MMT

The qualitative easing which took place during the 2008 mortgage crises added $4.5 trillion dollars to the money supply. Since then another $5.5 trillion has been added bringing the total increase since 2008 to $10 trillion. I first studied economics in college in 1955 and the rule was that inflation was caused by too many dollars chasing too few goods. In spite of the more than doubling of the money supply in 12 years, inflation has stayed under 2%. This opens the door to the concept of modern monetary theory which says when a country has its own currency, as the US does, it can cover its debts just by printing more money. They do not have to be concerned about debt. This idea is gaining in credibility as we spend more and go deeper in debt without any negative consequences. If this keeps going we can spend the new $3trillion that Biden wants even if no new taxes are approved. It is like the old story of the money tree or Midas touch. This is all counter intuitive.