Basic economics: You increase the money supply without increasing the available products, you get inflation. think about it! If you have $100 chasing 10 lionel cars they are $10 apiece -- if you just add money and now have $200 still chasing the same 10 lionel cars, They will sell for $20 apiece.
If you have reduced supply and more money, it just makes it worse.
The Fed has been messing with the prime rate and other things to cause reduce the effects, but it is catching up to us.
