You cannot discuss thee money supply without discussing the money velocity.
The money velocity has tanked: http://research.stlouisfed.org/fred2/series/M1V http://research.stlouisfed.org/fred2/series/M2V
The money velocity has tanked: http://research.stlouisfed.org/fred2/series/M1V http://research.stlouisfed.org/fred2/series/M2V
But what is stopping all the money that has been printed from at one point entering the economy and causing inflation? From the previous chart, I read that the amount of money in the US economy has more than quadrupled. Is this a correct interpretation?
http://dailybail.com/home/chart-of-the-day-feds-balance-shee...
Some of the money seeps into the economy and may be inflating stocks and other assets. For example, banks are given loans at zero interest[2] and they can use that money for whatever, e.g. proprietary trading, bonds/treasuries, etc.
Perhaps some of that money finds its way into investment funds and eventually tech start-ups?
[1] http://www.ritholtz.com/blog/2012/02/fasb-sells-out-unsurpri...
[2] http://www.sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e7... http://www.bloomberg.com/news/2011-12-23/fed-s-once-secret-d...