> 35% of all USD in existence have been printed in the last 10 months
Yes, currency in circulation increased, which is exactly what you expect when deposit rates are basically zero.
Now please explain why withdrawing some money from your bank account, which converts a deposit account into currency and causes "printing" of money (this is the only thing that can cause printing of money) is going to cause inflation? Seriously, I'd like to know. By this argument, if the US imposed a national teller fee that discouraged cash withdrawals, inflation should plummet, no? Why do central banks bother with interest rates when they have such a powerful inflation fighting mechanism at their disposal?
At some point people need to understand that different assets are fungible. There is no difference between cash in your pocket, a money market mutual fund, a deposit account, or a sweeps account. Shifts in these from one to another may cause swings in M1, and they are the only possible cause of "printing" USD, but they don't cause any inflation.
Yes, currency in circulation increased, which is exactly what you expect when deposit rates are basically zero.
Now please explain why withdrawing some money from your bank account, which converts a deposit account into currency and causes "printing" of money (this is the only thing that can cause printing of money) is going to cause inflation? Seriously, I'd like to know. By this argument, if the US imposed a national teller fee that discouraged cash withdrawals, inflation should plummet, no? Why do central banks bother with interest rates when they have such a powerful inflation fighting mechanism at their disposal?
At some point people need to understand that different assets are fungible. There is no difference between cash in your pocket, a money market mutual fund, a deposit account, or a sweeps account. Shifts in these from one to another may cause swings in M1, and they are the only possible cause of "printing" USD, but they don't cause any inflation.