RE:RE:RE:RE:RE:RE:RE:Analysts The increase in money supply will eventually be offset by inflation. Certainly more dollars are floating around this last decade but each day the power of money declines with inflation.
Of course, rapid inflation creates it's own set of problems but gradually (or transitory as the FED likes to claim) it will smooth out. The worst mistake the FED could have done in 2008-09 and 2020 would have been no QE. Then we'd be all worse off with high unemployment and a destructive depression.
In the end, to fight inflaton stay invested. Everyone sitting in cash and low rate investment instruments will fall behind the wealth curve.
Guillaume wrote: It s not because of covid. We are in this situation since 2009. They flooded the market with qe and all is gone into bubbles and not real economy. That s why they have lost the correlation between money printing and inflation. Even some economists had theories less than 1 month ago that it will be forever. That now money is free for investors and states and that the old rules dont apply annymore. The covid have just accelerated everything. More printing, more depth, and a grow surge worldwide at the end creating temporary inflation and finaly systemic inflation. Something supposed to be gone in 2008... So now we are going back to normal. With a +6 inflation in sight, salary increase, not supportable depth for some states... The landing will be hard for markets and states. That s bad it happen before the q4 :(