Interesting podcast episode with Jeremy Siegel, Author of many books such as Stocks for the long run and Future for investors. (Aired in June 2020). Key takeaways
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After GFC in 2008- Fed had increased liquidity in the system but almost all of it was sitting with banks and financial institutions as excess liquidity or buffer capital to prevent systemic shocks to banking industry. This time, the liquidity increased by Fed has been actually disbursed to the people.
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As a result, M1 supply has increased by a large amount within a short span of time.
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All of this has led to conditions to believe that moderate inflation (in the US) is the most likely outcome (more than last few years).
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All of the debt borrowed by the Govt has to be paid back to the Fed. One way of doing that is simply - Inflation.