3 ms·
> 22% of all US dollars that exist were created in 2020. Expect some serious inflation to happen in the next few years. I think you're looking at M3? Yes, cur
by iso1210 6y ago
> 22% of all US dollars that exist were created in 2020. Expect some serious inflation to happen in the next few years.
I think you're looking at M3?
Yes, currently 2.94T, up from 2.3T at the start of the year, so 22% of current money would be about 700B out of 3,000B.
From June 2007 to June 2008 went from 1.5T to 2.3T, so it was valid to say in June 2008 that "34% of all US dollars that exist were created in the last year"
On top of that M3 carried expanding:
From March 2007 to March 2009 went from 1.4 to 2.6T, where you could say "half of all US dollars that exist were created in the last 2 years"
Inflation from 1996 to 2006 was an average 2.54%
Inflation from 2006 to 2016 was an average 1.76%
So for the response to the pandemic, measured in M3, to have the same affect as the M3 from 2008, the US would have to create another $1.6T by January 2022. Then you could say "half of all US dollars that exist were created in the last 2 years"
So far the increase is 74B a month, or 1.8T over 2 years.