[peepeepoopoo3]

The M1 money supply increased by ~600% in the last five years, due to no-reserve banking and enormous money printing during covid, and people still act shocked when there's inflation. It's not because of wage growth, it's not because of "late stage capitalism", it's because of basic supply and demand. Nobody wants to address the elephant in the room that all of this is due to the botched response during covid.

https://fred.stlouisfed.org/series/M1SL

[machina_ex_deus]

I could've lived with the COVID printing if the Fed was more careful. There were inflation indications in early 2021 but the Fed used completely nonsense theory of "transitory inflation" which was obviously a lie to nearly every single economist but it somehow went on with it for a whole year.

After the biggest money supply growth in recent history the Fed somehow forgot basic economic concepts and its mandate for a full year. This is simply unbelievable. QE printing was still going on - in massive amounts - while inflation is showing up and the Fed is speaking nonsense about transitory inflation.

This game is rigged. The Fed is malicious, unpredictable and intentionally lying. It doesn't feel like the Fed is doing the best decision, it feels like the Fed is making intentionally unpredictable and even irrational decisions so that insiders, most likely big banks, could get to unravel their investment positions at the expense of the whole economy.

[rhaway84773]

Ok, basic supply and demand says the more supply you have of something the cheaper it should get.

And yet, despite the 600% increase in supply of dollars, the dollar is stronger than ever.

Whether the money supply is responsible for the inflation or not, this is not basic supply and demand. It’s the exact opposite of basic supply and demand.

[peepeepoopoo3]

The dollar is not "stronger than ever" if we're experiencing above-target inflation.

[okeuro49]

Covid money creation is part of it.

But in Europe inflation is also being driven by high energy prices due to the war in Ukraine.

[luckylion]

to a lesser degree though, it was > 6% already at the end of 2021, before the Russian invasion began.

[bremac]

I think you may have linked to the wrong graph — while that graph does have a spike on it, the spike happens when the index was broadened in May 2020 to include savings and money market accounts.

[slushh]

How much is M1 linked to the amount of money that is circulating? If that money is parked and not circulating, it cannot drive inflation.