Interesting charts. If I interpret correctly the FED's balance sheet indicates a massive increase in the money supply. At the 'start' of the credit crisis the FED held just over $800 Billion in assets (as seen on left of second chart). Current balance sheet shows $2,200 Billion in assets.
Doesn't this imply that the FED has printed and issued approximately $1.4 Trillion dollars recently? Granted, some of the assets are "held for the Treasury", but doesn't that also require issue of currency?
$1.4 Trillion (and growing) of new money in a $14 Trillion GDP economy can't be a good thing for long term inflation rates. Just a hunch.
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Interesting charts. If I interpret correctly the FED's balance sheet indicates a massive increase in the money supply. At the 'start' of the credit crisis the FED held just over $800 Billion in assets (as seen on left of second chart). Current balance sheet shows $2,200 Billion in assets.
Nov 14 09:00 am
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All Comments by Smarty_Pants »Bailouts Must Be Odious [View article]
Doesn't this imply that the FED has printed and issued approximately $1.4 Trillion dollars recently? Granted, some of the assets are "held for the Treasury", but doesn't that also require issue of currency?
$1.4 Trillion (and growing) of new money in a $14 Trillion GDP economy can't be a good thing for long term inflation rates. Just a hunch.