Money supply

That is completely unsustainable.

That money supply needed to keep up with the deficits and the structural issues you have in the economy will need to accelerate.

So I do expect it to go from 7 to 8 to 10 to 12 over time.

If you're smart and you have a rising tide, that's how you really create generational wealth.

We've got a much more honest and normally functioning gold market now.

And until we solve that problem of debt creation deficits, you got the permanent bid and support for the gold price behind you.

What is the order of magnitude that we're talking about? I mean, if you look at the M2 money supply, for example, you go back a few decades, the compounded annual growth rate is somewhere in the 7, 8, 9% rate, depending on when you're looking at it.

Have we now entered a new acceleratory phase or should we continue to expect about this in a type of a linear fashion?

Let me grab, where did it go? I was trying to find where did it go? Do I still have it up here? This too is what we're going to be, what's going to be problematic heading into 2027.

Because regardless of what Fed rates are indicating or trying to signal money supply growth accelerated in July to a 59 month high.

You can't hide that.

And so PCE 3.7%, CPI well beyond the 2% Fed rate target.

So they should have raised a lot higher than if they really wanted to squash the concept of consumer price increases, but that's not the solution there.

But what is becoming obvious is the fact that money supply year over year after the QT process, that ended the biden administration so as we're witnessing here we saw the early trump surge which is just this mountaintop here donald trump started biden capped it off and then biden's entire presidency was this downward trajectory here to the point where we got down to somewhat of a deflationary, contractionary environment.

And by the time Biden left office, we were already on the up and up.

And so now what we're experiencing in real time from this moment on, from the time we went back above the red to where we are now is the, as it says here, blue line is the total money supply.

Trump attributed missing or altered information to the FBI under Christopher Wray.

In economic news, July money supply growth reached 8.62% year-over-year under the Rothbard-Salerno True Money Supply Measure, the fastest pace in 59 months.

Second-quarter GDP growth was 1.5%, more than 1.2 million jobs have been lost since the end of 2025, and real wages have declined since March.

Core personal consumption expenditures have remained above the Fed's 2% target for 65 consecutive months.

But there's some other things going on, too.

And that's the so-called inflation that the Fed defines, which they misdefined anyway, because inflation is the money supply, which continues vertical.

In fact, the latest report on M2, the July report shows the.

And a year-over-year growth rate in the money supply of 8.62% in one year.

No, the 10-year rate, excuse me.

But it was 8.62% in that one-year period, July last year to July this year.

Meaning this chart will look even more lovely on the

upside shortly.

The price of crude is driving that.

So it's not like we expanded the money supply through quantitative easing and we're going to have to raise rates.

No, the damage that's being done from energy prices is causing them to have to raise rates.

But that will also create the need for intervention.

countries that have overextended themselves like we have.

So he's got the right personnel in place for this, and I think we're going to see this expanding rapidly.

And, of course, you've talked many times, Tony, about how rapidly the money supply is growing.

Well, there was a new article that came out yesterday from Mises talking about money supply growth has accelerated in July to a 59-month high.

But compared to Jerome Powell, Warsh is much more focused on the monetary side of monetary policy.

Powell wouldn't answer questions about abundance reserves or money supply issues.

His press conferences became all about interest rates and tariffs, while Warsh talks about commodity prices and M2.

Warsh read out seven principles, the fifth of which was that short-term interest rates are a predominant tool.

If money matters, why should short-term interest rates be viewed as the predominant tool for monetary policy? We would reverse the emphasis.

Policy should be judged first and foremost by what is happening to the quantity of money, rather than simply where policymakers set their overnight rate.

The Fed's balance sheets, bank reserves, credit creation, and the Treasury general account matter as well, particularly to the extent that it influenced the money supply.

So Washington also bashed forward guidance.

Listen to this clip from Silver Dragons.

And the first chart here is the US M2 money supply.

It recently hit a new all-time high of over $23 trillion.

Now, there was a big surge in the money supply after COVID with all those stimulus checks.

There was a slight pullback, but it is once again surging higher today.

And this is a big deal because there are now more dollars in existence than ever before.

But this pales in comparison to the global broad money supply, which has now surpassed 150 trillion.

When you look at this chart, you might think, Oh, Hey, that was my favorite cryptocurrency that went to zero.