The U.S. money supply is up a meager 1,2% YTD according to data released by the Federal Reserve today. Meanwhile, the y/y growth rate dropped below 3% again for the second time during the last three weeks and is now in the same territory as before the previous financial crisis hit.

The money supply impulse (%-point change in the y/y growth rate), which also dropped sharply before the 2000 and 2007 financial crisis, looks even worse.

The drop in the growth rate is not limited to the y/y basis - it's dropping across the board, short term as well as longer term.

Following nearly nine years with a y/y growth rate above 7%, the sizeable- and continuous drops in the growth rate this year will at some stage have serious repercussions for the U.S. economy and many others.

For why, see: