I humbly submit 3 ideas:
by money you need to think of big money, which includes rubles, euros, renminbe, etc. for us markets to go up, people can convert out of other currencies. In fact if central bankers make the market zoom, and increase financial dollar flow to the us markets, the dollar will not inflate relative to other currencies. when the euro goes up and the stock market goes up, its not exchange money
then there is new wealth, which is essentially "your piece" of the money supply. the more dollars that are printed causes more dollars to be in the market or the money market. the dollars have a choice to be in either and will be "new" money in either category
finally, money coming out of money markets is incoming buying money or incoming shorting money. if the market goes up, its buying money and this is different money than the money which comes out of the market which is parking money or investment money. Its sort of a radioactive tracer. the buying money pushes the market higher and encorages more buying money to come in, just like when you buy a stock above resistance that you had just sold.
So even with no fed and no foreign exchange, the money quality is different. yes there is no more money, but risk is repriced or there is more "buying money". so whether you simply count the bills, or give a different "quality" or charm to the dollar bill, the result is the same
