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An artificial increase in the money supply impoverishes the holders of that money, 
regardless of whether it causes a visible increase in prices. 
regardless of whether it causes a visible increase in prices.
In classical economics, the definition of inflation was 'an increase in the money supply', but Keynesians changed the definition to 'an increase in prices'. This opens the door to all kinds of mischief.
Perhaps the upward pressure on prices from an increase in the money supply is being offset by downward pressure on prices from productivity gains, or global competition.
In this case, consumers are not allowed to benefit from the prices that would have fallen if the money supply had not been increased. @PhilippBagus explains this very well on @stephanlivera's Podcast episode 153.
Central banks increase the base money supply most rapidly at the very time commercial banks are tightening credit. This hides the immediate impact of the money supply increase, but sets the stage for an even larger credit boom, and subsequent crash, in the future.
Because the USD is global reserve currency, the US can âexportâ its inflation. A large part of of the cost is borne by all the overseas holders of USD. Because this cost is spread across many people in many countries, it is hard to perceive, but still very real.
The US treasury market is like a gigantic sponge that has soaked up *$15 trillion* of money supply. This money does not influence consumer prices. But this is like a dam waiting to burst. When the treasury market breaks, as it inevitably will, that money will come flooding out.
40 straight years of plummeting bond yields is the modern version of hyperinflation. The cost of the inflation has been postponed, and will be unleashed on our future selves, or perhaps on a future generation. @PrestonPysh explains this well on @nlw's podcast.
The mark of a true economist is the ability to deduce the second order effects of a policy that are not immediately seen. Frederic Bastiat wrote about this more than 100 years ago. Our understanding of economics is going backwards.
MMT is a scam.
