.
“This is the only graph that gives you a better idea of what’s going on. It explains everything,” he tweeted with the Fed data.
Offer data for Bitcoin shows investment sentiment
Printing money has been the subject of intense scrutiny in recent weeks, and in addition to the sharp decline in the dollar, the dollar is heading for multi-year downturns against major currencies.
Meanwhile, there is a resurgence of negative inflation in Europe despite the ECB’s program of printing money, which according to one commentator has finally not had the desired effect.
Bitcoin (BTC), as a currency with a predictable variable ceiling, has benefited from an increase in central bank debt.
CryptoQuent’s chain monitoring data highlights the reliability of Bitcoin’s supply speed – fewer and fewer currencies are trading that investors choose to save instead of using.
Graph of price dependence of Bitcoin’s money flow rate
Graph the dependence of the rate of Bitcoin money on the price. Source: CryptoQuant
Last month, Dan Heald, CEO of Kraken, included the offer data as a sure sign that Bitcoin is in the middle of a new bullish price rally. Inflation and global debt topped the list.