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Monetary Base Nearly Doubles

Bonnie Kristian
Mar 18, 2009 at 8:20 PM
By Bonnie Kristian

From the Economic Way of Thinking blog:

A number of bloggers have reported recently that the Fed has nearly doubled the monetary base from roughly $826,000 million in March 2008 to $1,534,000 as of March 12, 2009.  (See the data here.)  A desperate attempt to increase the nation's money supply which will lead to price inflation (and mis-direction of capital goods once again) in the future.

Although frequently used to describe rising prices as is mentioned here, in fact inflation is an increase in the money supply.  So in other words, the Fed has caused a ridiculous amount of inflation over the last year with its fiat money, yet Fed Chairman Bernanke nonetheless claims inflation is low.

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Fiat World Mathematical Model by Austrian blogger Michael Shedlock http://globaleconomicanalysis.blogspot.com/2009/02/fiat-world-mathematic... Every needs to stop assuming that printing a trillion dollars and give it to banks who won't lend is gonna cause inflation. That's logic in a non-fiat, non-fractional reserve banking world. But we live in a Fiat-Fed-FDIC-FRB world, and credit is king and unraveling due to financial gravitational forces that cannot be revoked by any monetary or fiscal policy.
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Submitted by Jack (not verified) on March 19, 2009.
"Although frequently used to describe rising prices as is mentioned here, in fact inflation is an increase in the money supply." ... money supply and credit. the difference is crucial. No, printing up a trillion dollars isn't gonna make a dent cause debt is deflating to a greater degree.
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Submitted by Jack (not verified) on March 19, 2009.