No it's still accurate. The idea of classical economics here is that when the money supply in circulation increases and the total goods for sale stay the same,

No it's still accurate. The idea of classical economics here is that when the money supply in circulation increases and the total goods for sale stay the same, prices increase as well. What we're seeing is that because the USD is the world's exchange currency, it is a good way for foreigners to store wealth. So all these dollars end up locked away overseas which means that the money supply in circulation doesn't expand. Of course, the US can only play this game so long before we devalue our currency enough that it's worth it for the world to switch to another currency. And when that happens, the USD will no longer be a good store of value, which means all those dollars will come flooding back. And we'll experience decades of inflation in a very short period of time, with disastrous consequences.