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Mike Van Winkle

Money Supply Watch

I’m not a trained economist. But shouldn’t this worry us? This chart tracks M1 data over the last year. M1, according to Wikipedia, is “currency in circulation + checkable deposits (checking deposits, officially called demand deposits, and other deposits that work like checking deposits) + traveler’s checks.” This is a primary measure of money supply. Note that the data only go through November of last year. [Data from FederalReserve.gov]

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  1. Here is a chart from ShadowStats.com showing the change in the money supply (M1, M2, and M3) over the past five years:

  2. Sorry – I should have realized that the software would strip out the lik and image tags. The chart I meant to show can be found at: http://www.shadowstats.com/charts_republish#m3

  3. It depends on whether or not demand for money has increased proportionately. From what I understand, it hasn’t though.

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