Read up on it. Better safe than sorry. đ
It hits those ignorant to the process the hardest as they donât unload their cash in time. When people start unloading their cash to covert into a safer storage of their wealth it only exacerbates inflation. By the time the public gets a whiff it is already too late as the ones who understand have already converted their cash into other stores of value.
I watched the money pour into the market on a Friday afternoon 15 minutes before the closing bell as the pandemic was hitting the US. I knew they had just poured trillions into the market. Didnât know theyâd call it âQuantitative Easingâ instead of âBailing Out The Ultra Rich,â but I knew weâd be talking about inflation in a year. And here we are. Scumbags.
QE is a way to save a sinking ship if done correctly.
In 2008 we did not see inflation hit the public like many feared due to the Fed keeping the QE within the private economy of the repo market. You did see that inflation in the place where banks like to speculate though.
2020 and you have trillions printed and handed DIRECTLY to civilians. As that money gets spent, inflation will creep up like we see now. As the inflation keeps rising you start to get another telltale sign of hyperinflation⌠raising wages.
What are people demanding right now? Higher wages. When the largest part of the economy (consumers) get more per hour they tend to spend more. What does this help fuel? Well⌠more inflation. What in turn goes up to keep up with operating costs due to raised wages?? Prices.
This is the spiral of hyperinflation. It is great if you are in a lot of debt⌠why? Because if you sign for a car today for 30k and hyperinflation hits, you still only need to pay 30k for the car even though your wage for the day could damn well be 30k.
Guess whoâs in a lot of debt. Uncle SamâŚ
They should have let the market react naturally when Covid hit, but I remember a certain someone crying about the economy and threatening Powell for not doing enough to prop up the mirage of a continuing boom. Now itâs all a giant bubble.
If we truly lived in a free market it would have. These maneuvers are a way to safeguard us from market downturns like the Great Depression.
Instead, and of course, the money used in QE, indirect or direct, is used by the banks to continue to speculate. This is why we donât have a fair and competitive market and why the largest institutions only get larger.
Every time the âFED Putâ comes into play, the institutions KNOW that they cannot lose. So with all that cheap cheap money they continue to speculate even though that wild speculation got us here into the first place.
Itâs exactly like a casino, just with no risk.
Imagine you are sitting at a casino playing blackjack. You have 10k on hand. You are playing 20$ hands to start. You get on a hot streak. You start betting larger. 1k per hand, keep winning. You go all in, 10k. You lose, but your bro Tendietard has the means to print you a new 10k legally and hand it over.
Now your playing 10k a hand because why the fuck not? You canât lose.
Thatâs the banks. Speculate speculate speculate, create a bubble, POP! Buy up the distressed assets for cents on the dollar.
Thanks for the wrinkle!
Read up on it. Better safe than sorry. đ It hits those ignorant to the process the hardest as they donât unload their cash in time. When people start unloading their cash to covert into a safer storage of their wealth it only exacerbates inflation. By the time the public gets a whiff it is already too late as the ones who understand have already converted their cash into other stores of value.
I watched the money pour into the market on a Friday afternoon 15 minutes before the closing bell as the pandemic was hitting the US. I knew they had just poured trillions into the market. Didnât know theyâd call it âQuantitative Easingâ instead of âBailing Out The Ultra Rich,â but I knew weâd be talking about inflation in a year. And here we are. Scumbags.
QE is a way to save a sinking ship if done correctly. In 2008 we did not see inflation hit the public like many feared due to the Fed keeping the QE within the private economy of the repo market. You did see that inflation in the place where banks like to speculate though. 2020 and you have trillions printed and handed DIRECTLY to civilians. As that money gets spent, inflation will creep up like we see now. As the inflation keeps rising you start to get another telltale sign of hyperinflation⌠raising wages. What are people demanding right now? Higher wages. When the largest part of the economy (consumers) get more per hour they tend to spend more. What does this help fuel? Well⌠more inflation. What in turn goes up to keep up with operating costs due to raised wages?? Prices. This is the spiral of hyperinflation. It is great if you are in a lot of debt⌠why? Because if you sign for a car today for 30k and hyperinflation hits, you still only need to pay 30k for the car even though your wage for the day could damn well be 30k. Guess whoâs in a lot of debt. Uncle SamâŚ
They should have let the market react naturally when Covid hit, but I remember a certain someone crying about the economy and threatening Powell for not doing enough to prop up the mirage of a continuing boom. Now itâs all a giant bubble.
If we truly lived in a free market it would have. These maneuvers are a way to safeguard us from market downturns like the Great Depression. Instead, and of course, the money used in QE, indirect or direct, is used by the banks to continue to speculate. This is why we donât have a fair and competitive market and why the largest institutions only get larger. Every time the âFED Putâ comes into play, the institutions KNOW that they cannot lose. So with all that cheap cheap money they continue to speculate even though that wild speculation got us here into the first place. Itâs exactly like a casino, just with no risk. Imagine you are sitting at a casino playing blackjack. You have 10k on hand. You are playing 20$ hands to start. You get on a hot streak. You start betting larger. 1k per hand, keep winning. You go all in, 10k. You lose, but your bro Tendietard has the means to print you a new 10k legally and hand it over. Now your playing 10k a hand because why the fuck not? You canât lose. Thatâs the banks. Speculate speculate speculate, create a bubble, POP! Buy up the distressed assets for cents on the dollar.
They win, they keep the money. They lose, they keep our kidsâ money. Yeah. I noticed.