(TheLastPatriotNews.com) – The United States will soon see another 1930s-style “Great Depression,” possibly even worse, due to a development unseen in nearly 100 years – namely, a staggering crash in money supply, according to a doomsday warning.
On President Joe Biden’s watch, the nation is experiencing “higher prices, more government spending and debt, and lower levels of household savings” – plus a collapse of money supply, which could be a recipe for a giant disaster, according to a Fox Business report.
The article by author Justin Haskins, chief editor of StoppingSocialism.com, stresses that the only time the United States has seen such a money supply fall was at the height of the Great Depression, in the 1930s.
Yet, this time, unlike 90 years ago, the rare development isn’t combined with falling prices but with continuing higher inflation, Haskins points out.
The report looks at how the US government responded to the COVID-19 pandemic by hiking government spending, first under President Donald Trump, then under Joe Biden. At the same time, the Fed kept “kept interest rates extremely low, despite warnings from economists about the threat of future inflation.”
Government spending has been kept at levels much higher than before the pandemic, and inflation began to shoot up in 2022 as the Fed increased interest rates rapidly.
Yet, while inflation declined somewhat, the decrease wasn’t sufficient to deflate prices, Haskins notes.
“Incredibly, however, the money supply — the amount of cash, checkable deposits and bank savings accounts — has substantially decreased. That means even though prices are still going up, the amount of money available is continuing to drop, putting an unprecedented strain on American families,” the author observes.
He is alarmed that the past three quarters have seen a negative annual M2 money supply growth, showing a rapid decline in the “amount of money available.”
At the same time, America is experiencing a phenomenon that “has never occurred before”: inflation keeps increasing despite the dwindling money supply.
The Fox Business author concludes that, as a result of this “disturbing” situation, “a gigantic economic crisis” could be imminent.
He stresses that the coupling of reduced money availability and growing prices means Americans resort to credit cards and other consumer debt more than ever.
“If the White House and Congress do not cut inflation-causing government spending soon, the results could be catastrophic,” Haskins bodes.