Expansion of Monetary Base is Inflation!
When the Federal Reserve initiates Quantitative Easing, they are buying bonds and mortgages and are flooding the economy with cash, increasing the money supply. This is the pure definition of inflation. It takes time for this money to work through the system. Currently we see inflation in the terms of stocks, bonds, art works and collectibles and to some extent real-estate, at least the high end real estate. Eventually inflation will flow through to everyday living necessities.
This chart is extraordinary! Just take a moment to appreciate the 5X increase in the Fed's monetary base in the last five years. And now compare it to the prior 95 years. This is truly an experiment in monetary policy being conducted. Some experiments do go "Boom".
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