I'm surprised that everyone is saying this means printing money, oh no the dollar will crash and so on, do you guys actually
know what the M2 supply is?M2 is not just coins and banknotes, it's also money in the bank, money that has an interest rate, how do you think the money supply would have kept going down forever when the economy grows and you want to disinvest money into deposits?
Everyone goes bananas on those and then five years later they still wait for the crash and recession that is not there!
Regardless, however, of the temporary expansion and contraction of the money supply, if we take a couple of steps back, we will see that the supply is actually growing continuously.[1]
This is also a bit misleading fact because it ignores economic growth.
Take China for example:
A better comparison would be looking at relation to the GDP
https://fred.stlouisfed.org/graph/?g=eTtEAnd suddenly things stop being so dramatic, right?