Gold to Money Stock

Money Supply (M2 Money Stock) is steadily – and recently strongly – increasing. The strong increase and the amount reaching the same level as GDP is one major pre-condition for a higher inflation and potentially even hyperinflation
We have used the Federal Reserve Bank of St. Louis’ adjusted monetary base as it combines different Federal Reserve actions that affect the supply base, including open market operations, discount window lending and unsterilized foreign exchange market intervention etc. and provides a long-term data set that shows the historic range of the ratio with gold.