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Printing Money Causing Bidenflation

Forget about “Putin’s price hike” and price gouging by evil corporations, our friend Stephen Moore has a great article out in his Unleash Prosperity Hotline demonstrating that

monetizing the government’s massive $4.6 trillion spending spree is what has caused Bidenflation.


Mr. Moore quotes one of his favorite financial analysts, Scott Grannis, who has been tracking the growth of the monetary base since the start of the pandemic.


The charts below show that almost all of the excess spending – some $4.6 trillion over the past 30 months – was monetized. In other words, we paid for the spending almost exclusively by the Fed printing money.



Mr. Grannis posted the chart above which shows the level of the M2 money supply as of the end of April. Mr. Grannis says that as growth slows relative to its long-term 6% trend, the "gap" is shrinking. But it may take at least a year or two before it disappears, so he said, “I repeat what I said earlier this month: ‘M2 still has a lot of inflation potential’.”



The chart immediately above shows the year over year growth rate of M2. As noted above, M2 has hardly grown at all for the past three months, and the budget deficit is very likely to continue shrinking, so the year over year rate is almost certain to approach zero.



This third chart compares the growth of M2 to the level of the federal budget deficit. This is powerful evidence that the deficit was effectively financed by "money printing."


Mr. Grannis concluded by saying:

I hasten to add that this is arguably the first time in modern history that this has happened. Did the Fed allow this to happen? How exactly did M2 increase so explosively? Under our fractional reserve banking system, only banks can create new, spendable money; the Fed can only create bank reserves, which in turn are necessary for banks to create new money. Is Powell now being lauded for mopping up the mess he created? We don't know the full story yet, but I'm sure it will emerge.

Is it any surprise that inflation hit a near 40-year high this year with all the pandemic spending in 2020 under Trump and then Biden’s $3 trillion of added spending?


Biden denies that his spending blitz led to inflation, but these pictures show fairly conclusively the relationship between massive debt spending and the tidal wave of higher prices, observed Stephen Moore.


  • Federal Reserve

  • printing money

  • inflation

  • money supply

  • supply chain

  • federal budget deficit

  • pandemic spending

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2 Comments


I heard Biden on the radio today praising the Fed and saying they are working with him to bring down inflation and improve the economy. Yikes! The Fed is one of the international monetary agencies that favors global governance. They are NOT our friends. They do not care about the people of America. Their only interest is in maintaining their own power and wealth. Like every lie Biden tells, I'm not impressed by this one.

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Charles Wilkins
Charles Wilkins
Jun 01, 2022

YOUR JOB IS TO NOT SQUANDER TAX PAYER DOLLARS YET YOU KEEP DOING IT REMEMBER THAT AT IMPEACHMENT TIME IF YOU CAN,It's a shame that people living in and around the DC area suffer from lack of comprehensive brain power,maybe it's the DC weed thats smoked?.To ignore all the proof of corruption by the Biden family, the Pelosi family, by the Clinton family. represents not only low IQ, but some type of need for professional help that caused that depended life long addiction to political corruption.

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