Does Your Fiat Money Still Have Any Value?

This is an issue that is becoming increasingly important at the moment.

Weeks go by, and unfortunately, they all look the same. I say unfortunately because the economic news are clearly not good at the moment. In the space of a month, more than 21 million people have joined the ranks of job seekers in the United States.

The United States ended February with an unemployment rate of only 3.5%. At the time of writing, the unemployment rate is now around 16%. Such a rapid increase had not been seen since the Great Depression in the early 1930s.

At that time, the unemployment rate was 3.1% just before the crash of 1929. The 15% threshold had only been reached in 1931. All this shows how serious the current situation can be considered. It only took a month for the unemployment rate to rise as much as it did in almost a year and a half at the beginning of the Great Depression.

Faced with this situation of extraordinary magnitude, the Fed made historic decisions, culminating in a liquidity injection of at least $8 trillion.

Represented by the M2 Money Stock Index, the outstanding money supply of the U.S. dollar increased by 6.7% in March 2020 alone:

M2 Money Stock and inflation, over 6 months in 2020

At such a frenetic rate of printing U.S. dollars during the year 2020, the money supply in the U.S. dollar could very well go from $16.5T to nearly $30T.