A friend just emailed: The M2 money supply is up by over +39% since the start of the pandemic.

We’ve got excess cash, demand and insufficient supply leading to higher prices, higher costs – and higher wages.

We are in an inflationary surge – the normal response would be for central bankers to raise interest rates. Back in the early 1980s, mortgage rate in the U.S. were in the mid-tens – yeah, 14-15%. We have no idea where this is going but this is what happens when government policies create high inflation.

By EdwardM