Yeah, except a huge portion of that increase isn't even circulating. The only increase in circulating supply has occurred at the behest of the Trump and Biden a

Yeah, except a huge portion of that increase isn't even circulating. The only increase in circulating supply has occurred at the behest of the Trump and Biden administrations, via fiscal stimulus. As evidence for this, reverse repo operations (in which banks who have way too much excess reserves buy the Fed's assets overnight) are running close to a trillion dollars(1). Meanwhile, credit offered by banks appears to actually be shrinking. So Wells Fargo, for example, is over here sitting on more cash than it knows what to do with, and killing ~4% NIM consumer LOC facilities(2) while buying 0.1% NIM in overnight operations. I don't know if banks think default risk is rising above 3.9%, or if demand for credit is low. But something fucky is definitely going on since February. 1. https://fred.stlouisfed.org/series/RRPONTSYD https://fred.stlouisfed.org/series/RRPONTSYD 2. https://www.cnbc.com/2021/07/08/wells-fargo-is-shutting-down-all-personal-line-of-credit-accounts-.html https://www.cnbc.com/2021/07/08/wells-fargo-is-shutting-down...