FIAT Money Debasing Faster Than During COVID

The Accelerating Global Money Printing Crisis

We’re witnessing the greatest monetary expansion in human history, and most people don’t even realize it’s happening.

Take a look at that chart above. Those aren’t stock prices going up – those are the M2 money supply charts for the world’s four largest economies: the United States, China, the Eurozone, and Japan. Each line represents trillions upon trillions of new currency being created out of thin air, reducing the value of every dollar, euro, yuan, and yen in existence.

The title says it all: “FIAT Money Debasing Faster Than Covidians.” And if you think the pandemic-era money printing was extreme, you haven’t been paying attention to what’s happening right now in 2025.

The Current State of Global Money Printing

Let me hit you with some sobering numbers that should make every saver and investor pay attention:

U.S. M2 Money Supply: Now at a record $22.02 trillion (June 2025), up from $21.94 trillion just a month earlier
Eurozone M2: €15.71 trillion, growing at 2.76% year-over-year
Global Money Supply: Approximately $123 trillion worldwide
Global Public Debt: A staggering $102 trillion in 2024, up from $97 trillion in 2023

The U.S. M2 money supply rose to a record $22.02 trillion in June 2025, up from $21.94 trillion in May. Year-on-year (YoY) growth stands at 4.53%, reflecting an acceleration compared to last year’s 1.36% growth.

Understanding what 1 trillion dollars looks like:

100 Dollars $

1 Million Dollars $

1 Billion Dollars $

1 Trillion Dollars $

But here’s the shocker – this isn’t even capturing the full picture. Central banks have become masters at financial engineering, using tools beyond traditional money printing to inject money into the system.

Why The Fed’s Coming Rate Cuts Will Accelerate the Devaluation of your Money

The Federal Reserve is caught in a trap of its own making. The US Federal Reserve will assess rates at its September 2025 meeting, with an 87% chance of a 0.25% interest rate cut. Here’s why this matters for money printing:

Rate cuts enable more debt creation, which is basically equivalent to money printing.

When the Fed cuts rates:

Borrowing becomes cheaper for governments, corporations, and individuals
This incentivises more debt creation across the economy
New debt “creates” new money because banks can lend more money than they hold (fractional reserve banking system).
The cycle accelerates, devaluing the currency further

Ultimately, due to out of control government spending and debt they need to keep devaluing the currecy as it devalues the debt at the same time. Translation: They need to print more to keep the house of cards standing.

The Disturbing Truth About Money Velocity

Here’s where it gets really interesting – and concerning. Despite all this money printing, we’re not seeing the economic growth you’d expect. Why?

In 2021, money supply growth soared to 26.6%, and economic growth was only 5.7%. In 2022, money supply grew 5% and the economy barely lifted 1%.

This means we are creating massive amounts of new currency, but it’s not translating into productive economic activity. Instead, it’s:

Inflating asset prices
Enriching the those who hold assets which are typically the most wealthy
Destroying the purchasing power of savers
Creating what economists call “secular stagnation”

Bitcoin: The Canary in the Coal Mine

If you want to see the real impact of money printing, look no further than Bitcoin. When comparing Bitcoin’s price to the M2 growth rates of central banks like the FED, European Central Bank, Bank of Japan, and others, there is a clear correlation—Bitcoin tends to rise in tandem with the growth of the M2 supply.

The correlation is striking:

Long-term correlation between Bitcoin and global M2: approximately 0.60 to 0.94
Bitcoin often moves with a 70-107 day lag after M2 changes
Recent M2 expansion suggests Bitcoin could see significant upside

Bitcoin price tracks global M2 money supply with a 10-week lag, showing the direct impact of money printing on hard assets

This isn’t just speculation – it’s math. When you devalue fiat currencies at unprecedented rates, scarce assets with fixed supplies (like Bitcoin) become increasingly valuable in fiat terms. It’s not that Bitcoin is going up; it’s that your dollars are going down.

What This Means for Your Financial Future

Let me be blunt: If you’re holding cash, you’re losing. Every day. The silent tax of inflation is eating away at your purchasing power while central banks gaslight you about “price stability.”

Here’s what smart money is doing:

Moving into hard assets: Real estate, commodities, and yes, Bitcoin
Taking on strategic debt: Borrowing at fixed rates that will be inflated away
Avoiding cash positions: Keeping only what’s needed for immediate liquidity
Investing in productive assets: Businesses and investments that can raise prices with inflation

A Personal Note on InvestAnswers

I need to give a massive shout-out to James from InvestAnswers, whose Patreon community has fundamentally transformed my understanding of these macro dynamics. His daily analysis and insights have quite literally changed my financial future. If you’re serious about protecting and growing your wealth in this environment, I cannot recommend his content highly enough. Check it out at investanswers.io and subscribe to his Patreon.

The chart at the top of this article comes from his analysis, and it perfectly captures what we’re facing: a debasement of fiat currencies that’s accelerating beyond what even the COVID-era showed us.

The Uncomfortable Truth Nobody Wants to Admit

The reality shows that central banks are fuelling the fire of higher government debt and increasingly irresponsible fiscal policies, leading to a crowding-out of the private sector, higher taxes, persistent inflation and weak growth.

We’re not going back to “normal.” This is the new normal:

Perpetual money printing to sustain unsustainable debt levels
Asset price inflation masquerading as economic growth
Wealth inequality accelerating as those with assets benefit while wage earners suffer
Central banks trapped with no exit strategy

Action Steps for Protecting Your Wealth

Based on everything I’ve learned from following this closely, here’s what I suggest:

Educate yourself: Understand monetary policy and its impacts
Diversify out of fiat: Hold assets that can’t be printed
Consider Bitcoin: Even a small allocation could serve as portfolio insurance
Watch M2 growth: It’s your early warning system for what’s coming
Join communities: Find others who understand these dynamics (like InvestAnswers’ Patreon)

The Bottom Line

The chart doesn’t lie. Those exponential curves of M2 money supply growth aren’t sustainable, but they’re also not stopping. Central banks are trapped in a cycle where they must print more to sustain the system they’ve created.

The evidence is everywhere:

Gold breaking all-time highs at $3,500/oz
Silver exploding higher with targets of $50-88
Bitcoin correlating at 0.60-0.94 with global M2
Central banks themselves frantically buying gold
Everything rising together – stocks, metals, crypto, real estate

This isn’t normal market behavior. This is what currency debasement looks like in real-time.

As the title of that chart states, fiat money is debasing faster than “Covidians” – and if you thought 2020-2021 was bad, you haven’t seen anything yet. With the Fed about to embark on another rate-cutting cycle, we’re about to witness an acceleration in money creation that will make previous eras look tame by comparison.

The question isn’t whether fiat currencies will continue debasing – they will. The question isn’t whether gold, silver, and Bitcoin will continue rising in fiat terms – they will. The question is: What are you going to do about it?

What’s your strategy for protecting wealth in this environment? Drop your thoughts in the comments below, and don’t forget to subscribe for more analysis on the accelerating monetary crisis.

Follow me for more insights on monetary policy, Bitcoin, and navigating the changing financial landscape. And seriously, check out InvestAnswers – it might just change your financial future like it changed mine.