Print enough money and you can increase asset prices under any circumstance. The government has printed 40 cents for every dollar that existed in March.
All things equal, this would translate to 40% inflation as prices rise due to increased money supply. Of course, in reality inflation increased less than 1%…
… because economic activity slowed down so much and savings rates skyrocketed.
While it can seem like the lack of inflation gives the government a free pass to print, the printing is not without consequences. The money is flowing through to higher financial inflation and lowering the value of the dollar relative to other currencies and gold.
The combination of massive printing and historically low rates is producing bubble like behavior in many markets like crypto-currencies, much like in 2017. Of course in 2017, the Fed began to withdraw liquidity and crushed many of those asset bubbles.- READ MORE
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