In that location are more U.S. dollars than ever, but the rate at which they motion effectually the economy has never been so low.

That was according to the Federal Reserve'southward own statistics on Aug. 31, which showed that a collapse in M2 money supply velocity had come despite record coin press.

The ascent of the "cantillionaires"

The M2 supply topped $eighteen trillion in 2020 cheers to coronavirus countermeasures, while velocity barbarous beneath ane.125 for the first time since at to the lowest degree the 1940s.

This yr marks a clear dissimilarity to historical data, with sudden volatility in both metrics worryingly clear to see.

Equally Cointelegraph reported, the record depression suggests that there is a huge amount of liquidity, only information technology is barely touching the economic system.

One reason for this is that the additional cash remains on the Fed's rest sheet afterwards its operations, meaning that those closest to the source of the money are those who see nigh all of its impact.

For RT host Max Keiser, this process, known as the Cantillon Effect, is turning those beneficiaries into a new sector of the elite — the "cantillionaires."

"This is the just nautical chart that gives you the best moving-picture show of what's happening. It explains everything," he tweeted alongside the Fed information.

"Trillions are being printed, but they're non circulating. The $ is beingness boarded by those closest to the printer."

U.S. M2 money supply velocity vs. money stock chart

U.S. M2 money supply velocity vs. money stock nautical chart. Source: Federal Reserve

Bitcoin supply data shows investment mindset

Money printing has come under the microscope in recent weeks, equally in addition to the velocity collapse, the dollar is circling multi-year lows against major currencies.

In Europe, meanwhile, a return to negative inflation comes despite the European Fundamental Bank's own coin-printing program, which 1 commentator said had definitively failed to attain its desired outcome.

Bitcoin (BTC), every bit a hard-cap currency with a variable, predictable supply, has simply benefited from cardinal banks' rise debt.

Information from on-concatenation monitoring resources CryptoQuant underscores the robustness of Bitcoin's supply velocity — fewer and fewer coins are circulating as investors cull to relieve, non spend.

Bitcoin money supply velocity vs. price chart

Bitcoin money supply velocity vs. price chart. Source: CryptoQuant

Last month, Kraken executive Dan Held included the supply readings as 1 sure sign that Bitcoin was in the midst of a fresh price bull run. Inflation and global debt as well made the listing.