đš The Great Liquidity Flood: 2020â2022
When the world shut down in 2020, the Fed flipped the switch on the largest liquidity experiment in modern history.
In just two years, the U.S. money supply (M2) jumped from $15.4 trillion â $21.6 trillion â roughly $6 trillion in new liquidity created through asset purchases, stimulus, and credit expansion.
The goal? Prevent collapse.
The cost? Inflation, distorted valuations, and the biggest debt overhang in U.S. history.
What used to be a âlender of last resortâ became a market backstop â from Wall Street to Main Street.
Capitalismâs correction cycle was replaced by constant intervention.
Now weâre feeling the lag effects: âą Sticky inflation
âą Rising long-term yields
âą Slower real growth
âą Record federal debt servicing costs
It wasnât free money â it was borrowed time.
If liquidity created prosperity, every central bank would print its way to wealth.
Instead, it just front-loaded returns and delayed the reckoning.
2020â2022 wasnât a bailout. It was a reset â fueled by liquidity, paid in inflation.
#CPIWatch #FedPolicy #DebtCycle #Bitcoin #InflationTrade
