Money Supply and Inflation

The speaker talks about inflation and the money supply.  He provides statistics on the inflation in food, oil, and gas prices.  He mentions that increases in money supply lead increases in consumer price inflation, which should not be confused with asset price inflation.  Stocks and real estate prices can move in the opposite direction as consumer prices. 

He mentions that M3 growth, PPI, and CPI are all at levels which were seen in the 1970s.  The Fed has been printing money at an alarming rate and talks about the term auction facility an other lending facilities which were created to inject inflationary liquidity into the financial system.  This led to the eventual collapse in the monetary system.