US money supply falling at fastest rate since 1930s

Fed data on Tuesday showed that M2 money supply, a benchmark measure of how much cash and cash-like assets is circulating in the US economy, fell a non-seasonally adjusted 2.2% to US$21 trillion (RM93 trillion) in February from the same period a year earlier. — Bloomberg

THE US money supply is falling at its fastest rate since the 1930s, a red flag for the economy and financial markets.

Money supply has now been shrinking year-on-year since December, an unprecedented development in modern times that should make investors sit up and take notice – growth, asset prices and inflation could all weaken.