Why has this incredible boost in the money supply had no impact? Presumably because the “velocity” of money has remained low–people and banks are hoarding money, rather than spending, borrowing, and lending it. Assuming velocity rises again, however, we may be looking at an inflationary spiral like we’ve never seen before in this country.
Peter says it well, “We’ve Never Been Here Before.”
I keep joking to Bitter that I need to buy some gold sovereigns.Â Maybe it’s time to stop joking.