What are the consequences of the Federal Reserve's policy to expand the M1 money supply? The following chart from the St. Louis Federal Reserve shows how fast the money supply has exploded under the Obama administration: Art Laffer wrote an article for the Wall Street Journal on June 11th, 2009 which outlined some of the consequences of the Federal Reserve’s policy to increase the money supply. Two years later and we see that his analysis was correct for his short time frame predictions: The expansion of money, given an increase in the monetary base, is inevitable, and will ultimately result...