In the last 25 years, how much currency has been printed in various countries? Take a look at this statistical chart, and it will ensure you have a new understanding of 'money becoming less valuable'! Currently, the world is frantically operating printing presses, and the cash in hand is secretly shrinking every day. Today, let's uncover who is the most aggressive in printing money and how ordinary people can protect their wallets.
First, let's look at the global scene: As of September this year, the global broad money supply (M2) has soared to a historic high of $142 trillion, an increase of 6.7% year-on-year! Even more astonishing, over the past 20 years, global M2 has increased at an astonishing rate of 7% per year — equivalent to the world's money doubling every 10 years or more. When money is abundant, it depreciates, so it's no wonder that gold prices are skyrocketing, and cryptocurrencies have seen outrageous increases, with an annual growth rate of 200% since its inception in 2009. The logic here is quite simple: the more fiat currency is issued, the more attractive scarce assets like gold and cryptocurrencies become.
Looking at the “money printing power” of various countries, the real main players are just a few, with China and the United States being the “big brothers”:
China: The number one player in global liquidity
Our broad money M2 has directly reached $47 trillion, accounting for 33% of the world—this amount is equal to the total of the United States, European Union, and Japan, so saying we are the “king of money printing” is not an exaggeration. This is done to prevent deflation and stabilize the economy, alleviating debt pressure through moderate cash distribution. But this also means that the RMB assets we hold may be diluted. However, although we print the most money, our GDP has not yet surpassed that of the United States, which means that while the scale of money has increased, our wealth creation ability is still catching up.
United States: About to start a new round of “water release frenzy”
The U.S. M2 remains at $22.2 trillion, accounting for 16% of the global total. Here’s the key point: The Federal Reserve has officially announced that it will end balance sheet reduction on December 1, which is equivalent to restarting the money printing machine! A new round of quantitative easing is on the way, and at that time, whether it’s U.S. stocks or cryptocurrencies, they will likely rise driven by liquidity.
European Union: The following “water release team”
The European Union ranks second with a 16% share, tied with the United States. Although the eurozone's monetary growth rate was only 2.8% in September, as one of the three major economies in the world, its money supply still supports half of global liquidity, mainly to stabilize the pace of economic recovery within the region.
In total, China, the United States, and Europe contributed nearly 65% of global liquidity. The global financial market is like a large water pool; these three are continuously adding water. As the water level rises, the prices of quality assets naturally surge. This is why people often say, “the more money is over-issued, the more valuable quality assets become”—money always needs a place to retain its value.
Finally, a practical tip for the brothers: In the face of the global wave of money release, don’t just foolishly hold cash! Don’t bet on a one-sided currency; diversifying assets for hedging is the way to go. Quickly switch from “cash is king” to “assets are king,” and make sure to allocate to hard currencies like gold and quality crypto assets that are resistant to inflation. When the wave of money truly spreads, thinking about allocation costs may multiply several times!
$BTC The upcoming trends will definitely have to follow the rhythm of global liquidity; let’s wait and see it reach new highs, and the key is not to miss the last train of asset allocation!
