Money supply growth fell again in February, falling even further into negative territory after turning negative in November 2022 for the first time in twenty-eight years. February's drop continues a steep downward trend from the unprecedented highs experienced during much of the past two years.
Since April 2021, money supply growth has slowed quickly, and since November, we've been seeing the money supply contract for the first time since the 1990s. The last time the year-over-year (YOY) change in the money supply slipped into negative territory was in November 1994. At that time, negative growth continued for fifteen months, finally turning positive again in January 1996.
During February 2023, the downturn became even bigger as YOY growth in the money supply was at –6.6 percent. That's down from January's rate of –5.0 percent, and down from February 2022's rate of 6.9 percent. With negative growth now dipping below –6 percent, money-supply contraction is approaching the biggest declines we've seen in decades. At no point for at least sixty years has the money supply fallen by more than 5.6 percent in any month.
Poster Comment:
Money Supply contracted 31% from 1929 to 1933. There were 123 million Americans alive in 1929. At least 3 million, maybe as many as 7 million, Americans starved to death before WW II started.
But this time we will see destruction of the dollar so we will cancel unpayable debts through Hyperinflation.