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> But it ignores the introduction of 12 trillion dollars into the system Where are you getting the $12 trillion figure from? It's several trillion dollars, it'
by adventured 5y ago
> But it ignores the introduction of 12 trillion dollars into the system
Where are you getting the $12 trillion figure from? It's several trillion dollars, it's nowhere close to $12 trillion.
- s1artibartfast 5y agoThe 12 trillion dollar sounds like it includes the federal reserve actions. Congress passed about 6 trillion in covid spending and there was another 1 trillion was spent through executive actions.
- bko 5y agoCorrect. Should have clarified. 5.92 trillion legislative and 6.84 trillion in Fed actions. That's what was allocated. Spent so far is 8.6 trillion. The fed actions include mostly asset purchases (e.g. 2.5 trillion in treasuries, 1.2 trillion in buying MBS, etc). This introduces money into the system and is what I believe is driving the strangness we've been seeing (financial assets up 30% from pre-pandemic levels, increase in inflation, supply chain shortages, etc). This is the best site I found to track the spending: https://www.covidmoneytracker.org/ https://www.covidmoneytracker.org/