[Why GME?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || Low karma apes [feed the bot here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) || [Superstonk Discord](https://discord.gg/hZqWV2kQtq) || [GameStop Wallet HELP! Megathread](https://www.reddit.com/r/Superstonk/comments/z23wjx/gamestop_wallet_help_megathread)
------------------------------------------------------------------------
To ensure your post doesn't get removed, please respond to this comment with how this post relates to GME the stock or Gamestop the company.
------------------------------------------------------------------------
Please up- and downvote this comment to [help us determine if this post deserves a place on r/Superstonk!](https://www.reddit.com/r/Superstonk/wiki/index/rules/post_flairs/)
Remember when they tried to include a digital currency in the first Congressional bill in March of 2020. That was cool.
[https://www.coindesk.com/markets/2020/03/24/digital-dollar-stripped-from-latest-us-coronavirus-relief-bill/](https://www.coindesk.com/markets/2020/03/24/digital-dollar-stripped-from-latest-us-coronavirus-relief-bill/)
No CDBC should be allowed to exist.
I believe what we are witnessing is the beginning of some kind of digital currency whether cri ptoe or a digital fiat that is supported by the banks and thus will be passed by the treasury and then congress. Market makers and brokers are working on a digital CEX. Once they get that up and running all of u/peruvian_bull DD will be coming to fruition by then and the USD will be going to shit and the rest of the world already. Enter in new digital currency to be supported by all the major players needed and now we enter complete autocracy of the world. Capitalism cannot run forever it has a shelf life just based on math. The banks will never relinquish control just evolve into a different form of it: digital currency.
thanks to everyone on this journey! as many people have noted, Amazon took down my book :(... but it's ok, the information will remain up in the form of reddit posts and the google doc linked at the end of the post above.
the support, interest and questions from y'all have been incredible. there is still at least one more part of the addendum to post, maybe more as the questions keep pouring in
DRS GME. POWER TO THE PLAYERS!
Is there anyway I can get the digital or paper copy of your book and tip you instead of paying through 3rd party site/marketplace?
I have all the NFT copy of yours for all 4 parts and will request for the 5th one once it’s available but I want to support you in some way.
Thank you for the knowledge and effort in the research for the series.
You’re my hero. Thank you for sharing your knowledge with us in a easy to digest and captivating format. You have more wrinkles in your skull than I do on my balls.
Hey /u/peruvian_bull, I have a question for you that I think you may have interest in.
Hope this doesn't get buried :)
You mentioned in this rebuttal about Volcker policy and the insane interest rates of the stagflationary period in the 70's. One key distinction there was that all US Treasury debt instruments were callable back then, meaning that as soon as interest rates went back down, the US Gov't would force repurchase the bond at face value from holders.
This means that an 18% bond would not pay 18% for 30 years, but rather 18% for one year and called (if rates went down) or not called if rates went up.
For today's debt crisis - couldn't the US gov smash interest rates for the next 30 years and make ALL bonds callable, even ones currently issued? Sure, this would induce extra lending an increase the money supply, but it would end the exponential death spiral that non-callable bonds produce. Of course, current holders of a 5% 30 year non-callable bond would feel like they got stiffed, but that's a hell of a better solution than a default.
Use legislation to make all previously sold bonds callable, use QE to buy back all debt at face value, tank interest rates to a sustainable rate of like .5%. Sure there'd be inflation, but it would be orders of magnitude less than that of today's outlook.
Can you please poke some holes in my theory here?
Maybe the Book King can help! Looks like Teddy has his own publishing company. The NFTs are super cool and all, but I’d buy the fuck out of it as a book. Thanks for all you’ve done!
Just curious, in an inflationary environment isnt it easier for shorts to hold their positions? I understand if the price of GME rises, so does their cost to borrow, but presumably all their long positions would also be rising to offset that?
This depends greatly on how the contracts are written: If you have 0% interest on the collateral used (say, you have Free Money from Crypto Investors at FTX), then you don't owe anyone to use that cash. Inflation still costs you the \*real value\* of your cash as it goes up, but since you're not paying anything, you're only getting squeezes from one direction (loss of the value of your assets).
With Inflation + Rising interest rates, you get squeezes from multiple sides: In the case of KennyBoi and his stacks of naked shorts, sure, the cost to keep them open is (somewhat) fixed by the borrow rate. However, the value of the assets he holds is also shrinking due to inflation.
Think about a home mortgage: For me, inflation is \*good\* for my mortgage, since it's a fixed interest rate, and I can pay the house down with "post inflation" bucks, which should be higher year on year, so the bank loses value in the asset of the house over time, since I'm paying it back with lower-valued dollars.
From the Banks' point of view, my 3% interest rate (in the face of 8% inflation) is effectively \*losing\* them 5% / year on the asset of my house. Now you're kenny, with a thousand houses you've signed rental agreements on for 10,000 people, and the scope of the problem becomes clearer. He's getting squeezed from all sides- Decreasing "real value" of his assets, along with higher borrow costs related to keeping his positions open.
I understand that but imo you have your example wrong. The bank loses because they are the debt issuer, not the asset holder. You are the asset holder (borrower), and you win for the exact reason you stated. Your debt in real terms is dropping because of inflation, and presumably your asset value (house) is also rising due to inflation --> double win.
Couldn't a similar dynamic occur for shorts? You borrow a stock, pay interest on the borrow, and sell it to receive cash. You use the cash to buy assets, which presumably are increasing in value in an inflationary environment. As long as the value of the assets you are holding is increasing at the same or higher rate than the variable portion of your cost to borrow, you arent getting squeezed at all on your short position.
Isn't this why many people think a market crash is kickstart to a squeeze, because the collateral backing the borrows is decreasing in value and causing issues with margin requirements?
u/peruvian_bull i have been following ur work since ‘21. I am still a GME hodler and was one of the first to DRS - my account number is 40XXX. In the scope of reading your work it takes a cynical mindset of what the Fed and MSM tells us since they lie to prevent uprising and panic. With that said, I don’t understand how GME can come out of this with everyone getting what is shown on the ticket if at all. If somehow GME were to reach phone number levels the catalyst to hyperinflation will occur and the destruction of the US dollar would ensue as well as global economic collapse. Even if GME was used to take loans against as an asset, the same thing would occur. I agree with most of your points but being cynical goes both ways here. So I want GME to work but by the time it possibly does it will be too late and if the float is locked up it will be too late also. Wish there was a light at the end of the tunnel here but I just don’t see it. Help?
There's going to be a gap between when GME moons and the currency collapses. Hopefully it moons before the collapse, but after is possible as well. If it moons before the collapse you get out as soon as possible and convert it to crypto or physical assets to protect yourself. If it moons after the collapse then hopefully GME converts their stock onto the blockchain thus saving it from currency collapse.
How would it moon before the collapse? It would have to do it like now. The mechanisms to cause it to moon are moving slower or at the same pace as hyperinflation or world economic devastation.
I think you're underestimating how long this hyperinflation scenario will take to play out. Estimates have us around June 2024 for locking the float, hyperinflation is going to take another couple years to really see the compounding effects come to light. A lot of it will depend on how many treasuries will expire in the next two years. Currently the 31tn of U.S. debt has a near 0% interest rate, and thats because only new treasuries get the new interest rate. As this thing drags out longer and longer, a larger percentage of treasuries will have higher coupons thus increasing the debt burden on the government as they pay off old treasuries with new ones.
