Summary

The monetary base, M1 and M2 are all close to their all time high while the M1 Money Multiplier (M1MM) remains substantially lower than normal (as measured by the median). But compared to last year it continues to increase quite substantially driving growth in the M1 Money Supply. The monetary base in USD terms continues to remain largely unchanged as has been the case now for about a year. The M2/Base ratio increased yet again quite substantially on last year leading to a 6.36% increase in M2 on last year. If the two ratios (M1MM and M2/Base) start approaching their historical normal levels, the increase in M2 money supply will be substantial unless there is a corresponding decrease in the monetary base. If M2 were to increase substantially, there will be a real risk of inflation increasing dramatically further down the line (see

here

for more on this).