I downloaded the recent money supply data from the Federal Reserve.
To see the graph, click on "More..."
What's neat is that you can really see the spike around 9/11. The upward slopes in the graphs probably reflect the Fed's effort to keep the economy humming, but might it also be caused by people sitting on cash rather than having them in investments? Although the money supply has grown, there seems to be no signs of inflation. Unemployment is up, risks in the markets are now higher, oil prices are once again going up, and we might go to war. It's a good thing the money supply is moving in the right direction to at least counter some of the bad economic news.
So the next time someone asks you whether money grows on trees, tell them, "no, but it should grow when it needs to."
Notes:
The US Federal Reserve Board measures the money supply using the following measures.
M1
Money that can be spent immediately. Includes cash, checking accounts, and NOW accounts.
M2
M1 + assets invested for the short term. These assets include money- market accounts and money-market mutual funds.
M3
M2 + big deposits. Big deposits include institutional money-market funds and agreements among banks.