Money creation keeps outpacing real economic growth across the G7, a fresh set of figures shows. According to The Kobeissi Letter, Canada's M2 money supply (a measure of cash, checking deposits and savings-type accounts) has grown 368% since January 2004, the largest increase among G7 economies, while the Canadian economy expanded just 159% in nominal terms over the same period. The US shows a similar gap, with M2 up 279% against 171% nominal GDP growth. France's M2 has surged 258% and the eurozone's 211%, both far outpacing nominal growth of 84% and 102% respectively. Japan is the outlier in the other direction, with M2 up only 90% since 2004, but its economy grew just 25% over that span, the slowest pace in the G7. Kobeissi frames this as a widening gap between how fast money is being created and how fast economies are actually growing.
Why it matters · Money supply growing far faster than the economy means currency is being diluted, building long-run pressure toward inflation and rising asset prices.
Worth asking · Does money supply growing faster than the economy eventually show up as asset-price inflation?