More Problems, More Money

Published by Christopher Schwarz on

Over the last 3 months, the U.S. Government has provided a huge stimulus to the economy – perhaps more than the economy lost from shutting down. On top of that, people had no where to spend money. The result? An enormous rise in deposits at banks.

Year-over-Year Change in Deposits, in Billions (Fed H.8)

Deposits are up almost **3** trillion dollars over the last year. This is currently how a lot of people feel:

The question is what happens with all of this money. If everyone tries to spend it at once, there could be a massive inflation issue.