A link to a claim on reddit with no citation. Not saying it's wrong but it's certainly not a quality post.
Here's an alternative: https://www.cnbc.com/2020/08/05/the-ballooning-money-supply-...
The ballooning money supply may be the key to unlocking inflation in the U.S.
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Re: The ballooning money supply may be the key to unlocking inflation in the U.S.
#12People keep predicting inflation, but it remains stubbornly below the Fed's target rate of 2%, which is itself low compared to 20th century averages.
https://en.wikipedia.org/wiki/United_States_Consumer_Price_I...
Re: The ballooning money supply may be the key to unlocking inflation in the U.S.
#13When money supply expands faster than trade, you're going to have a bad time (in the future). We shall see how many USD it takes to buy goods from overseas.
In theory yes, but empirical evidence form the past decade has shown usd money supply quadruple while inflation has easily been at target every year.
Re: The ballooning money supply may be the key to unlocking inflation in the U.S.
#14Presumably https://www.federalreserve.gov/releases/h6/current/default.h... is the source for the claim posted. Shows a 12 month increase in M2 of 23.3 percent.
Re: The ballooning money supply may be the key to unlocking inflation in the U.S.
#15This helps middle class very short term, but would absolutely annihilate us medium to long term.
Doesn't that depend on thing like foreign trade volume and long term demand abroad for US Dollars? I wouldn't suggest that we keep printing money at this pace, but it seems like for the moment there's more than enough appetite for the Dollar and it's trading fairly strongly against other currencies.
Re: The ballooning money supply may be the key to unlocking inflation in the U.S.
#16This link should really point somewhere more substantive
Re: The ballooning money supply may be the key to unlocking inflation in the U.S.
#17What is the source? Mainly are we talking about cash or are we talking about money created by banks via credit?
Lots of YouTube channels and forums quote this but I can't see a mainstream news or government or tier 1 bank mention it...
Re: The ballooning money supply may be the key to unlocking inflation in the U.S.
#18People keep predicting inflation, but it remains stubbornly below the Fed's target rate of 2%, which is itself low compared to 20th century averages. https://en.wikipedia.org/wiki/United_States_Consumer_Price_I...
Yeah, maybe a gallon of milk did not increase that much.
But did you see prices for houses? for education? for cars? for entertainment? even high-end electronics?
Yes, for all those categories there are other (even more important) factors than inflation, but overall, we see a growth much larger than CPI
Re: The ballooning money supply may be the key to unlocking inflation in the U.S.
#19This link should really point somewhere more substantive
Well... it's Reddit.
Re: The ballooning money supply may be the key to unlocking inflation in the U.S.
#20People keep predicting inflation, but it remains stubbornly below the Fed's target rate of 2%, which is itself low compared to 20th century averages. https://en.wikipedia.org/wiki/United_States_Consumer_Price_I...
Why would this money increase inflation? It wasn't earmarked for consumer spending in the first place.