US and China just added $7.9 trillion to their combined money supply in one year. That's August data. Total now sits at $76.4 trillion — a record.
China's M2: $53.1 trillion
US M2: $23.3 trillion
Both at all-time highs.
This marks the 8th straight month of $7+ trillion yearly increases — longest run since 2021. Before COVID, the average annual increase was around $3 trillion. We're now running at more than double that pace.
The money printer isn't just on. It's been running in overdrive for four years straight. When central banks flood the system with this much liquidity, it doesn't just sit idle — it finds its way into assets. Stocks, real estate, commodities, crypto.
This is the backdrop. Liquidity drives markets more than most people want to admit. You can debate valuations, earnings, technicals all day. But when this much fresh money enters the system, it has to go somewhere.
Keep this chart in mind next time someone asks why everything keeps going up.
China's M2: $53.1 trillion
US M2: $23.3 trillion
Both at all-time highs.
This marks the 8th straight month of $7+ trillion yearly increases — longest run since 2021. Before COVID, the average annual increase was around $3 trillion. We're now running at more than double that pace.
The money printer isn't just on. It's been running in overdrive for four years straight. When central banks flood the system with this much liquidity, it doesn't just sit idle — it finds its way into assets. Stocks, real estate, commodities, crypto.
This is the backdrop. Liquidity drives markets more than most people want to admit. You can debate valuations, earnings, technicals all day. But when this much fresh money enters the system, it has to go somewhere.
Keep this chart in mind next time someone asks why everything keeps going up.