• How All That Extra Stimulus Money Could Lead to Price Inflation

    How All That Extra Stimulus Money Could Lead to Price Inflation

    In an effort to “fight” the consequences of the politically orchestrated “lockdown,” the Fed pumps vast amounts of money into the economy. It injects base money into the banking system. It also monetizes outstanding debt and finances the US administration’s deficit spending policy by issuing new money. This not only increases “excess reserves” in the …