No Money, No Growth

cashJohn Rubino: Last August, the US Fed stopped creating new currency out of thin air and dumping it into the banking system.

Which is another way of saying the US money supply stopped growing.

Here’s the adjusted monetary base — a proxy for the amount of new currency the Fed is creating — over the past eight months:

Monetary base 2015

Then a whole bunch of other things started happening.

First, the dollar soared, becoming by far the world’s strongest currency.

And Americans started buying less stuff:

US retail sales past year 2015

And then US factories started making less stuff:

US industrial production May 2015

The latest batch of economic reports now implies zero growth for the entire first half of 2015.

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