Courtesy of Pam Martens
Chart Displayed by Senator Cynthia Lummis at Senate Banking Committee Hearing
By Pam Martens and Russ Martens
Senator Cynthia Lummis (R-WY)
Senator Cynthia Lummis (R-WY) is the first woman from Wyoming to ever serve as a United States Senator and she has a coveted spot on the Senate Banking Committee. Lummis holds three degrees from the University of Wyoming — in Animal Science, Biology and Law. Today, during a Senate Banking Committee hearing with Fed Chair Jerome Powell, Lummis proved she knows a thing or two about economics and the money supply.
Lummis came armed with the above oversized chart for her colleagues and Powell to ponder. Lummis told Powell the following:
“M2 data shows that deposits and close substitutes held by households have generally averaged 51 percent of GDP from 1952 to 2021. But then data from the end of Quarter 1 of 2021 shows that households are sitting on deposits and close substitutes of approximately 79 percent of GDP today. So that’s roughly 28 percent [increase] or trillions of dollars above the historic average.
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