This morning I clicked the link for this graph from mine of the 12th
|Graph #1: RGDP Relative to Base Money, 1947-2015|
I zoomed in on the graph to see it:
|Graph #2: A Detail from the Recent End of Graph #1|
But uptick is a big deal. On Graph #1 there, it's all one big uptick from 1947 to 1966, and that was a golden age. So I'm interested in what might be happening now.
I made a new graph showing RGDP and Base Money separately, the growth rate for each, quarterly, and zoomed in even more to get a good look:
|Graph #3: Recent Growth Rates for RGDP (blue) and Base Money (red)|
So, the uptick at the right end of Graph #2, we got that uptick not because RGDP growth went up, but because Base Money growth went down.
The red line is below zero there at the end. Base money shrank.
(Is that even a word?)
I'm staring at that graph in disbelief. I see the red line running downhill, driven downhill by policy. It reminds me of something:
|Graph #4: Growth Rate of the Monetary Base|