The figure above is the assets on the Fed's balance sheet. We have discussed this before and we see it beginning to rise again. This as we have argued given the ratio of M2 to assets is dramatically lower than as before bodes poorly for controlled inflation.However if we look at the second element which is the reserve balances to other Fed banks as shown as follows we see where the growth has occurred. The Fed is buying treasuries at an ever escalating rate as well.
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