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Another Black Monday could soon be upon us
Another Black Monday could soon be upon us
The Federal Reserve’s policies threaten America’s financial markets and economy. They run the risk of a sharp recession and the risk of a repeat of Black Monday of 1987.
At the start of the pandemic, the volume of US dollars in circulation skyrocketed. For two years starting in March 2020, the M2 money supply – a measure of cash and checking deposits in circulation as well as savings deposits and other easily convertible assets – grew at an unprecedented annual rate of 16.5%. . That’s more than three times the appropriate rate to achieve the Fed’s 2% inflation target.
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