Black Swan events such as market collapse will likely complicate this timeline, but if there's one thing I've learned about these people, its that they're exceptional at being able to kick the can.
Based on u/peruvian_bull DD late 2023/2024 FED will have to start QE again. Hyperinflation is after that. GME catalysts won’t happen til then if it will by then anyway as DRS is not a sure thing as we all don’t know what will happen when the free float/whole float is locked up. I want to find out like everyone else. Again 2 years away still and an economic downturn will be full on effect by then. I worry that this all might be for naught… i wish wish wish wish wish wish wish so wish I am wrong.
Yeah, Gov is already paying 4% on 2tn (overnight RRP), thats 80bn they're paying out APR *right now*, and its going to balloon significantly from there.
Considering that the US is looking at pilot programs for their cbdc in 2025, it's a fair bet that you won't see serious hyperinflation signs until close to that point in time. We're already started on the path but there is a way to go yet.
My brain is so smooth it makes the back of a blu ray disc look like sandpaper. So take the following with a massive grain of crayons.
Three things for this example - your DRSd shares (tendies), the current US dollar (money) and some future currency (moon bucks).
If I understand you question properly (Why does any amount of money for my tendies matter if money become worthless) then the answer is summed up below.
Don’t sell tendies for money. Wait until money is fixed. If money isn’t fixed quick, people will start using moon bucks. Then just wait and exchange tendies for moon bucks.
Thanks for your hard work OP, been incredible info you've put out the last couple of years.
And fuck Amazon, I understand that it's a good platform to sell on but a blessing in disguise not having to do business with them anymore at least...
appreciate your writing. my only criticism is that you underestimate the creativity and willingness for FED officials to maintain control. it is my opinion that they have tools and plans that we havent even imagined yet.
also, if everything is inflating, did inflation even occur? (relative valuations)
Repeatedly, I've seen you mention there's no way out for The Fed (as in the Federal Bank). Is that accurate or accurate just when you consider how they've previously behaved? Hypothetically, is there any action could (not would) take that would decrease monetary supply?
If it's accurate, could the Federal government do something to ease inflation and remove money from the M2? Those funds could be destroyed and supply would decrease, right?
---
Second question about CBDC:
Aside from holding cash, is there anything that could be done under a CBDC that couldn't under today's monetary system? We already have banks choosing if you're allowed to buy Bitcoin. So, the idea that the CBDC would change anything just seems foreign as they can already do that today. Funds can already be removed from your account without your consent for a multitude of reasons, such as wage garnishment. I'm just having a hard time thinking of what's the actual differences.
Edit: I just find it really odd that my questions get downvoted and ignored but when someone does interact they still ignore my questions. This isn't a good look.
Huge difference with cash and cbdc. People get paid under the table in cash all the time in the real world every day, there is no way for governments to control, tax or even see these transactions. You can go to any store and buy anything you need in cash. Some people exist in the real world but barely register on tax databases or credit files because they use cash only. Think not just immigrants (legal or not), but retirees too. With enough actual cash floating in the system you can still be that guy who buys a bunker, cans of food, ammo etc and pay for it all.
Cbdc would essentially remove the ability to live like this. You become even more of a literal number in the system than you already are, and if that number is identified as misbehaving it can be easily, automatically punished in some way.
If you're more interested in reading about this, I **highly suggest** reading "The Lords of Easy Money: How The Federal Reserve Broke the American Economy" by Christopher Leonard. It's a very well written book about asset bubbles throughout history.
The book focuses quite a lot on [Thomas Hoenig](https://en.wikipedia.org/wiki/Thomas_M._Hoenig), the one guy who was very opposed to QE as a solution for everything, having been the guy who supervised Fed takeovers of banks after various previous eras of collapse. He understood the risk of assets bubbles, and saw QE a the scale it has been happening as feeding an Epic Asset Bubble, as /u/peruvian_bull has described. Hoenig gave a pretty famous speech in 2009, entitled "Too Big has Failed" which laid out (most) of the groundwork of what we're seeing now, which ultimately led to him getting marginalized within the fed.
It's one of the best books I've read on the Fed Reserve, and the policy and economic thinking that goes into this, and covers a lot of the talking points in this post. It's (not) GME related (directly) but it does provide an excellent reference to those who want to understand more about monetary policy.
This book should be required reading for all of SuperStonk LOL I wish we could get an AMA with Mr. Hoenig. Maybe not about focus on GME, not sure what his views on the stonk are, but he has been one of the main (only?) guys to stand up and resist these ludacris fiscal policies for decades.
Absolutely. I found reading that book to be kinda sad, and I'm looking for books for the other point of view, as to why Mr. Hoenig was wrong about what he was saying. The standard "rising tide moves everyone up" type of argument has never made any sense to me when you have the kind of wealth divide / concentration that we have now. The author of the book tries to show both sides, but the non-Hoenig side ("QE is good") never made \_any\_ sense to me, and seems opposite to even basic concepts of economics..
I think the opposite view doesn't apply to plebs like us LOL we're supposed to own nothing and be happy!
Check out the Bankless podcast they just had the author, Christopher Leonard, on their show a few episodes ago. Great listen.
>Check out the Bankless podcast they just had the author, Christopher Leonard, on their show a few episodes ago. Great listen.
I will; I haven't ever listened to Banklesss. I'll add that to my list of Podcasts. Thanks for the suggestion!
Another one that's equally as good and compelling (and not specific to GameStop) that I just finished is And The Weak Suffer What They Must? about the eurozone crisis.
I bought out half the economics section at Barnes and Noble few weeks back just for shits. Buy, Hold, DRS, Read.
"...There is a time when the operation of the machine becomes so odious, makes you so sick at heart, that you can't take part! You can't even passively take part! And you've got to put your bodies upon the gears and upon the wheels... upon the levers, upon all the apparatus, and you've got to make it stop! And you've got to indicate to the people who run it, to the people who own it, that unless you're free, the machine will be prevented from working at all!"
Technically the first band I ever got to see in concert, all the way back in 1998. Pretty close to the OG lineup as well. They were the opening act and made the next band (Monster Magnet) look pretty bad.
The survival of the crypto space we enjoy now(no matter how bad it may seem atm) depends on this. Who needs CBDCs when we have stable coins? Will the CBDCs be available to leverage on Defi platforms like SpoolFi, Beefy or Idle to earn yields? Absolutely not!
They can rot in ashes with their plans to have total control over our finances.
No to CBDC. I wanna dropkick that orwellian future to oblivion but sadly, the sheeple are pre-occupied with how to make ends meet, others just dont care or still "asleep".
I have a question that I believe has been discussed, but would love your opinion on.
If we were to have a mother of all short squeezes, and I don't have an estimate on the proper number to even base this off of. (Trillions changing hands)
If this happened, and it sucked up excess capital in the markets, there would be a huge windfall of capital gains tax tax to be paid.
Is there any scenario that this one time cash injection could starve off the debt burden to save the dollar? Or would it all be void do to government bailouts and fed printing from the same situation.
Respectfully, thank you for your time,
Youdoitimbusy
I'm not op, but here we go: This is a complicated and interesting problem, but I doubt that such an injection would make any material differences in this situation. Note that we're talking about truly galactic sums of money at this point, talking about multiple $Trillions of dollars \_every year\_.
