What happens when the supply of money in circulation (M2) drops? That may sound like a boring question until one considers that every time the supply of money has dropped over the past 100 years, we’ve seen a recession an average of 11 months later.
The supply of money reached an all-time high in July of 2022, and then dropped the most it has ever dropped since the Great Depression, until April 2023, when the Repo Market began to drop instead.
The Repo Market is another usually boring Federal Reserve function, but it’s important right now as the only reason the supply of money stopped dropping is that interest rates on Federal Savings Bonds grew to the point where banks can make more money by putting excess cash into Federal Savings Bonds instead of parking it in the Repo Market.
The Repo Market will run dry in mid-January 2022, at which time the supply of money will start to drop again.
At the same time, Federal Debt is running at an all-time high, such that the interest on that debt has risen from $200 billion just a few years ago to over $1.65 Trillion today – choking out other vital Federal spending.
Based on all of this, what will our economy do in 2024? Listen now to hear our prediction.
Also – with a monumental election in Taiwan likely to make China believe that a peaceful reunification with Taiwan is impossible, mixed with China’s economic woes and an upcoming demographic collapse in China, China’s ability to invade Taiwan ends sometime around 2030, making any invasion of Taiwan necessary within the next few years.
China may decide to invade Taiwan while the worst and most corrupt President in US history is still in office (particularly when that President has taken tens of millions of dollars from China through his son’s shell companies).
The seven top companies in the S&P are all dependent upon microchips made in Taiwan, so what would an invasion of Taiwan mean for the US economy, even beyond 2024?
This episode of The Voice of a Nation with Wallace Garneau will answer that question as well.
Finally, what does a new Harvard poll say about America’s young adults? In what may well be the most shocking poll in American history, this Harvard poll makes Americans between 18 and 24 sound like the Hitler Youth. These are the children of Biden’s America.
The Voice of a Nation [malcolm at eight] can be heard on weeknights at 8 pm E.T., with an encore at 8 am E.T. the following business morning. Listen on iHeart Radio, our world-class media player, or our free apps on Apple, Android, or Alexa.