JEPI - Important Things To Know About Inflation Deflation And Economic 'Stimulus'

• There is no longer any correlation between bank reserves and the economy-wide money supply.
• In the US, the government-Fed combination can increase the money supply to almost any extent independently of the private banks. That is, monetary inflation does not rely on the expansion of credit via the private banking industry.
• The bond and currency markets eventually could impose practical limits on government borrowing and monetary inflation, but the government will be free to borrow and the Fed will be free to inflate as long as the bond and currency markets remain cooperative.
• Credit expansion can foster sustainable economic growth only when it involves the lending of real savings by private individuals or corporations.

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