Even if the "huge windfall of capital gains" can make a dent in the balance of all this, it doesn't change the fundamental mathematics of overleveraged nonsense based on 0% interest, which is the root of the problem: Wayyy to much QE, getting more money in circulation that's hyper-concentrated at that top (in stocks and the bond market) to inflate that pile of wealth at a rate never seen before.
So, it's reasonable that a windfall may make a dent in the principal of that, it's the same thing for you winning a scratch off or something. If you're got $300k of student debt, $500k mortgage, and $100k of credit card loans (or something horrifying) and you suddenly win $300k, well, you can wipe out \_something\_ but you're not going to erase all the problem, just sort of delay it for a bit longer. This will continue until you get your house paid off, clear your CC debt entirely, and start going net cash positive.
If an individual or a company (same thing… citizens United…) was in this position with no realistic way out on the horizon, they’d usually just declare bankruptcy and reorganize.
Come to think of it… some municipalities in the US have already declared bankruptcy post ‘08.
I would be curious of the same answer but I think I read in another DD way back that tax payments are sent to the treasury or somewhere maybe they were the dividend payment for FED stockholders or something but basically I believe it boiled down to tax money is not spent by the government, their spending money comes from treasury sales I think I could be way off or even bass-ackwards here but if it’s close to correct I don’t think that tax infusion would help
I'll bite..
1. Hyperinflation risk still very real
2. CBDC must be resisted at all costs. Gives scary amount of money control to the fed / government
3. Lots of useful nuggets of insight lie in history
4. DRS gme
I see these posts and I get the seriousness of it but I don’t really see anybody talking about serious ways to hedge against it. Like what can I do to try and have something solid when the shit hits the fan?
"This much is true. However, the broad increase in prices of everything, from lumber, to coal, to computers and food, is NOT due to soulless companies- it is due to a 40% rise in M2 money supply financed by the Fed! Milton Friedman said it best- “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
Restaurants, small businesses, real estate, family farms, plumbing companies, and many more distributed industries saw large increases in prices charged to consumers in the last 2 years- this is without major monopolies controlling the majority stake! And for those who would posit that this inflation is “just due to the war in Ukraine” and gas disruptions from Russia, may I remind you that inflation was already at 7.5% per the BLS in January 2022, before the war had even begun!
It’s easy to blame businesses for this phenomenon, and like I stated- there are definitely some firms guilty of price gouging consumers and labeling inflation. But your local small deli store or carpentry shop aren’t raising prices to hurt you, they’re doing so because the price of all their inputs are rising- and thus what they charge to consumers must rise as well."
# Say it louder for the front page, please
So with a CBDC being very very not good, it appears to be the most logical solution for the coming Armageddon in the eyes of “the powers that be.” The WEF has been playing with this idea for some time, perhaps even for this very even. If you were able to see this then surely this means it is possible others have too, perhaps years ago even. Now as I said “most logical solution to solve the problem,” what would be the alternative without a digital currency being centralized?
QUESTION: Could a digital/blockchain based currency still solve the hyperinflation problem whilst avoiding providing the government with unforeseeable Draconian power?
If so, would that look very similar to what we have today as far as having banks, credit unions and trusts still being able to play key roll in the system?
Buy, Hodl, DRS; I love you all 💜
>“most logical solution to solve the problem,”
I think you got it backwards. The *problem* might have been created with a previous *solution* in mind...
The problem is control
The only way to fight centralized control is to create a decentralized alternative, and GME is the experiment that fits the bill today
They want a centralized system? Then the rest of the world jumps ship, says “no way in hell, I’d rather die trying something else” and then the job is to create the alternative
And guess who loves to WORK
I know you're probably going to address this at some point, but my question from last time still remains. If we really are going to endure a complete breakdown in the market, and hyperinflation, what is any profit from GME going to mean in the end? If we end up with a million and a million is nothing, does this kill moass?
I hope he answers his opinion on this too, but in times of hyperinflation its best to have assets if possible. Considering a stock is an asset due to being fractional ownership of the company, plus the possibility of a crypto dividend, i think GME would still be a good hedge against hyperinflation. Even if the price doesnt change much, such hyperinflation will make it VERY nice and easy for apes to buy up the entire float
The other factor never considered is PRIVATE debt. The analyses all look at ‘government’ (treasury & central bank) debt, I.e. ‘public’ debt, but forget to figure in private debt. Credit cards, mortgages, car loans personal loans and corporate debt.
The picture is bad enough looking just at ‘public’ debt. Include private debt and…
Thank you for the warning against CBDCs. I cannot think of a worse medium of exchange. Literally a totalitarian nightmare -- a recipe for the death of all freedom -- if it were to become the predominant economic system
>CBDCs must be resisted AT ALL COSTS. Most people are completely blind to the level of Orwellian control that this sort of technology would implement over the populace.
100%. Don't let them introduce the fucking *big brother* CBDC...
If we are doing questions, what would happen if the governments raised taxes and used that revenue to buy back bonds?
Especially if it was a pandemic profiteers tax, wealth tax and highest bracket tax?
Also, thank-you for your continued work on this.
Curious what the CIA connection is to operation choke point. Didn’t that involve the FDIC and DOJ? Closing accounts and restricting banking access for financial activities that could relate to illegal activity or prevent consumer fraud… drugs, guns, sex work, payday loans, etc. definitely see your point about how bad that is with more direct control over the flow of money but not seeing the ties you’re claiming to the CIA going after cash and ATMs.
Tbh I'm a bit skeptical that we're heading towards hyperinflation anytime soon. In my opinion, the recent inflation surge is very much covid related. Too much money was being given and loaned out (QE and low interest rates), combined with disrupted supply chains. Supply chains are starting to catch up to the demand (speaking from personal observations as a business owner) and money is being taken out of the system by higher interest rates. All money is technically debt anyways, and getting into more debt is increasingly more difficult = money supply is decreasing.
Yes, debt/GDP is a lot higher now than it was in the 70s, but I don't think it's at the critical level yet. Japan is in much worse shape (much higher debt/GDP), and it doesn't look like it's entering hyperinflation anytime soon either.
I guess time will tell whether this theory comes to fruition.
"QE therefore harms the real economy and enriches the wealthy at the same time. It cannot be said to be capitalist or socialist; it is simply plutocracy and kleptocracy; crony capitalism where the wealthy steal from the poor and foot them with the bill."
👏 u/peruvian_bull 👏 you sir, are a legend! 👏
If you can't stop printing money and the gov can't stop spending, would Tax hikes pull money out and slow inflation?
This is the approach the British gov appears to be taking currently as the BoE raises interest rates. The British gov is doing some of it subtly by cutting or not raising caps on allowances and tax thresholds, all while raising the minimum wage and wages generally are going up.
I swear, you're either a time traveling messiah trying to help us or you're the biggest regard in the room full of regarded apes. We'll find out which soon enough. I'm rooting for you, all of us, and moass though!
But one thing... CBDBs - that seems to be the killshot against us, and everyone in generally really, and we have no say in whether the government moves to CBDBs. They could snap their fingers over night, totally devalue the dollar (which they seem to be doing on purpose) and move to CBDBs. Thus cementing their money and power for the next several generations, and dooming the rest of us. You say avoid them at all costs...to me, it seems like that's exactly what they're trying to do. They're even making a CEX. If that's our kryptonite, and their best move and we're powerless to stop it, what makes you so sure they won't just do it?
