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re: Fed hides weekly M1 supply, says "money doesn't matter"

Posted on 4/8/21 at 7:39 am to
Posted by Ross
Member since Oct 2007
47824 posts
Posted on 4/8/21 at 7:39 am to
quote:

People have been worrying about runaway inflation since 2009 and it simply hasn’t even come close to materializing in this country.


In terms of CPI? No. In terms of housing and the stock market, absolutely it has.

Asset class inflation like this only serves to increase wealth inequality and in my view it absolutely does reduce faith in the USD, which will reduce the demand for treasury bonds, which will create a positive feedback loop in which our ability to raise capital comes more from the creation of money rather than the borrowing of it, which will absolutely eventually be an inflationary risk.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11442 posts
Posted on 4/8/21 at 7:53 am to
quote:

which will reduce the demand for treasury bonds, which will create a positive feedback loop in which our ability to raise capital comes more from the creation of money rather than the borrowing of it, which will absolutely eventually be an inflationary risk.


So you're on the insolvency train? I heard somebody do back napkin math on the corporate sector. If we go back to late 2000s interest rate levels corporate profits take a 33% haircut without even considering credit deterioration and the inability for companies to roll their debt at those levels
Posted by slackster
Houston
Member since Mar 2009
87142 posts
Posted on 4/8/21 at 8:03 am to
quote:

n terms of CPI? No. In terms of housing and the stock market, absolutely it has.

Asset class inflation like this only serves to increase wealth inequality and in my view it absolutely does reduce faith in the USD, which will reduce the demand for treasury bonds, which will create a positive feedback loop in which our ability to raise capital comes more from the creation of money rather than the borrowing of it, which will absolutely eventually be an inflationary risk.


People forget the USD and treasuries don’t exist in a bubble. Restive to the rest of the world the USD and treasuries are very strong and in very high demand.
Posted by buckeye_vol
Member since Jul 2014
35309 posts
Posted on 4/8/21 at 9:04 am to
quote:

Asset class inflation
But asset price inflation is completely different than “inflation.”
quote:

like this only serves to increase wealth inequality
Except wealth inequality has been showing signs of decreasing, at the very least not increasing.
This post was edited on 4/8/21 at 9:05 am
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