Never Go Full Weimar: America’s Monetary Base
Has Grown 6 Times Larger Since 2008
Michael Snyder

A lot of people have been waiting for a meltdown of America’s financial system, but the truth is that it is already in the process of melting down.  As you will see below, the size of the monetary base in the United States has gotten more than six times larger since 2008.  If we continue down this road, it won’t be too long before we start looking like Germany during the Weimar Republic.  But if we stop creating money at a feverish rate, we won’t be able to service our debts and we will plunge into a very deep economic depression.  Those that run things desperately want to avoid short-term economic pain, and so they just continue to take the easy way out.  Unfortunately, taking the easy way out time after time will only lead to heartache.

Instead of examining M1 or M2 as many others tend to do, in this article I am going to look at our monetary base.  If you are not familiar with that term, the following is how Investopedia defines it…

The monetary base is the total amount of a currency in circulation or held in reserves. Money in circulation is anything that is held and used by the general public while reserves refer to commercial bank deposits and any money held in reserves by these institutions at the central bank.

For most of our history, the growth of our monetary base was very stable.

But then the financial crisis of 2008 arrived, and it started growing at an exponential rate.

As you can see from the chart below, the size of the monetary base went from less than a trillion dollars in 2008 to nearly six trillion dollars today…

There tends to be a lag between when the monetary base rises and when we see prices increase throughout the economy.

For example, the dramatic spike in the monetary base that we witnessed in 2020 did not immediately cause prices to soar.

But in 2021 and 2022 we certainly felt the pain.

Throughout 2022, the size of the monetary base was actually falling as the Federal Reserve attempted to battle inflation, and that resulted in prices moderating to a certain extent in 2023.

Unfortunately, the size of the monetary base started to go back up in early 2023, and now it is rising very sharply once again.

That is definitely not good news for U.S. consumers in 2024 and beyond.

We certainly don’t need more inflation, because just about everything has become painfully expensive these days.  The following comes from CNN…

From the historically unaffordable housing market and budget-breaking day care rates to high car prices, the United States has a cost of living problem many years in the making.

Parents of young children are making difficult choices to afford child care — or they’re opting to evade it by dropping out of the workforce altogether.

Parents are also struggling to buy bigger cars to haul around their growing families while simultaneously socking away some money in college savings plans.

For too many, the American Dream feels like an illusion.

So why don’t those in charge stop creating so much money?

Well, the truth is that if they stop we won’t be able to service our rapidly growing debts.

Today, U.S. consumers are 17 trillion dollars in debt, corporate debt is at the highest level ever, state and local governments are drowning in debt, and the federal government is 34 trillion dollars in debt.

My name is Michael Snyder and my brand new book entitled “7 Year Apocalypse” is now available on Amazon.com.  During this season, I would like to encourage you to send digital copies of my new book to your family and friends as gifts.  That will help to support the work that I am doing, and it will help to multiply the impact of the book.  In addition to my new book I have written five other books that are available on Amazon.com including  “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, “Get Prepared Now”, and “Living A Life That Really Matters”. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

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