TYD - U.S. Monetary Inflation With And Without The Fed

Editor's note: Originally published at tsi-blog.com on June 25, 2019.

[This post is a slightly modified excerpt from a TSI commentary published about two weeks ago.]

The way that most new money was created over the past 10 years was different to how it was created during earlier cycles. During earlier cycles, almost all new money was loaned into existence by commercial banks, but in the final few months of 2008, the Fed stopped relying on the commercial banks and began its own money creation program (QE).

The difference is important because most of the

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