M2 money-supply represents most of the money in circulation. It comprises of hard cash, digital bank accounts, checks and other paper assets handled as money like Treasury bills, municipal notes etc. M2 in circulation is reported by central banks.
Here we have an US M2 money-supply chart, in bilions of US dollars, source: tradingeconomics.com:
By dividing the M2 money-supply by its initial value (626.5 at the end of year 1969) we get chart showing how many times has amount of money in circulation increased since then (M2 money-supply growth rate):
Now if you divide prices by this rates you can see real prices cleansed from the money printing. This way we have something stable what we can use as a benchmark for measuring changes in prices. That is what I call “M2 adjusted”.
No commodity can provide such stable benchmark, because commodity itself can be over or under valued. For example: if there is 10 times more money in circulation, the benchmark is 10, public can’t come and move it to 20 because they think at 10 it is undervalued. It is not perfect method but a path to get closer to the truth. And definetelly much better method than rigged CPI.
In the year 2016 there is 21 times more money in circulation than it was back in the year 1970. By the way, out of this data is possible to calculate how fast is the amount of money in circulation growing, the result is 6.84% p.a.
Hi! I’ve been reading your web site for a long time now and finally got the bravery to go ahead and give you a shout out from Austin Texas! Just wanted to say keep up the fantastic work!
I like the valuable info you provide in your articles. I’ll bookmark your weblog and check again here frequently. I am quite certain I’ll learn many new stuff right here! Best of luck for the next!
When someone writes an paragraph he/she keeps the idea of a user in his/her mind that how a user can understand it. Therefore that’s why this post is perfect. Thanks!
Oh my goodness! Impressive article dude! Many thanks, However I am experiencing problems with your RSS. I don’t know the reason why I cannot join it. Is there anyone else having similar RSS problems? Anyone that knows the answer will you kindly respond? Thanks!!
If you wish for to improve your know-how simply keep visiting this website and be updated with the hottest news update posted here.
Because the admin of this site is working, no doubt very shortly it will be well-known, due to its quality contents.
It is perfect time to make some plans for the future and it is time to be happy. I’ve learn this publish and if I may I wish to counsel you some attention-grabbing issues or suggestions. Perhaps you can write next articles regarding this article. I wish to read more things approximately it!
naturally like your web site however you have to take a look at the spelling on several of your posts. Several of them are rife with spelling problems and I in finding it very troublesome to inform the reality then again I’ll definitely come again again.
I just like the helpful information you supply to your articles. I’ll bookmark your weblog and check again right here regularly. I am relatively certain I’ll be told many new stuff right here! Good luck for the following!
I like the helpful info you provide in your articles. I’ll bookmark your weblog and check again here frequently. I am quite sure I will learn many new stuff right here! Best of luck for the next!
Its like you read my mind! You seem to know a lot about this, like you wrote the book in it or something. I think that you could do with a few pics to drive the message home a little bit, but instead of that, this is excellent blog. A great read. I’ll definitely be back.
Hi there just wanted to give you a quick heads up. The text in your post seem to be running off the screen in Ie. I’m not sure if this is a formatting issue or something to do with web browser compatibility but I figured I’d post to let you know. The layout look great though! Hope you get the problem resolved soon. Thanks
Why users still make use of to read news papers when in this technological globe everything is available on net?
I have been exploring for a little bit for any high-quality articles or blog posts in this kind of space . Exploring in Yahoo I finally stumbled upon this website. Studying this information So i’m happy to show that I’ve an incredibly excellent uncanny feeling I came upon just what I needed. I such a lot without a doubt will make certain to don?t overlook this website and provides it a glance regularly.
Good post however , I was wanting to know if you could write a litte more on this topic? I’d be very grateful if you could elaborate a little bit more. Cheers!
Howdy, i read your blog from time to time and i own a similar one and i was just curious if you get a lot of spam remarks? If so how do you prevent it, any plugin or anything you can suggest? I get so much lately it’s driving me crazy so any support is very much appreciated.
I have read so many articles about the blogger lovers however this article is genuinely a good paragraph, keep it up.
Hello, I enjoy reading through your post. I wanted to write a little comment to support you.