Understanding Cryptocurrencies

Conclusion

Since 1960, the U.S. M2 money supply has grown at an average of 7.02 percent. It eclipsed 10 percent following the 2008 Global Financial Crisis and reached an eye-popping 25 percent in 2020 following a full embrace of deficit spending in the wake of the pandemic. U.S. GDP growth has averaged 3.17 percent for the same time period, though began trending lower after 2008 to average 2 percent. Logic would dictate that the historic inflation rate is roughly 4 percent, or the devaluation rate accounting for growth. Yet inflation from 2011 to 2021, as measured by a basket of goods in the Consumer Price Index (CPI), has averaged 1.71 percent. The discrepancy results in the incredibly flawed nature of inflation measuring. If medical costs inflate ...