![Every Mechanic [640x528 - 51KB]](https://pic8.co/sh/ypQcg1.jpg){kind=link}
source?
The money stock in January 2020 was $15,419.8 billion. Today it's $19,411.3 billion (fred.stlouisfed.org). That's a 26% increase. In other words, 26% of all dollars in existence came into existence in the last year. Unless you can say the GDP increased by 26% then that means 26% inflation is coming. You can't just increase the supply of money, hold GDP constant, and not have the value of money drop proportionally.
Thank you
GDP is a terrible measure of wealth produced.
I think it's highly unlikely that 25% of all wealth ever created was created in 2020 during the midst of widespread lockdowns. If those new dollars don't represent something, they can only diminish the value of dollars.
From late 2020: https://www.investmentwatchblog.com/35-of-all-us-dollars-ever-printed-were-printed-this-year/
The primary document that claim was made on: https://fred.stlouisfed.org/series/M1
Edit: Here is a more easily digestible source https://tradingeconomics.com/united-states/money-supply-m0
Thank you
(post is archived)