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A comment on Money Creation: 344% in the Last 12mo (Fed, M1, $). Parent comment

Re:Money Creation: 344% in the Last 12mo (Fed, M1, $) by mjfl on Wednesday February 24, 2021 @11:04AM (#26251371)
Considering the last post it was 70% and has apparently increased 5-fold since then, is this something to worry about?
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Re:Money Creation: 344% in the Last 12mo (Fed, M1, $) by epistasis on Wednesday February 24, 2021 @11:08AM (#26251433)
The fear is that excessive money creation would create inflation. However, there's no sign of that happening any time soon. Given all the other massive massive shocks to the system, it doesn't seem that 350% was too much.
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Re:Money Creation: 344% in the Last 12mo (Fed, M1, $) by cptskippy on Wednesday February 24, 2021 @11:10AM (#26251463)
> The fear is that excessive money creation would create inflation. However, there's no sign of that happening any time soon.

Wouldn't it be more accurate to say that it accelerates inflation. Inflation doesn't happen in fits and spurts, it's on going and has been happening well beyond my entire life.

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Re:Money Creation: 344% in the Last 12mo (Fed, M1, $) by joshstrange on Wednesday February 24, 2021 @11:17AM (#26251576)
> Wouldn't it be more accurate to say that it accelerates inflation. Inflation doesn't happen in fits and spurts, it's on going and has been happening well beyond my entire life.

Amen. I'm so tired of hearing "X might cause inflation" as if I haven't dealt with inflation for my entire life. Finding a non-bias source for "True Inflation" (aka, not the government who benefits from lower inflation because it directly impacts GDP) is hard but even using the government's numbers inflation is just shy of 100% (92.1%) since I was born, I will be 30 years old next month. That's ridiculous.

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Re:Money Creation: 344% in the Last 12mo (Fed, M1, $) by legym on Wednesday February 24, 2021 @11:13AM (#26251506)
From what I read, it sounded like a lot of the money was printed but fell into areas of the economy where it didnt get distributed. i.e large corporations
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Re:Money Creation: 344% in the Last 12mo (Fed, M1, $) by airhead969 on Wednesday February 24, 2021 @11:09AM (#26251450)
It seems to me that investing in REITs and TIPS, and taking out huge fixed-rate loans now (where possible) on necessary capital assets or borrowing cash to invest would be a wise investment strategy.
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Re:Money Creation: 344% in the Last 12mo (Fed, M1, $) by xwdv on Wednesday February 24, 2021 @11:31AM (#26251817)
Indeed, there has never been a better time to take out long term fixed-rate loans. In several years when inflation kicks in these loans will be much easier to pay off in future dollars.

REITs, maybe not so much. Stocks in growth companies are still a better bet right now.

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Re:Money Creation: 344% in the Last 12mo (Fed, M1, $) by SECProto on Wednesday February 24, 2021 @11:08AM (#26251428)
There's something funny going on with the title of the other post - the chart in the link shows it jumping from 4000 to 16000 in April/May of 2020. So there hasn't been a sudden increase in the last month.

But I don't know what any of this means, so I'll let more knowledgeable others weigh in

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Re:Money Creation: 344% in the Last 12mo (Fed, M1, $) by bondarchuk on Wednesday February 24, 2021 @11:09AM (#26251448)
The title was correct then, as you can see on archive.org:

http://web.archive.org/web/20210221170918/https://fred.stlou...

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Re:Money Creation: 344% in the Last 12mo (Fed, M1, $) by bondarchuk on Wednesday February 24, 2021 @11:07AM (#26251417)
The way M1 is calculated was changed retroactively although I don't know how exactly.
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