Understanding M0, M2, and M3: Why Bitcoin Isn’t Comparable

Show Notes

In this clip, Matthew breaks down the nuances of the U.S. money supply, clarifying the difference between M0, M2, and M3. He explains why Bitcoin cannot be accurately compared to traditional monetary aggregates. From retail deposits to institutional repurchase agreements, and from bank reserves to M3 leverage, this clip offers a clear perspective on how central bank money pyramids through the financial system. Learn how the Great Financial Crisis and policies by the Fed, including Ben Bernanke’s interest on reserves, reshaped the banking landscape—and why the commonly cited “10 to 1” ratio isn’t what it used to be. A Clip From Porkopolis Economics Episode 239 Chapters: 00:00:00 - Understanding Money Supply: M2 vs M3 00:01:03 - Understanding Bank Reserves and M0 00:01:27 - Bank Reserves and Interest Rates Explained 00:03:00 - Understanding Money Supply and Banking 00:04:24 - Understanding M0 and M3 Money Show Sponsor: Debifi - https://debifi.com/ Donations to Porkopolis Economics via BTCPay are appreciated: https://donate.basemoney.world/i/9Y1RzT4cp3y8VEYhjEKkwi Host: Matthew Mezinskis https://porkopolis.io Twitter: https://x.com/porkopolis_econ Show content is not investment or financial advice in any way. #bitcoin #bankreserve #money