Picture worth 14 trillion words

I linked this graph in previous item about central banks opening the dam in 2020 and now starting to shut the dam.

The graph is so extremely extremely extremely extremely extreme that it deserves to be seen on its own. This is the M1 supply of money, basically all the dollars that have been “printed” in the ledgers of the government and the banks. I set the graph for 1970 to present. Starting roughly when Nixon removed the gold standard, and including the first hint of reversal.

In 2009 they started QE, a gradual doubling over 10 years.

In 2020 they quintupled the supply ALL AT ONCE. Now they’ve stopped “printing” and they’re starting to reabsorb some of the excess.

Where did the excess go? About 1 trillion of the added 16 went directly to peasants in extra unemployment checks and those grotesque ghoulish $2000 blood money checks. The rest went into the pockets of Bezos and Fink, and also bribed lower-level Repooflicans into assisting the holocaust.

= = = = =

Later: The left side of the graph is also interesting. I narrowed down the dates to only the ’70s, in case the huge 2020 bump was making the Y-axis invisible in the earlier years.

Conclusion: Nixon’s inflation was NOT caused by printing more money, so his de-golding wasn’t the important factor. Nixon’s inflation was caused by the artificial shortage of oil, created for political and military reasons.

This removes one bothersome exception to a “rule” I’ve tried to formulate: Gold vs fiat isn’t the important variable. Goldbugs, the old Populist silverbugs, and the modern bitcoinbugs are focusing on the wrong end.

The important variable is political decisions. Bubbles and inflations happen when politicians encourage bubbles and inflations.  Politicians can dilute money under all types of standards, and politicians can create shortages of materials under all types of standards.   Bubbles stop when politicians forbid bubbles, as FDR did. Until now I bought the standard argument that Nixon started up inflation and globalism by breaking gold.

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