The money supply is not a simple zero sum game. A trillion dollars worth of newly created dollars has absolutely no effect on the value of the economy if it is sitting aimlessly in a vault somewhere. Contrary to the observations of many, creating money doesn't debase the value of the current money supply if the additional money is not employed. That is what is occuring today as the Federal Reserve's excess NSA remains at near record levels. The banks have plenty of money to loan. They just don't seem to have the right customers. Also, the velocity of money has slowed dramatically. This also has to be taken into account when examining the money supply numbers.

 

 

Here is a totally cool five-hundred dollar Federal Reserve note.