[arcticbull]

What you haven't provided any explanation of is why you think there's a small group of people that suddenly have 25% more money scot free. Read rojeee's explanation above. The burden of proof is on you. That's simply not how it works.

[roenxi]

Inflation is what, 2%? And the velocity of money is around 1. It is hardly speculation to say that the typical doesn't-save consumer hasn't got 25% more money in their account. Someone does.

If you're talking about the "M1 can _only_ be held..." comment, rojeee is wrong. M1 includes physical currency [0], so entities other than commercial banks can hold it. If I substitute M2 for M1 the point is still indecipherable. Eg - "the increase in M1 has little to no impact on the aggregate money supply" - as far as I'm concerned the M2 is the monetary supply so that makes no sense.

> The burden of proof is on you.

M2 went up 25%, Pidgeonhole principle: someone's account is up 25%. Inflation went up 2%: it isn't ordinary consumers. QED.

[0] https://fredblog.stlouisfed.org/2021/01/whats-behind-the-rec...