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Since you like FRED, here's the M2 money supply: https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL You can clearly see it rocket
by ajross 3y ago
Since you like FRED, here's the M2 money supply: https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL
You can clearly see it rocket upwards in 2020 due to the all the covid assistance (of which student loan forbearance was one item), and then begin to fall as the inflation stabilizes. The crest of the peak is six trillion dollars higher than the pre-pandemic starting point.
Sorry, but a mere $70B loan program just doesn't figure in that enormous signal. It doesn't. It's not doing what you think it's doing. I'm begging you to take off the political/ideological glasses and look at the real numbers here.
- somenameforme 3y agoA $70B loan program would have small, though measurable, effect on the economy. The issue is that those loans are not just being given to people who cannot repay them, resulting in a wide array of accumulating economic issues. So we're not looking at the impact of one small event, but an avalanche in slow motion now amounting a $1.8 trillion one. As one other aside, inflation doesn't drive monetary supply. It's the other way around.