[quote=jpinpb]Rich – the chart you linked is M2 – Money stock. That’s what’s actually in circulation?! Then why are we not seeing inflation right now?[/quote]
I think we are seeing massive inflation right now.
If the Fed/govt hadn’t printed trillions of dollars into existence and backed/bought trillions of dollars worth of “toxic” securities, what would prices of stocks, bonds, residential and commercial RE, commodities, etc. look like right now? IMO, *that* is where prices would be without all the various forms of stimulus and intervention.
The fact that prices literally whipsawed back from 2009 lows (and they were probably heading lower from there) and still remain at these high levels, even though our “real” economy is showing record weakness, is evidence of massive inflation, IMHO.
When prices are higher than they should be, due to massive amounts of stimulus and intervention (even if they are lower than during the peak of the largest credit bubble in the world’s history), that is inflation.