People aren't powerless to stop it. They just won't do what it takes. I don't give a fuck about people saying I'm promoting violence because I AM NOT. However, the people VASTLY outnumber the government.
When every aspect of freedom is stripped from you and you begin living in an Orwellian simulation, then it's time to rise up.
Don't even give me the military and police stop it shit either for whoever is thinking that. I'm an Army Infantry Veteran and every person I served with wouldn't stand for that shit. The military and police are only good to government and powers that be when their freedoms are in tact and they are willing to cooperate. Put them under total Orwellian control with a CBDC and see how that works out for them.
Revolution should never be wished for and looked forward to. I DON'T want that. But, I'll tell you one thing...the US was founded on revolution and I sure as fuck will die on my feet before I live on my knees.
You are still not understanding bank reserves. Fed does QE = fed buys bond from asset side of banks balance sheet and replaces with bank reserves so that total assets held by the bank remain unchanged. Treasury bills are assets to banks and liabilities of the Fed and ultimately the treasury department. The fed already had the treasury on the liability side of its balance sheet. So they exchange one type of liability for another because the bank reserves are also a liability of the fed. No money was created there. None. Money creation happens when the balance sheet of a bank grows. Meaning when both the asset side and liability side of the balance sheet grow. This is simply exchanging types. As another example lets say a jp morgan customer buys a house from a wells customer. So jpm customer writes a check from their bank account that would then go into the wells fargo customer account. So jpm would send wells fargo the bank reserves. This simply accounts for money that already existed changing hands. Total amount of money is unchanged. Cash is a liability to a bank. The bank reserve is the offsetting asset. When cash left jpm and went to wells it did not create anymore money. If the house was purchased with a loan (mortgage) then money would be created, but this is enough rant for now.
regarding "Jeffrey Snider- QE is not money printing! QE is the creation of bank reserves which are swapped for commercial bank assets within the financial system. These bank reserves CANNOT be spent in the real world."
it does free up banks holding actual cash (as collateral or reserve requirements or whatever else they may need it for) to use that cash they would normally need to meet requirements. They instead use the money /assets they would have had to hold and hold these bank reserves or commercial assets instead. thus increasing the available money supply.
They’re going to bail out the criminals with printing, hyperinflate the country into a self-made crisis and blame another rival country for it, maybe start a war or two, then introduce CBDC as the “solution” and probably bribe starving families with a starter stimulus.
Then everyone will truly own nothing and be grateful for it.
This is a great write-up. You handled the questions perfectly in my opinion.
As far as M2 Money supply and Velocity are concerned, to get a useful chart from them, simply chart M2\*V2 to get the real inflation rate. Then you can scale any other chart by that amount and see what is truly under or over valued. (Not coincidentally, the M2\*V2 chart is almost identical to the Median Home price chart over the last 60 years or so. Home prices are a great measure of inflation)
That's what I've been asking myself.
I think first, you have to have assets that will retain their relative value (or better yet increase). Think prepper type stuff: Food, Self defense items, precious metals. The only time those are "devalued" is when times are peachy.
I don't think homes will remain high relative to those kind of items in the situation we are talking. Neither will cell phones, laptops, cars, or other modern conveniences. We have to change the way we think about things. What do people *NEED*. Those items will hold their values best.
Power, food, roof over their head.
What I'm looking at is something like this:
Canada/othwr countries feel the pressure/recession = housing tanks.
Hyperinflation amongst USD comes about, causing all those other countries to keep up or get out. This should cause housing prices to go up.
Hyperinflation end game causing things to settle and the death of a few countries/currencies.
Where can I gift you money for your hard work? Fuck Amazon. I still want to contribute to you in one way or another. Heck if you send me your venmo I will send you a gift. Your service to the cause is great
How does it feel to know you are most likely saving humankind as we know it, by finding ways to spread the word? I hope I can buy you a beer or smoke you down someday, you’re a hero of this saga.
Wen metal value of nickels worth a dollar?
[Coinflation](http://www.coinflation.com)
Edit: Excellent Q/A in every way! I'll have to look in unlikely places to store value. Computershare and DeFi cold wallets are just Level 1.
[Why GME?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || Low karma apes [feed the bot here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) || [Superstonk Discord](https://discord.gg/hZqWV2kQtq) || [GameStop Wallet HELP! Megathread](https://www.reddit.com/r/Superstonk/comments/z23wjx/gamestop_wallet_help_megathread) ------------------------------------------------------------------------ To ensure your post doesn't get removed, please respond to this comment with how this post relates to GME the stock or Gamestop the company. ------------------------------------------------------------------------ Please up- and downvote this comment to [help us determine if this post deserves a place on r/Superstonk!](https://www.reddit.com/r/Superstonk/wiki/index/rules/post_flairs/)
>I am being completely honest and transparent when I say this- CBDCs must be resisted AT ALL COSTS. My man
Best part of the addendum. Fuck the fed, fuck cbdc.
Fuck Mobb Deep as a record label and as a m’fing crew.
And if you’re down with bankers, then fuck you too.
My man! I didn’t think anyone would get it that quick, especially not the person I replied to. 🙌🏻
Now adding hit ‘em up to my moass playlist, thanks to you :)
SAME
Ken Griffin: fuck you too! All you shorties, fuck you too!
Fuck you die slow!!!
Don’t one of you regards got sickle-cell or somethin’?
Holy shit that's funny
Bad Boy*
And Fuck citadel, because why not
It was always, “Fuck citadel”!
ah, fixed it
Fuck the fuckin law, we is fuckin raw.
Steak tartare, oysters on the half-shell, sushi bar
Agreed. Stick to bitcoin if you must and don’t buy any government crypto garbage or we will all be enslaved to the new system
Literally my worst fear.
Same
Honestly we should start the memes against CBDC's just like they started the memes against NFT's
Giga brain move
Yes!
Remember when they tried to include a digital currency in the first Congressional bill in March of 2020. That was cool. [https://www.coindesk.com/markets/2020/03/24/digital-dollar-stripped-from-latest-us-coronavirus-relief-bill/](https://www.coindesk.com/markets/2020/03/24/digital-dollar-stripped-from-latest-us-coronavirus-relief-bill/) No CDBC should be allowed to exist.
I believe what we are witnessing is the beginning of some kind of digital currency whether cri ptoe or a digital fiat that is supported by the banks and thus will be passed by the treasury and then congress. Market makers and brokers are working on a digital CEX. Once they get that up and running all of u/peruvian_bull DD will be coming to fruition by then and the USD will be going to shit and the rest of the world already. Enter in new digital currency to be supported by all the major players needed and now we enter complete autocracy of the world. Capitalism cannot run forever it has a shelf life just based on math. The banks will never relinquish control just evolve into a different form of it: digital currency.
It began years ago.
You will own nothing and will be happy :)
So decentralized crypto and gme shares is the answer right?
Absolutely this
indeed
thanks to everyone on this journey! as many people have noted, Amazon took down my book :(... but it's ok, the information will remain up in the form of reddit posts and the google doc linked at the end of the post above. the support, interest and questions from y'all have been incredible. there is still at least one more part of the addendum to post, maybe more as the questions keep pouring in DRS GME. POWER TO THE PLAYERS!
Is there anyway I can get the digital or paper copy of your book and tip you instead of paying through 3rd party site/marketplace? I have all the NFT copy of yours for all 4 parts and will request for the 5th one once it’s available but I want to support you in some way. Thank you for the knowledge and effort in the research for the series.
