Will Money Creation cause massive inflation?

Federal Reserve Chairman Jerome Powell is gambling money creation 💸 will create massive inflation for assets, but not price consumer expenditures! 👹

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

👇🏽Yearly 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. 🤔

You must own assets to be wealthy.

#Bhalesha
#Economics
#Money

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