Funny money and fake land
Get rich quick, but you better act fast because supplies are [un]limited?
Random Walk wonders what happens when real money starts acting like funny money and funny money starts acting like real money.
Things we think
Money printer go brrrrrrr
Without looking, how much money do you think has been added to the overall money supply since 2008?
OK, now look:
If you guessed ~$14T in just 13 years, then you win my undying admiration. Put another way, we’ve nearly tripled the money supply since 2008. That is extraordinary.1
Anyways, I knew it was a lot, but I had no idea it was that much. It’s kind of amazing that inflation didn’t arrive sooner (although inflation, as measured by the price of equity, has arguably been here for a while).
If you zoom into the COVID-era, the increase of money is even more striking. Focusing only on the blue line and blue bars, the run-up between March and May 2020 was a real barnburner:
Keep reading with a 7-day free trial
Subscribe to Random Walk to keep reading this post and get 7 days of free access to the full post archives.