The Federal Reserve system printed more than 35% of the dollars ever printed- in the year 2020 alone. A graphic from the Board of Governors of the Federal Reserve reveals the severe increase in printing, with dollar printed dramatically exceeding the number produced in previous years.
The increase in printing and spending was spurred by the coronavirus, with the federal government moving to deliver two financial stimulus packages in the year which relieved the American taxpayer. Leaders of both political parties agreed the stimulus spending was necessary, with the virus spurring an unprecedented recession. However, the inflationary effects on the dollar from the print & spend approach are unavoidable.
The volume of US dollars circulating throughout the economy went from just over $15 trillion to over $19 trillion in one year alone.
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This is clearly without precedent in American history, and the inflationary effects of the mass printing and spending will make themselves known. While the dollar will ultimately deflate, it’s hard to imagine if it loses its dominance over other centralized currencies utilized by other world governments, with the economic policies utilized by the federal government nearly universal.
The federal government may be making the ultimate case for bitcoin and decentralized currency, with other world governments also rushing to print as much inflating currency as possible. With the dollar an ever-volatile indicator of wealth, the uncertainty surrounding cryptocurrency and precious metals may eventually pale in comparison.