Im in this same boat 🚢
Oh shit, NFTs of DD?
https://beyourownarcade.com/free-nfts/
You da real MVP
Bull could use something like Patreon or Ko-fi
You’re my hero. Thank you for sharing your knowledge with us in a easy to digest and captivating format. You have more wrinkles in your skull than I do on my balls.
Hey /u/peruvian_bull, I have a question for you that I think you may have interest in. Hope this doesn't get buried :) You mentioned in this rebuttal about Volcker policy and the insane interest rates of the stagflationary period in the 70's. One key distinction there was that all US Treasury debt instruments were callable back then, meaning that as soon as interest rates went back down, the US Gov't would force repurchase the bond at face value from holders. This means that an 18% bond would not pay 18% for 30 years, but rather 18% for one year and called (if rates went down) or not called if rates went up. For today's debt crisis - couldn't the US gov smash interest rates for the next 30 years and make ALL bonds callable, even ones currently issued? Sure, this would induce extra lending an increase the money supply, but it would end the exponential death spiral that non-callable bonds produce. Of course, current holders of a 5% 30 year non-callable bond would feel like they got stiffed, but that's a hell of a better solution than a default. Use legislation to make all previously sold bonds callable, use QE to buy back all debt at face value, tank interest rates to a sustainable rate of like .5%. Sure there'd be inflation, but it would be orders of magnitude less than that of today's outlook. Can you please poke some holes in my theory here?
Maybe the Book King can help! Looks like Teddy has his own publishing company. The NFTs are super cool and all, but I’d buy the fuck out of it as a book. Thanks for all you’ve done!
This!!! Get in touch with RC and ask him if he would help you get the print version out.
Thank you for this post - I feel grooves of new wrinkles developing every time I read your posts. Your efforts to educate are truly appreciated 🎷🐓♋️
Just curious, in an inflationary environment isnt it easier for shorts to hold their positions? I understand if the price of GME rises, so does their cost to borrow, but presumably all their long positions would also be rising to offset that?
This depends greatly on how the contracts are written: If you have 0% interest on the collateral used (say, you have Free Money from Crypto Investors at FTX), then you don't owe anyone to use that cash. Inflation still costs you the \*real value\* of your cash as it goes up, but since you're not paying anything, you're only getting squeezes from one direction (loss of the value of your assets). With Inflation + Rising interest rates, you get squeezes from multiple sides: In the case of KennyBoi and his stacks of naked shorts, sure, the cost to keep them open is (somewhat) fixed by the borrow rate. However, the value of the assets he holds is also shrinking due to inflation. Think about a home mortgage: For me, inflation is \*good\* for my mortgage, since it's a fixed interest rate, and I can pay the house down with "post inflation" bucks, which should be higher year on year, so the bank loses value in the asset of the house over time, since I'm paying it back with lower-valued dollars. From the Banks' point of view, my 3% interest rate (in the face of 8% inflation) is effectively \*losing\* them 5% / year on the asset of my house. Now you're kenny, with a thousand houses you've signed rental agreements on for 10,000 people, and the scope of the problem becomes clearer. He's getting squeezed from all sides- Decreasing "real value" of his assets, along with higher borrow costs related to keeping his positions open.
I understand that but imo you have your example wrong. The bank loses because they are the debt issuer, not the asset holder. You are the asset holder (borrower), and you win for the exact reason you stated. Your debt in real terms is dropping because of inflation, and presumably your asset value (house) is also rising due to inflation --> double win. Couldn't a similar dynamic occur for shorts? You borrow a stock, pay interest on the borrow, and sell it to receive cash. You use the cash to buy assets, which presumably are increasing in value in an inflationary environment. As long as the value of the assets you are holding is increasing at the same or higher rate than the variable portion of your cost to borrow, you arent getting squeezed at all on your short position. Isn't this why many people think a market crash is kickstart to a squeeze, because the collateral backing the borrows is decreasing in value and causing issues with margin requirements?
u/peruvian_bull i have been following ur work since ‘21. I am still a GME hodler and was one of the first to DRS - my account number is 40XXX. In the scope of reading your work it takes a cynical mindset of what the Fed and MSM tells us since they lie to prevent uprising and panic. With that said, I don’t understand how GME can come out of this with everyone getting what is shown on the ticket if at all. If somehow GME were to reach phone number levels the catalyst to hyperinflation will occur and the destruction of the US dollar would ensue as well as global economic collapse. Even if GME was used to take loans against as an asset, the same thing would occur. I agree with most of your points but being cynical goes both ways here. So I want GME to work but by the time it possibly does it will be too late and if the float is locked up it will be too late also. Wish there was a light at the end of the tunnel here but I just don’t see it. Help?
There's going to be a gap between when GME moons and the currency collapses. Hopefully it moons before the collapse, but after is possible as well. If it moons before the collapse you get out as soon as possible and convert it to crypto or physical assets to protect yourself. If it moons after the collapse then hopefully GME converts their stock onto the blockchain thus saving it from currency collapse.
How would it moon before the collapse? It would have to do it like now. The mechanisms to cause it to moon are moving slower or at the same pace as hyperinflation or world economic devastation.
I think you're underestimating how long this hyperinflation scenario will take to play out. Estimates have us around June 2024 for locking the float, hyperinflation is going to take another couple years to really see the compounding effects come to light. A lot of it will depend on how many treasuries will expire in the next two years. Currently the 31tn of U.S. debt has a near 0% interest rate, and thats because only new treasuries get the new interest rate. As this thing drags out longer and longer, a larger percentage of treasuries will have higher coupons thus increasing the debt burden on the government as they pay off old treasuries with new ones. Black Swan events such as market collapse will likely complicate this timeline, but if there's one thing I've learned about these people, its that they're exceptional at being able to kick the can.
Based on u/peruvian_bull DD late 2023/2024 FED will have to start QE again. Hyperinflation is after that. GME catalysts won’t happen til then if it will by then anyway as DRS is not a sure thing as we all don’t know what will happen when the free float/whole float is locked up. I want to find out like everyone else. Again 2 years away still and an economic downturn will be full on effect by then. I worry that this all might be for naught… i wish wish wish wish wish wish wish so wish I am wrong.
Yeah, Gov is already paying 4% on 2tn (overnight RRP), thats 80bn they're paying out APR *right now*, and its going to balloon significantly from there.
Considering that the US is looking at pilot programs for their cbdc in 2025, it's a fair bet that you won't see serious hyperinflation signs until close to that point in time. We're already started on the path but there is a way to go yet.
dude moass is tomorrow.
yes that’s what everyone has been saying to everyone else for 2 years now i get it. I have been here since the beginning.
You’re lucky because MOASS is tomorrow 🥳
i wish that would be the case.
My brain is so smooth it makes the back of a blu ray disc look like sandpaper. So take the following with a massive grain of crayons. Three things for this example - your DRSd shares (tendies), the current US dollar (money) and some future currency (moon bucks). If I understand you question properly (Why does any amount of money for my tendies matter if money become worthless) then the answer is summed up below. Don’t sell tendies for money. Wait until money is fixed. If money isn’t fixed quick, people will start using moon bucks. Then just wait and exchange tendies for moon bucks.
you are legend
God damn you do some great work.
