Hahaha... tell me more about whether bank reserves really matter, or reverse repos count and how many EuroDollars there are in "circulation". Even people at the

Hahaha... tell me more about whether bank reserves really matter, or reverse repos count and how many EuroDollars there are in "circulation". Even people at the Fed know they don't know. The global credit machine and rehypothecated swaps are both the liquidity that keeps things going and the confounding variable that makes any estimate of "money supply" hilarious. How many years (and $T) of QE was there... and nothing. Then supply chain breakdown and poof! You might as well argue it was caused by "printing bitcoin". https://youtu.be/pn8nh0jUvbs https://youtu.be/pn8nh0jUvbs Talk to an honest graduate economist. These are all inputs to a complicated foul smelling brew. I'm not arguing that debt doesn't increase risk (eg doesn't matter), but (especially when repaid) it can easily be deflationary. I will argue that we had a perfect storm of deflationary pressures (high initial rates, rising productive demos, globalization) and now we have the opposite (zero rates, falling productive demos, deglobalization) and it was all started with a pandemic and broken supply chains. The best description I can give is that keeping businesses and consumers solvent/spending during the pandemic (note that was actual spending not QE) did ALLOW prices to rise rather than causing massive demand destruction (and likely depression-deflation). Inflation at least allows those decades of debts to be repaid and might lower risk.