I think we’ve been insulated from a lot of inflationary pressure as many institutions that have received dollars from the government trough have not yet done anything with them so they’re not really in circulation.
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Agreed. But realize that a lot of these institutions can’t do anything with these dollars. They’ve got capital and liquidity issues that aren’t getting better. Furthermore, they can’t find places to loan out the money where they have much comfort.
So, yes, these dollars will one day get into circulation… but that could be a ways down the road given the fragility of their balance sheets.
