Thoughts From DJ: “Money Supply”
DJ: DID YOU KNOW?
Sept 15th Post 2024 (Money Supply)
When we absorb all the Intel in relation to the GCR-RV we have to consider some basic questions. At the top of the list is, where is the money coming from? There will either have to be a redistribution of wealth or an increase in the global Money Supply. ( Money supply refers to the total amount of monetary assets available in an economy at a specific time.
It includes various forms of currency, such as physical cash (coins and banknotes) and demand deposits (money in bank accounts that can be easily accessed). Money supply is categorized into different measures:, M0: Physical currency in circulation, M1: M0 plus demand deposits and other liquid assets and M2: M1 plus less liquid assets like savings accounts and time deposits )
As of 2024, the estimated global money supply is around $120 trillion. This figure includes various forms of currency such as cash, demand deposits, savings accounts, and other easily accessible assets. The M2 money supply being a broader measure, also takes into account less liquid assets like time deposits. Beyond traditional money, global financial markets—including investments, real estate, and other assets—total in the hundreds of trillions, with some estimates of total global wealth exceeding $1,540 trillion
The amount of money supply needed to run the global economy is not a fixed figure, but it needs to balance facilitating trade, investment, and economic growth without causing inflation. In practical terms, this depends on factors like productivity, the velocity of money (how quickly money circulates), and the state of the economy. Central banks regulate money supply to stabilize economic growth and control inflation, adjusting it as economies expand or contract. The current global money supply of around $120 trillion reflects these adjustments to keep the economy functioning smoothly.
If all currencies were hedged against hard assets (such as gold or other commodities), it would reduce the flexibility of central banks to adjust the money supply based on economic conditions. In such a system, the money supply would be limited by the availability of the asset, which could constrain economic growth, especially during times of increased demand. This would also lead to more stability in currency value but could make the global economy less responsive to economic crises or fluctuations in trade.
Historically, the gold standard imposed such limitations, which is one reason why modern economies moved to fiat currency systems. So even if we see a move to asset backed currencies there will have to be some form of a fiat component.
So back to the original question, where is the money coming from? You cannot just add currency to the money supply. And judging by the astronomical amounts being suggested, common sense says you would create global inflation overnight. Redistributing current global wealth would mean somebody is going to have to give up something.
People out there saying the GCR has started, answer that question before passing on information that cannot be substantiated. Instead of looking for funds to show up in your account pay more attention to the mechanisms required to move the money first. When those are in place then start believing.
We should quit watching how the plane takes off and worry more on how it’s going to land.
DJ