Uncharted Waters, Part II

As we noted here, the Democratic Congress has embarked on a program of deficit spending that dwarfs anything we have seen since World War II. Monetary policy, too, has gone off the charts. This graph, from the Federal Reserve Bank of St. Louis, is stunning. It shows the nation’s “adjusted monetary base,” a measure of the money supply, from the end of the First World War to the present. Click to enlarge:


I doubt that anyone has any idea what the medium-term consequences of these extremes of fiscal and monetary policy will be, but the word “inflation” comes to mind.

Via Peter Robinson at The Corner.

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