by David Kranzler
Investment Research Dynamics
“April 2021 money supply and monetary base growth continued to explode” – John Williams, Shadowstats.com
Williams is referencing the “base” monetary aggregates which are compiled monthly. The Fed’s balance sheet grows by the week, hitting $7.935 trillion as of June 3rd. It’s doubled plus another 13% since September 2019, when “QE” was restarted.
The rate of growth in the money supply is unprecedented in history. The price inflation effect of the money printing showed up first in the financial markets: stocks, bonds and housing prices (yes, because most homes are purchased using a high loan-to-value mortgage, homes can be considered financial assets). Now the devaluation of the dollar is showing up – uncontrollably – as price inflation across goods and services.