When M2 increases by 40 percent in Two Years...

 I just thought that I would check on the M2 money supply over at the St. Louis Fed's FRED database. Here's what I found.

On March 2, 2020 M2 was $15,493 billion. On March 8, 2021, M2 was $19,727 billion. On February 28, 2022, M2 was $21,712.

So in the year from the beginning of COVID to the start of the Biden administration M2 went up by 27 percent. In Year One of Biden M2 went up 9 percent.

So, President Biden and Nancy Pelosi (D-CA) and Chuck Schumer (D-NY) and all the ships at sea. What do you think will happen to prices in the wake of all that?

Just to give a little perspective, in March 2010, M2 was $8,599 billion. So M2 expanded by about 6 percent a year during the 2010s.

A decade of M2 increasing by about 6 percent a year gave us 2 percent inflation. What do you think that a year of 27 percent increase in M2 followed by a year of 9 percent increase in M2 will do to inflation?

That's 40 percent increase in money supply in two years.

I'd say we are looking at a couple of years of double-digit inflation.

Oh well. No big deal. Back to normal in a couple of years, no doubt.

Or not.