M5 is my measure of money that includes M2, plus debt held by the public, less Treasuries owned by the Fed. Here is the current measure:
As of August 31, 2021
M2 (as of 7/1/21): 20,534.6
Public Debt (as of 8/30/21): 22,246.9
Fed Held (as of 8/25/21): -5,346.3
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Total 37,435.2
This is lower than last month, which was at 37,552.9.
I think there is too much liquidity in the system and the Fed should sell off some of its Treasury bond holdings. Anyways this number doesn't look bad. But it should soar in the new fiscal year beginning on October 1, when $5 trillion of new stimulus bills will flood the system. That is, if the government doesn't default on its existing debt.
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