How Much Money did They Print Last Year?!
Posted February 08, 2021
Get ready for a staggering admission.
If you add up all of the money the U.S. has ever printed… over 40% of it was printed in 2020 alone.
That is not a typo.
Patrick Bet-David pointed this out and he’s right: if you add up all of the money the U.S. has printed since its founding… over 40% of it was printed last year.
Bear in mind, we’re talking about money that’s actually printed, NOT issued as credit or loans (the mechanism through which most “money” enters the system today). So, we’re talking about actual cash that goes into the economy.
As I keep emphasizing, when it comes to monetary policy and financial insanity, this time IS different. The total amount of newly printed money policymakers used to fight the COVID-19 pandemic was unprecedented. It was BEYOND crazy.
Just how insane was it?
Investing legend Stanley Druckenmiller recently noted:
- In three months in 2020, the U.S. increased its deficit by more than it had during the past five recessions combined (’73, ’75, ’82, early ‘90s and Great Financial Crisis).
- Under Jerome Powell, the Fed bought more Treasuries in SIX WEEKS than it did in 10 years under Ben Bernanke and Janet Yellen.
- Corporate borrowing, which usually drops during recessions, actually INCREASED by $400 BILLION during the COVID-19 pandemic.
Again, this time IS different. And it’s going to unleash an inflationary storm that will annihilate portfolios and the real economy.
Indeed, the situation is so serious that former Treasury Secretary Larry Summers (no relation of mine) has stated that the Biden administration risks unleashing the worst inflation “in a generation.”
Bear in mind, Summers is a Democrat. So he is not simply engaged in partisan politics here.
Again, an inflationary storm is coming. And it’s going to annihilate most investors.
Those who are properly prepared however, will make literal fortunes.
Incidentally, I’ve written a more in-depth report that talks about this impending crisis. It also lays out the steps in which I believe it will unfold, so you’ll know exactly where we are when it comes. You can access the presentation here.
Editor, Money & Crisis