Fed M2 and M1 Money Supply



What explains DXY’s drop and Queen Yellen’s regulatory comments is seen in the rise of the money supply. Despite 3 raises since December 2015, M1 and M2 continues to climb.

Current July M1 in billions Seasonally Adjusted is 3528.1 and 3531.4 Non Seasonally Adjusted. M2 current Seasonally Adjusted is 13,602.3 and Non Seasonally adjusted 13,548.70.

July 2016, M1 Seasonally Adjusted 3248.60 and Non Seasonally Adjusted 3249.4. Seasonally Adjusted M2 was 12,816.1 and Non Seasonally Adjusted 12,766.9.

December 2015, M1 Seasonally Adjusted was 3086.4 and 3140.5 Non Seasonally Adjusted. M2 Seasonally Adjusted 12,316.1 and Non Seasonally Adjusted 12,401.3.

July 2016 to July 2017 on an annual percent change as all data reports from the Fed, Seasonally Adjusted M1 grew + 8.7% and 5.6% for M2.

April 2017 to July 2017, M1 grew 11.4% and 4.9% for M2.

January to July 2017, M1 grew 7.9% and 5.1% for M2.

May to July 2017, M1 grew 9.3% and 4.7% for M2.

February to July 2017, M1 grew 9.3% and 5.1% for M2.

August 2016 to July 2017, M1 grew 8.0% and 5.6% for M2.

Currency in Circulation in billions March 2016 was 1359.5 and July 2017 is current 1486.40. Thrift institutions, mutual funds, credit and savings banks benefited as March 2016 balances went from in billions 239.50 to 271.40.

Commercial banks and Thrifts went from 517.20 to current 565.40.

Demand deposits from March 2016 to July 2017 went from 1281.80 to 1474.20.

Yellen’s Fed Funds raises became a stumulant to banks as they became flooded with cash. Since December 2015, M1 grew by 500 billion and 1286.2 billions for M2. Bank’s deposits grew by 192 billion in 4 months. Rather than sit idle, monies were put to work in money markets. A few points in interest rates is all it takes to profit and grow more money.

DXY’s drop, Gold’s rise and don’t change regulations to allow true price is now explainable. Don’t expect this to end well.

Brian Twomey

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