Comment: This doesn't tell the whole story.

(See in situ)

This doesn't tell the whole story.

Most of the money base depicted here is sitting on deposit at the Federal Reserve earning .25% per year for the banks that have it there. This is the TARP money used to buy worthless assets off insolvent banks. The FED is pretending the assets are worth something. The banks are pretending they are solvent. The promise is the FED will "unwind" this situation as the banks recover. It has been promising to do that since 2008. The money is not meant to be loaned and circulated, though I believe the banks could do that if they were not too afraid to. That is why we have not seen hyperinflation, yet. The only thing the commercial banks are lending to now is the government. What inflation we see in the price in gasoline and food is due to that.
This chart is in billions of dollars.

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