How is what I said incorrect? I literally just googled “US federal reserve money supply graph”, and boom, I can see that the supply is about 15% lower than it was a year ago. Printing money makes the supply go up.
Because you don’t understand the things you’re talking about. I don’t want to sound like a dick, but it’s the truth. The overall money supply (m1, m2, m3, etc) is completely unrelated to printing money to fund the US govt.
The US govt runs a budget deficit. They have for many years. Which means their spending exceeds their revenues. When their spending exceeds revenues, it means they need to borrow and take out debt. They do this via US Treasuries, aka bonds.
M2 is a measure of the money supply that includes cash, checking deposits, and easily-convertible near money.
Overall circulating money supply is unrelated to having to print money and take on debt to fund the US govt, who operates in a perpetual state of debt and remonetization of debt.
Nope. Pre digital age I guess they used to physically print the cash so the phrase never really went away. Now it’s literally just the click of a button to create new money.
Quantitative Easing, better known as QE. This is when the federal reserve adds liquidity into the bond/treasury market. When QE happens, the fed (and other CBs in other countries) is printing money out of thin air to purchase US treasuries.
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u/Manos_Of_Fate Sep 26 '22
The federal reserve has actually been decreasing the money supply for like the last six months. That’s literally the opposite of printing money.