The massive money and credit creation is sitting in the banking system like dry tinder just waiting for a spark to set it ablaze. How quickly it happens is anyone’s guess, but once it does we are likely to be enveloped in a worldwide inflation unlike anything before ever witnessed.
Doug Noland presents some data on what has been happening (my embolding):
Federal Reserve Credit declined $0.7bn to $2.917 TN. Fed Credit was up $412bn from a year ago, or 16.4%. Elsewhere, Fed Foreign Holdings of Treasury, Agency Debt this past week (ended 2/22) jumped $14.4bn to $3.462 TN (3-wk gain of $52bn). “Custody holdings” were up $73.3bn year-over-year, or 2.2%.
Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $943bn y-o-y, or 10.1% to