Sometimes the quieter political issues have more to say. High-decibel culture warriors have been getting people riled up over everything from Disney’s “The Little Mermaid” remake to a woman playing a flute. But more important things going on right now, such as the highest inflation in 40 years. And there are healthier outlets than politics for releasing pent-up anger.

Outrage makes sense as a business strategy, driving clicks and revenues. But it bombs as a political strategy. Poll after poll finds that voters prioritize inflation and the economy over the culture wars. One reason is that culture warfare distracts attention away from real issues. Another is that it conditions people to think in terms of us-against-them, and most people are sick of polarization.

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This, of course, ignores one of the most important factors in dealing with the money supply in the U.S., the reserve requirement for commercial banks.

The reserve requirement sets the ratio transactional banks must retain relative to their demand deposits. In simple form this means that a bank with $1 billion in deposits must hold $100 million in reserves by closing time every day. If a bank receives a new deposit of $50 million, and the reserve were, say, 10%, it may loan-out $45 millions and must hold the other $5 millions in reserve. But, you say, doesn’t this create an increase in the money supply? Obviously, the $45 millions in new loans creates additions to bank accounts in that amount. Who gave banks this power to create money? The FED, that’s who, under it charter.

Moreover, in response to the pandemic, the FED quietly lowered the reserve to zero in March 2020, where it remains today. The change in reserves allows banks to loan 100% of their funds with no reserves whatsoever and acts to increase the money supply of the U.S. Raising interest rates in order to lessen the money supply and reduce inflation would seem to be a more reasonable approach if the reserve requirement were moved back up to 10-12% to slow down the money-creation powers of commercial banks.

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