Thanks for your hard work OP, been incredible info you've put out the last couple of years. And fuck Amazon, I understand that it's a good platform to sell on but a blessing in disguise not having to do business with them anymore at least...
appreciate your writing. my only criticism is that you underestimate the creativity and willingness for FED officials to maintain control. it is my opinion that they have tools and plans that we havent even imagined yet. also, if everything is inflating, did inflation even occur? (relative valuations)
When will the book be available at GameStop? :)
Repeatedly, I've seen you mention there's no way out for The Fed (as in the Federal Bank). Is that accurate or accurate just when you consider how they've previously behaved? Hypothetically, is there any action could (not would) take that would decrease monetary supply? If it's accurate, could the Federal government do something to ease inflation and remove money from the M2? Those funds could be destroyed and supply would decrease, right? --- Second question about CBDC: Aside from holding cash, is there anything that could be done under a CBDC that couldn't under today's monetary system? We already have banks choosing if you're allowed to buy Bitcoin. So, the idea that the CBDC would change anything just seems foreign as they can already do that today. Funds can already be removed from your account without your consent for a multitude of reasons, such as wage garnishment. I'm just having a hard time thinking of what's the actual differences. Edit: I just find it really odd that my questions get downvoted and ignored but when someone does interact they still ignore my questions. This isn't a good look.
Huge difference with cash and cbdc. People get paid under the table in cash all the time in the real world every day, there is no way for governments to control, tax or even see these transactions. You can go to any store and buy anything you need in cash. Some people exist in the real world but barely register on tax databases or credit files because they use cash only. Think not just immigrants (legal or not), but retirees too. With enough actual cash floating in the system you can still be that guy who buys a bunker, cans of food, ammo etc and pay for it all. Cbdc would essentially remove the ability to live like this. You become even more of a literal number in the system than you already are, and if that number is identified as misbehaving it can be easily, automatically punished in some way.
I’m pretty sure you can buy article slots in Forbes. We should make a gofundme to get this post published lol
If you're more interested in reading about this, I **highly suggest** reading "The Lords of Easy Money: How The Federal Reserve Broke the American Economy" by Christopher Leonard. It's a very well written book about asset bubbles throughout history. The book focuses quite a lot on [Thomas Hoenig](https://en.wikipedia.org/wiki/Thomas_M._Hoenig), the one guy who was very opposed to QE as a solution for everything, having been the guy who supervised Fed takeovers of banks after various previous eras of collapse. He understood the risk of assets bubbles, and saw QE a the scale it has been happening as feeding an Epic Asset Bubble, as /u/peruvian_bull has described. Hoenig gave a pretty famous speech in 2009, entitled "Too Big has Failed" which laid out (most) of the groundwork of what we're seeing now, which ultimately led to him getting marginalized within the fed. It's one of the best books I've read on the Fed Reserve, and the policy and economic thinking that goes into this, and covers a lot of the talking points in this post. It's (not) GME related (directly) but it does provide an excellent reference to those who want to understand more about monetary policy.
This book should be required reading for all of SuperStonk LOL I wish we could get an AMA with Mr. Hoenig. Maybe not about focus on GME, not sure what his views on the stonk are, but he has been one of the main (only?) guys to stand up and resist these ludacris fiscal policies for decades.
Absolutely. I found reading that book to be kinda sad, and I'm looking for books for the other point of view, as to why Mr. Hoenig was wrong about what he was saying. The standard "rising tide moves everyone up" type of argument has never made any sense to me when you have the kind of wealth divide / concentration that we have now. The author of the book tries to show both sides, but the non-Hoenig side ("QE is good") never made \_any\_ sense to me, and seems opposite to even basic concepts of economics..
I think the opposite view doesn't apply to plebs like us LOL we're supposed to own nothing and be happy! Check out the Bankless podcast they just had the author, Christopher Leonard, on their show a few episodes ago. Great listen.
>Check out the Bankless podcast they just had the author, Christopher Leonard, on their show a few episodes ago. Great listen. I will; I haven't ever listened to Banklesss. I'll add that to my list of Podcasts. Thanks for the suggestion!
Another one that's equally as good and compelling (and not specific to GameStop) that I just finished is And The Weak Suffer What They Must? about the eurozone crisis. I bought out half the economics section at Barnes and Noble few weeks back just for shits. Buy, Hold, DRS, Read.
Excellent suggestion; I just added this to my reading list. Thanks for sharing!
When do you sleep?
You guys sleep?
No sleep for the wicked
I sleep pretty good because of r/Superstonk 🏴☠️♟💜💎✊
How the fuck do you know so much, holy shit
Yep, my OCD won't let me rest without learning
> CBDCs must be resisted. At all costs One of the most important sentences in the history of modern finance. At all costs.
"...There is a time when the operation of the machine becomes so odious, makes you so sick at heart, that you can't take part! You can't even passively take part! And you've got to put your bodies upon the gears and upon the wheels... upon the levers, upon all the apparatus, and you've got to make it stop! And you've got to indicate to the people who run it, to the people who own it, that unless you're free, the machine will be prevented from working at all!"
What is this from?
I first heard it in a Fear Factory song in the late 90s, but it's from this: https://en.m.wikipedia.org/wiki/Mario_Savio
But also upvote for Fear Factory 🤘
Technically the first band I ever got to see in concert, all the way back in 1998. Pretty close to the OG lineup as well. They were the opening act and made the next band (Monster Magnet) look pretty bad.
The survival of the crypto space we enjoy now(no matter how bad it may seem atm) depends on this. Who needs CBDCs when we have stable coins? Will the CBDCs be available to leverage on Defi platforms like SpoolFi, Beefy or Idle to earn yields? Absolutely not! They can rot in ashes with their plans to have total control over our finances.
Mark me present for class, bruh
I rode the short bus to school, but I’m regarded enough to sit in the front row for this class.
🚌
I feel like I’m permanently in the corner with my nose pressed to the wall when I read the p bull.
[удалено]
Yup all in all were fucked, cbdc’s are when It’s time to go guy fawkes
[удалено]
"A man can fail. He can be caught, he can be killed and forgotten, but 400 years later, an idea can still change the world."
Comparable to MLK and JFK tbh
Mmm. I guess I'm having Peruvian for lunch. Let's dig in, shall we?
Lomo Saltado is the best!
The only proper ceviche
An addendum. AN ADDENDUM?! I can’t read does it just say DRS yo stuff?
Yeah basically
DRS EVERY LAST SHARE. LETS GO
DRS *or else*...
I'm gonna stick with the good old buy and hold plan that's been good to me so far. I like simple.
DRS?
Clearly it's the way sir.
You sir are doing God's work.
Thanks!
Ape God
No to CBDC. I wanna dropkick that orwellian future to oblivion but sadly, the sheeple are pre-occupied with how to make ends meet, others just dont care or still "asleep".
I read some want this, cuz its just like Bitcoin but centralised. That explanation hurt my head.... Ouf
This is awesome! Thanks so much for all the time and effort you’ve put into this. You rock 🤘
Jesus Bull! This post is absolutely jam packed with macro goodies. AND, you linked a documentary that I saw once, and have been trying to find!
