- The MZM Money Stock measures the liquid money supply in the current US economy.
- The MZM Money Stock is up over 20% or $3.7 trillion since January, reaching an all-time high.
The Money Zero Maturity (MZM) Money Stock has reached an all-time high of 20,767 billions, representing a current liquid money supply of $20.7 trillion. The MZM Money Stock is up 20% or $3.7 trillion since the beginning of the COVID-19 economic crisis, representing a surge in the total money supply.
The Money Zero Maturity (MZM) Money Stock measures the liquid money supply in the US economy. The MZM includes physical currency (paper and coin money), checking and saving accounts, and money market funds. In other words, the MZM Money Stock helps quantify the total money supply.
Comparing to 2008
During the Financial Crisis of 2008, the MZM Money Stock surged $1.5 trillion during the course of a year and a half. It just the past 5 months, the MZM Money stock has surged over $3.7 trillion, increasing at a far greater pace than the 2008 Recession.
Concerns Over Inflation
The rapid surge in the monetary money supply unequivocally raises concerns about inflation. With the MZM Money Stock rising at an exponential rate, many voice concerns the rapid influx of new money in the economy.
As a result, limited inflation assets like gold and Bitcoin have seen a surge in interest amid COVID-19. As reported by The Crypto Associate, Bitcoin’s inflation rate will soon match gold at 1.8% as the halving reduced the new Bitcoin emission.
What’s more, is that Bitcoin is not the only cryptocurrency with a low inflation rate. Following Ethereum 2.0’s complete migration to proof-of-stake, Ethereum’s inflation rate will also be less than 2%. As a result, digital assets may serve as a hedge against hyperinflation alongside gold.
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