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

Posted on 4/8/21 at 8:03 am to
Posted by slackster
Houston
Member since Mar 2009
85496 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 Ross
Member since Oct 2007
47824 posts
Posted on 4/8/21 at 8:17 am to
I obviously don’t share your faith in this entire fiat system as is currently constructed and its long term viability because I think people and institutions will choose to opt out of bonds in favor of stronger assets, but projections are hard and you may end up being correct.

You’ve seen me post here, so you probably know I think an asset class like BTC has the ability to gobble up treasury bonds in people’s and institutions’ portfolios. But even if it isn’t BTC, some other nonsovereign store of value that people trust more than the bond seems inevitable to me. I just personally think BTC is the most robust of these assets.

For the record, it’s not like I actually want to be right about this
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
425879 posts
Posted on 4/8/21 at 9:49 am to
quote:

Restive to the rest of the world the USD and treasuries are very strong and in very high demand.

that just means everyone else is doing even more damage to their monetary policy. that's not reassuring
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