> The $1.9 trillion in stimulus just passed in the US is a drop in the bucket compared to the Federal Reserve’s unprecedented $7 trillion balance sheet: Not a

> The $1.9 trillion in stimulus just passed in the US is a drop in the bucket compared to the Federal Reserve’s unprecedented $7 trillion balance sheet: Not at all. The Fed's balance sheet expansion is widely believed to be ultimately temporary, to be wound down over time once conditions normalize. Moreover, its expansion has all taken the form of collateralized loans, which is why the linked graph is of the asset side of a balance sheet. Fiscal policy, however, does not create any such assets owned by the Treasury. The required deficit spending is fundamentally unsecured, uncollateralized credit, even though the US federal government has an excellent credit rating. > This money is finding its way into everything except ironically the items that are tracked by CPI. You could also look at the GDP price deflator (https://fred.stlouisfed.org/series/A191RI1Q225SBEA https://fred.stlouisfed.org/series/A191RI1Q225SBEA), which doesn't have a basket-of-goods problem, and see similar trends. > When a crypto currency created as a joke reaches a market cap > $7.5 billion you may have an inflationary bubble on your hands. No, it's a speculative bubble. Very different.