Graph from the St Louis Fed of the increase in the monetary base

[sailingaway]

http://research.stlouisfed.org/fred2/data/BASE_Max_630_378.png

h/t dp http://www.dailypaul.com/257880/wanna-see-what-ben-bernanke-has-done

[tangent4ronpaul]

And we haven't even seen QE3 yet... :rolleyes:

They are really trying to bankrupt this country :mad:

-t

[DamianTV]

When people see this, too many dont quite get that this is Inflation, and Inflation is a Hidden Cumulative Tax on the Value of Currency. They make no association that they are getting paid LESS every time the Fed just counterfeits the currency into existence. They think the Value of Currency is constant. It isnt. Especially Fiat Currency because it isnt backed by anything. The only thing that keeps the value is to control the total quantity in existence. When the printing presses start, the value of the money goes down because the markets adjust for this increase in currency by an increase in the prices of goods and services.

At this rate, $1 will be worth about .28 cents in just a few years. That is a pay cut for everyone with dollars in their pockets.

[Bohner]

When people see this, too many dont quite get that this is Inflation, and Inflation is a Hidden Cumulative Tax on the Value of Currency. They make no association that they are getting paid LESS every time the Fed just counterfeits the currency into existence. They think the Value of Currency is constant. It isnt. Especially Fiat Currency because it isnt backed by anything. The only thing that keeps the value is to control the total quantity in existence. When the printing presses start, the value of the money goes down because the markets adjust for this increase in currency by an increase in the prices of goods and services.

At this rate, $1 will be worth about .28 cents in just a few years. That is a pay cut for everyone with dollars in their pockets.

Not exactly. Those dollars need to circulate around the economy in order for inflation to occur which hasn't been happening. Right now, those dollars are either stuck in the bond market or in the banks reserves for the most part. As long as the US is stuck in "lost decade" mode, inflation should be relatively moderate. Should the economy magically recover and people start spending again, and/or when the bond bubble bursts, that's when there's going to be a problem.

[Acala]

Not exactly. Those dollars need to circulate around the economy in order for inflation to occur which hasn't been happening. Right now, those dollars are either stuck in the bond market or in the banks reserves for the most part. As long as the US is stuck in "lost decade" mode, inflation should be relatively moderate. Should the economy magically recover and people start spending again, and/or when the bond bubble bursts, that's when there's going to be a problem.

Except that the government will have no choice but to borrow ever-increasing amounts of freshly-created money from the Fed, and THAT money WILL be spent into circulation. Also, all the dollars circulating overseas are going to come washing back into the USA.

[GeorgiaAvenger]

All of the data can be found here: http://research.stlouisfed.org/fred2/

You can also make your own graphs very easily.

From the Cleveland Fed, they will show you what is going on in regards to QE: http://www.clevelandfed.org/research/data/credit_easing/