- The central bank continues to engage in a wide variety of unprecedented efforts to "stimulate" the economy and provide income to unemployed workers and to provide liquidity to financial institutions.
- In order to keep interest rates low, the Fed has been buying up trillions of dollars in assets-including government debt. This has fueled new money creation.
- February's surge in money-supply growth makes February the eleventh month in a row of remarkably high growth, and came in the wake of unprecedented quantitative easing, central bank asset purchases, and various stimulus packages.
- Historically, the growth rate has never been higher than what we've seen over the past ten months, with the 1970s being the only period that comes close.
- It is likely that growth will continue for the time being as it appears that now the United States is nearly a year into an extended economic crisis, with around 1 million new jobless claims each week from March until mid-September.
For further details see:
February Money-Supply Growth Hit Yet Another All-Time High