The U.S. M2 breaks through $23 trillion and continues to set new highs again, sparking controversy over “liquidity-driven bubbles.”

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OdailyPlanetDailyNewsThelatestdatafromtheFederalReserveshowsthattheseasonallyadjustedbroadmoneysupplyM2roseto$23.05trillioninMay,surpassingthe$23trillionmarkforthefirsttime,reachingarecordhigh.M2hasrisenforfiveconsecutivemonthssincethebeginningoftheyear,from$22.43trillioninJanuarytoacumulativeincreaseofabout$623billion,withamonth-on-monthincreaseofabout$247.8billion,indicatingcontinuedliquidityexpansion.SomeindustryinsidersbelievethatthisincreasemayreflecttheFed'sre-releaseofliquidityafterthetighteningcycle,sparkingdiscussionsabout"monetaryeasingreturning."However,mainstreameconomicviewspointoutthatthemoneysupplygenerallygrowsnaturallywiththesizeoftheeconomy,andpartofthecurrentincreasecanalsobeseenasacorrectiontothepreviouscontraction.Attheassetpricinglevel,themarketisgenerallypayingattentiontothepotentialimpactofliquidityonriskassets.Bitcoinandothercryptoassets,duetotheirlimitedsupply,areregardedbysomeinvestorsasatooltohedgeagainstcurrencydevaluation,andthenarrativeof"liquidity-drivenmarket"hasheatedupagain.Atthesametime,centralbanksaroundtheworldcontinuetoincreasetheirgoldholdingsasreserveassets,whichisalsoseenasanindirecthedgesignalagainstthelong-termstabilityofthefiatcurrencysystem.ThenextM2datawillbereleasedinlateJuly,andthemarketwillcontinuetoobservewhetherliquidityexpansioncontinues.(BitcoinNews)
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