[aquila48]

So the fed both in terms of interest rates and buying assets is injecting tons of money into the economy, ie increasing the money supply, right?

So how does that stack up with your assertion that...

“the monetary system is in danger of slipping into deflation”?

[SaxxonWoods]

“So how does that stack up with your assertion that...

“the monetary system is in danger of slipping into deflation”?

Because the things you are talking about don’t relate to each other the way you think they do.

[politicket]

So the fed both in terms of interest rates and buying assets is injecting tons of money into the economy, ie increasing the money supply, right?

The Fed has not increased the FFR, and they have not recently done any QE (Quantitative Easing).

The Fed does not dictate the amount of the money supply. They set a rate that others then interpret to gauge how much a particular bank wants to loan, and at what rate. It also greatly affects the bond market.

So...the Fed has not been increasing the money supply by themselves lately. That's not to say that the money supply isn't increasing - just that the Fed is not the current cause.

Remember how fast the money supply was increasing from 1920 - 1929. Also from 2000 - 2007.

History can be a great guide, if one looks at all of the economic signals - especially those coming from other nations who are suppliers to us.