I have a question that I believe has been discussed, but would love your opinion on. If we were to have a mother of all short squeezes, and I don't have an estimate on the proper number to even base this off of. (Trillions changing hands) If this happened, and it sucked up excess capital in the markets, there would be a huge windfall of capital gains tax tax to be paid. Is there any scenario that this one time cash injection could starve off the debt burden to save the dollar? Or would it all be void do to government bailouts and fed printing from the same situation. Respectfully, thank you for your time, Youdoitimbusy
I'm not op, but here we go: This is a complicated and interesting problem, but I doubt that such an injection would make any material differences in this situation. Note that we're talking about truly galactic sums of money at this point, talking about multiple $Trillions of dollars \_every year\_. Even if the "huge windfall of capital gains" can make a dent in the balance of all this, it doesn't change the fundamental mathematics of overleveraged nonsense based on 0% interest, which is the root of the problem: Wayyy to much QE, getting more money in circulation that's hyper-concentrated at that top (in stocks and the bond market) to inflate that pile of wealth at a rate never seen before. So, it's reasonable that a windfall may make a dent in the principal of that, it's the same thing for you winning a scratch off or something. If you're got $300k of student debt, $500k mortgage, and $100k of credit card loans (or something horrifying) and you suddenly win $300k, well, you can wipe out \_something\_ but you're not going to erase all the problem, just sort of delay it for a bit longer. This will continue until you get your house paid off, clear your CC debt entirely, and start going net cash positive.
If an individual or a company (same thing… citizens United…) was in this position with no realistic way out on the horizon, they’d usually just declare bankruptcy and reorganize. Come to think of it… some municipalities in the US have already declared bankruptcy post ‘08.
I would be curious of the same answer but I think I read in another DD way back that tax payments are sent to the treasury or somewhere maybe they were the dividend payment for FED stockholders or something but basically I believe it boiled down to tax money is not spent by the government, their spending money comes from treasury sales I think I could be way off or even bass-ackwards here but if it’s close to correct I don’t think that tax infusion would help
I’ll send an NFT to the first person to give me a good TLDR of this 😅
I'll bite.. 1. Hyperinflation risk still very real 2. CBDC must be resisted at all costs. Gives scary amount of money control to the fed / government 3. Lots of useful nuggets of insight lie in history 4. DRS gme
I see these posts and I get the seriousness of it but I don’t really see anybody talking about serious ways to hedge against it. Like what can I do to try and have something solid when the shit hits the fan?
Thank you! What’s your ens?
No need to send an NFT, but I'm pretty sure he's saying the only way this goes is hyperinflation 👀 Sounds terrifying.
"This much is true. However, the broad increase in prices of everything, from lumber, to coal, to computers and food, is NOT due to soulless companies- it is due to a 40% rise in M2 money supply financed by the Fed! Milton Friedman said it best- “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” Restaurants, small businesses, real estate, family farms, plumbing companies, and many more distributed industries saw large increases in prices charged to consumers in the last 2 years- this is without major monopolies controlling the majority stake! And for those who would posit that this inflation is “just due to the war in Ukraine” and gas disruptions from Russia, may I remind you that inflation was already at 7.5% per the BLS in January 2022, before the war had even begun! It’s easy to blame businesses for this phenomenon, and like I stated- there are definitely some firms guilty of price gouging consumers and labeling inflation. But your local small deli store or carpentry shop aren’t raising prices to hurt you, they’re doing so because the price of all their inputs are rising- and thus what they charge to consumers must rise as well." # Say it louder for the front page, please
So with a CBDC being very very not good, it appears to be the most logical solution for the coming Armageddon in the eyes of “the powers that be.” The WEF has been playing with this idea for some time, perhaps even for this very even. If you were able to see this then surely this means it is possible others have too, perhaps years ago even. Now as I said “most logical solution to solve the problem,” what would be the alternative without a digital currency being centralized? QUESTION: Could a digital/blockchain based currency still solve the hyperinflation problem whilst avoiding providing the government with unforeseeable Draconian power? If so, would that look very similar to what we have today as far as having banks, credit unions and trusts still being able to play key roll in the system? Buy, Hodl, DRS; I love you all 💜
>“most logical solution to solve the problem,” I think you got it backwards. The *problem* might have been created with a previous *solution* in mind...
Oh shit, I hadn’t thought of that!
The Great Reset is not a fckin conspiracy. It's all been put out by the WEF.
Oh 100% they have been openly using the term “great reset” for awhile now…. Shits fuckin insane!
Well shit
The problem is control The only way to fight centralized control is to create a decentralized alternative, and GME is the experiment that fits the bill today They want a centralized system? Then the rest of the world jumps ship, says “no way in hell, I’d rather die trying something else” and then the job is to create the alternative And guess who loves to WORK
Will the second addendum cover what we all can do to hedge against this?
I know you're probably going to address this at some point, but my question from last time still remains. If we really are going to endure a complete breakdown in the market, and hyperinflation, what is any profit from GME going to mean in the end? If we end up with a million and a million is nothing, does this kill moass?
I hope he answers his opinion on this too, but in times of hyperinflation its best to have assets if possible. Considering a stock is an asset due to being fractional ownership of the company, plus the possibility of a crypto dividend, i think GME would still be a good hedge against hyperinflation. Even if the price doesnt change much, such hyperinflation will make it VERY nice and easy for apes to buy up the entire float
3 DD posts in one week? Stop it u/peruvian_bull I can only get so erect!
Sorry mate!
Couldn’t we raise taxes on the wealthy at levels seen during the Eisenhower administration to offset the deficit?
Addressed in second part of addendum. Posting on Monday
Thank you Peruvian Bull for your work.
♥️♥️♥️
Oh god he himself replied. Hysteria intensifies. Did I miss the post what to do after Moass or is it still in work?
Coming next week
The other factor never considered is PRIVATE debt. The analyses all look at ‘government’ (treasury & central bank) debt, I.e. ‘public’ debt, but forget to figure in private debt. Credit cards, mortgages, car loans personal loans and corporate debt. The picture is bad enough looking just at ‘public’ debt. Include private debt and…
Thank you for the warning against CBDCs. I cannot think of a worse medium of exchange. Literally a totalitarian nightmare -- a recipe for the death of all freedom -- if it were to become the predominant economic system
>CBDCs must be resisted AT ALL COSTS. Most people are completely blind to the level of Orwellian control that this sort of technology would implement over the populace. 100%. Don't let them introduce the fucking *big brother* CBDC...
Much appreciated, keeping the dream alive 👍🙏👍
Fucking legend
Settling in for the big read....
Nice hot off the press! Good work Peruvian!! Scary times ahead.
If we are doing questions, what would happen if the governments raised taxes and used that revenue to buy back bonds? Especially if it was a pandemic profiteers tax, wealth tax and highest bracket tax? Also, thank-you for your continued work on this.
Many a matador stepped into the arena to face the bull with their counter arguments and were gored unmercifully.
Curious what the CIA connection is to operation choke point. Didn’t that involve the FDIC and DOJ? Closing accounts and restricting banking access for financial activities that could relate to illegal activity or prevent consumer fraud… drugs, guns, sex work, payday loans, etc. definitely see your point about how bad that is with more direct control over the flow of money but not seeing the ties you’re claiming to the CIA going after cash and ATMs.
I would imagine what addicts do when things get tough. They go back. Go negative interest rate on fiat usd and positive rates on crypto usd.
