Part 3/10:
Recent data showcase a stark decline in the US money supply. Since November 2022, the economy has experienced its 12th consecutive month of contraction, with a total decrease of roughly $3 trillion—about 13% from its peak in April 2022. This rapid decline marks the steepest reduction since the Great Depression era.
The contraction of the money supply is happening at an accelerating pace, driven by multiple factors, including the Federal Reserve’s monetary policies and banking sector responses.
Why Is the Money Supply Shrinking?
Several interconnected reasons explain this significant curtailment: