.... On November 4, 2010, Bernanke wrote:
".... Critics have, for example, worried that it [buying bad debt bailouts] will lead to excessive increases in the money supply and ultimately to significant increases in inflation.
"Our earlier use of this policy approach had little effect on the amount of currency in circulation or on other broad measures of the money supply, such as bank deposits. Nor did it result in higher inflation."
Obviously, he was lying or mistaken in the immediately preceding statement about "little effect on" money supply, since M1 was already up to 1,767.2 or by 25 percent in 2 years when he wrote as a result of his first set of asset purchases (over one trillion dollars worth)! On that day in November, he announced another $600 billion purchase, and that is what inflated the money supply from the then 1,767 to its current 2,330.7 (extremely close to it). Increases of this size in M1 are extraordinary....