It's just a domino effect. Demand for good has decreased significantly during COVID as businesses had to scale back. Inevitably suppliers had to shutdown or cut production. FED started printing money in the meantime and giving consumers handouts to stimulate economy and increase spending. Instead, that money went into a stock market frenzy and savings accounts as people were forced to stay home. When COVID restrictions eased and economy started to open up and consumers rushed to spend their savings. This caused businesses and suppliers scramble to meet demand and ultimately triggered the supply chain crisis. As a result the prices on goods have shot up as there was too much money chasing to few goods and the economy wasn't able to keep up with demand after remaining dormant for months.
What a bizarre statement. We know that supply and demand drive modern economies. It's taught everywhere in schools. It's what we rely on along with key economic metrics to have an idea where things are headed. It's an odd flex to just throw all of that out as some voodoo magic.
If the value of a dollar doesn't depend on supply, we could print infinite amounts of it and reach infinite wealth. This false notion has caused so much misery in the last couple of centuries. Unfortunately value of money is also subject to supply.
>The value of money depends on the underlying asset
Printing more dollars does not create more 'underlying assets.' Therefore it doesn't make sense to claim there will be no effect on value of money if more money is chasing the underlying assets. It's quite possible the value of the dollar decreases.
Using your own definition, which itself is debatable, it is guaranteed the value of money will decrease if you only change the supply of money and nothing else.
Fiat money is absolutely printed out of thin air and it isn't backed by any asset. It is backed by the stability of the government that issues it. There is no amount of gold that can back a monetary system to sustain the levels of spending that we're seeing the US and other governments do, which is why most if not all modern governments are no longer on the gold standard.
