Even if it doesn't enter M1 circulation and directly increase monetary supply, it put upwardly increasing inflationary pressure on the dollar by inflating demand artificially.
Increasing M1 alone doesn't necessary lead to inflation. Unless people spend money nothing realky changes. I am also not sure who would care about cash and equivalents when M2 and M3 measures are usually much bigger.
I would look more towards outstanding bonds or GDP to debt ratio. The US has overspent for decades but it worked very well because as world's reserve currency it didn't lead to currency depreciation as any other country would have experienced in a similar situation.
Even if it doesn't enter M1 circulation and directly increase monetary supply, it put upwardly increasing inflationary pressure on the dollar by inflating demand artificially.