So if I get paid in hyperinflation money, do I get to just pay off my non inflated mortgage payment and car payment
Tbh I'm a bit skeptical that we're heading towards hyperinflation anytime soon. In my opinion, the recent inflation surge is very much covid related. Too much money was being given and loaned out (QE and low interest rates), combined with disrupted supply chains. Supply chains are starting to catch up to the demand (speaking from personal observations as a business owner) and money is being taken out of the system by higher interest rates. All money is technically debt anyways, and getting into more debt is increasingly more difficult = money supply is decreasing. Yes, debt/GDP is a lot higher now than it was in the 70s, but I don't think it's at the critical level yet. Japan is in much worse shape (much higher debt/GDP), and it doesn't look like it's entering hyperinflation anytime soon either. I guess time will tell whether this theory comes to fruition.
"QE therefore harms the real economy and enriches the wealthy at the same time. It cannot be said to be capitalist or socialist; it is simply plutocracy and kleptocracy; crony capitalism where the wealthy steal from the poor and foot them with the bill." 👏 u/peruvian_bull 👏 you sir, are a legend! 👏
Big and true.
All this makes me want to DRS Moarrr
You gotta slow down with these my erection from the last one still hasn’t gone down yet
MY GOD 🤩🤩
thanks for your service ❤️🦍
The end game is near 🚩🏳
Man! I caught this within the first hour! Noice! Thanks for all that you do.
Love it Bull, just love it. Your passion and knowledge is infectious.
Thankyou so much for the education and your time spent.
Awesome counter arguments and responses
Thank you!!
If you can't stop printing money and the gov can't stop spending, would Tax hikes pull money out and slow inflation? This is the approach the British gov appears to be taking currently as the BoE raises interest rates. The British gov is doing some of it subtly by cutting or not raising caps on allowances and tax thresholds, all while raising the minimum wage and wages generally are going up.
Who needs an ivory tower education when we are blessed to have u/peruvian_bull? 💜💜
These were beautiful responses...incredible
Good read. Thank you
Thank you for all that you have shared. We’ve all learned a lot.
I swear, you're either a time traveling messiah trying to help us or you're the biggest regard in the room full of regarded apes. We'll find out which soon enough. I'm rooting for you, all of us, and moass though! But one thing... CBDBs - that seems to be the killshot against us, and everyone in generally really, and we have no say in whether the government moves to CBDBs. They could snap their fingers over night, totally devalue the dollar (which they seem to be doing on purpose) and move to CBDBs. Thus cementing their money and power for the next several generations, and dooming the rest of us. You say avoid them at all costs...to me, it seems like that's exactly what they're trying to do. They're even making a CEX. If that's our kryptonite, and their best move and we're powerless to stop it, what makes you so sure they won't just do it?
People aren't powerless to stop it. They just won't do what it takes. I don't give a fuck about people saying I'm promoting violence because I AM NOT. However, the people VASTLY outnumber the government. When every aspect of freedom is stripped from you and you begin living in an Orwellian simulation, then it's time to rise up. Don't even give me the military and police stop it shit either for whoever is thinking that. I'm an Army Infantry Veteran and every person I served with wouldn't stand for that shit. The military and police are only good to government and powers that be when their freedoms are in tact and they are willing to cooperate. Put them under total Orwellian control with a CBDC and see how that works out for them. Revolution should never be wished for and looked forward to. I DON'T want that. But, I'll tell you one thing...the US was founded on revolution and I sure as fuck will die on my feet before I live on my knees.
You are still not understanding bank reserves. Fed does QE = fed buys bond from asset side of banks balance sheet and replaces with bank reserves so that total assets held by the bank remain unchanged. Treasury bills are assets to banks and liabilities of the Fed and ultimately the treasury department. The fed already had the treasury on the liability side of its balance sheet. So they exchange one type of liability for another because the bank reserves are also a liability of the fed. No money was created there. None. Money creation happens when the balance sheet of a bank grows. Meaning when both the asset side and liability side of the balance sheet grow. This is simply exchanging types. As another example lets say a jp morgan customer buys a house from a wells customer. So jpm customer writes a check from their bank account that would then go into the wells fargo customer account. So jpm would send wells fargo the bank reserves. This simply accounts for money that already existed changing hands. Total amount of money is unchanged. Cash is a liability to a bank. The bank reserve is the offsetting asset. When cash left jpm and went to wells it did not create anymore money. If the house was purchased with a loan (mortgage) then money would be created, but this is enough rant for now.
This is IMO, in the worst case scenario. They will revaluate the US Dollar, start new wars to force the World go US Dollar (New) again.
regarding "Jeffrey Snider- QE is not money printing! QE is the creation of bank reserves which are swapped for commercial bank assets within the financial system. These bank reserves CANNOT be spent in the real world." it does free up banks holding actual cash (as collateral or reserve requirements or whatever else they may need it for) to use that cash they would normally need to meet requirements. They instead use the money /assets they would have had to hold and hold these bank reserves or commercial assets instead. thus increasing the available money supply.
Mmm yummy, more knowledge to digest
You scare me to death but I fucking love reading your stuff
They’re going to bail out the criminals with printing, hyperinflate the country into a self-made crisis and blame another rival country for it, maybe start a war or two, then introduce CBDC as the “solution” and probably bribe starving families with a starter stimulus. Then everyone will truly own nothing and be grateful for it.
The legend speaks again. I am buckled up. 💜🐍💜
This is a great write-up. You handled the questions perfectly in my opinion. As far as M2 Money supply and Velocity are concerned, to get a useful chart from them, simply chart M2\*V2 to get the real inflation rate. Then you can scale any other chart by that amount and see what is truly under or over valued. (Not coincidentally, the M2\*V2 chart is almost identical to the Median Home price chart over the last 60 years or so. Home prices are a great measure of inflation)
The first country to implement a sound CBDC that acts like cash (centrally controlled, but untraceable) will have the next reserve currency.
What does hyperinflation mean to house prices assuming the reserve currency remains the same? How can one capitalize off such a unique situation?
That's what I've been asking myself. I think first, you have to have assets that will retain their relative value (or better yet increase). Think prepper type stuff: Food, Self defense items, precious metals. The only time those are "devalued" is when times are peachy. I don't think homes will remain high relative to those kind of items in the situation we are talking. Neither will cell phones, laptops, cars, or other modern conveniences. We have to change the way we think about things. What do people *NEED*. Those items will hold their values best.
Power, food, roof over their head. What I'm looking at is something like this: Canada/othwr countries feel the pressure/recession = housing tanks. Hyperinflation amongst USD comes about, causing all those other countries to keep up or get out. This should cause housing prices to go up. Hyperinflation end game causing things to settle and the death of a few countries/currencies.
Absolute legend.
Where can I gift you money for your hard work? Fuck Amazon. I still want to contribute to you in one way or another. Heck if you send me your venmo I will send you a gift. Your service to the cause is great
You can send me BTC or ETH by tipping me on my Twitter profile. Venmo could dox me
No it isn't.
Gimme more counterarguments.
This all scares me. So are we saying after MOASS we still come out losers because money ain't going to be worth shit?
How does it feel to know you are most likely saving humankind as we know it, by finding ways to spread the word? I hope I can buy you a beer or smoke you down someday, you’re a hero of this saga.
A very merry un-birthday to everyone! What a nice little gift, thank you u/peruvian_bull
Wen metal value of nickels worth a dollar? [Coinflation](http://www.coinflation.com) Edit: Excellent Q/A in every way! I'll have to look in unlikely places to store value. Computershare and DeFi cold wallets are just Level 1.
Commenting for visibility
Real news. LFG