The credit markets have to take the cheap money into the economy. And they’re doing just the opposite. The credit markets are constricting and the rates on treasuries are increasing. Unemployment is soaring. How anyone gets inflation out of this scenario is beyond me.
There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.
