Will Money Creation cause massive inflation?

Federal Reserve Chairman Jerome Powell is gambling money creation ๐Ÿ’ธ will create massive inflation for assets, but not price consumer expenditures! ๐Ÿ‘น

The Federal Reserve created 3.5T from 2008 to 2014.
+400% in 6 years
+66% per year

While in 2020 alone, the Federal Reserve created over 3T.
+73% in 1 year

Let pretend Federal Reserve creates 10T in 2020.
+243% in 1 year

๐Ÿ‘‡๐ŸฝYearly Changes of PCE chain index
1.8% 2004-2019
1.7% 2008-2014
1.3% 2014-2019

Massive inflation did not occur in PCE and stayed below 2%, due to deflationary forces like cheap foreign labor and technology.

While asset prices significantly appreciated much higher than 2%.

If the United States brings back manufacturing or trade war intensifies with China, expect higher inflation of PCE to occur!

The Federal Reserve targets a 2% PCE inflation but ignores asset inflation. ๐Ÿค”

You must own assets to be wealthy.


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