M2 Money Supply Explosion: Why Stocks, Gold, Bitcoin Are Soaring

"And the US dollar has had a record-breaking bad year in 2025."

"And then you throw interest rate cuts on top to further weaken the dollar. And that is not good. It's not a good setup."

"So, if they're going to continue this and expand the money supply like this, then there is a real possibility that the S&P 500 is just going to shoot to new record highs."

"So, what's going on is that the new monetary expansion cycle has already begun."

"So although the rate cuts have been paused monetary expansion is happening right now."

"So, the Federal Reserve has pivoted away from their aggressive monetary tightening. So as you know their quantitative tightening it went from $25 billion a month to now 5 billion a month. it's soon going to be zero and then they're going to switch it over to quantitative easing. It's just a matter of time."

"So we have the anticipated easing of SLR for US treasuries this summer."

"So this among other things have increased bank lending activity. So banks have increased their activity plus 2% in Q4 2024 and plus 2% in Q1 to 2025."

"So historically, if you have an expanding money supply that supports higher asset valuations because of the increased liquidity. So essentially, if you have more money out there and more money in the system, then of course you're going to get higher prices on almost everything."

"So, when it hits the 10% correction area or the 20% bare market range, you just look at the chart. I mean, those are great times to dollar cost average in or go in heavier than usual because what can you expect? You can expect a V-shaped recovery and more money printing."

"So, the Federal Reserve is trying to hold off on cutting interest rates, right? And if you think, you know, it's just the measly quarter point 0.25%, you know, who cares? So, I'll tell you the thing is that it is actually a big deal because a rapidly expanding money supply amplifies the rate cuts. And when you have an amplified rate cut, it generally causes explosive market rallies."

"So, I'll tell you this. Powell and the Federal Reserve, they've been trying to hold off on a rate cut for as long as possible because Powell knows he knows the consequences associated with accelerating M2 growth and the potential to cause massive consumer price inflation, or at least I hope he does."

"So, the market expectation according to the CME Fed Watch Tool is that the rate cuts going to happen. They're most likely going to happen at the September 17th meeting. So, right now there's a 76.3% chance that they're going to cut rates by then, by that meeting."