The Federal Reserve’s balance sheet is a proxy for the money supply. The only way that the Fed can put assets on its balance sheet is to purchase them by using money or electronic credits. Each purchase of assets adds money into the banking system. Below is a history of the assets of the Federal Reserve.
This is perhaps the scariest chart I have seen in a long time. The monetary expansion which began in the late 1960s produced the inflation rates of about 15% around 1980 and mortgage rates of close to 20%. That expansion pales in comparison to recent Fed expansions. Charts like this are what make people believe that high inflation, perhaps hyperinflation, will destroy the economy.
The chart is from Gresham’s Law which contains a number of related charts and a discussion of the implications of these charts and the actions behind them.
O_O