PLW - In August Money Supply Growth Hit A Record High For The Fifth Month In A Row

• In August, for the fifth month in a row, money supply growth surged to an all-time high, following new all-time highs in April, May, June, and July that came in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages.
• Although some observers will likely claim that the current economic crisis is a result solely of the COVID-19 panic and resulting government-forced shutdowns, several indicators do suggest that the economy was primed for a recession.
• While Fed asset purchases are not solely responsible for the surge in new money creation, they are certainly a sizable factor. Bank loan activity has surged as well, also driving new money creation.

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