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The reasons for the low inflation are quite specific to the US. One thing you can't escape is just how much money supply has increased - look at the M2 chart he
by jarym 6y ago
The reasons for the low inflation are quite specific to the US. One thing you can't escape is just how much money supply has increased - look at the M2 chart here: https://www.tradingview.com/chart/?symbol=FRED%3AM2 https://www.tradingview.com/chart/?symbol=FRED%3AM2
And if that does not convince you, try SPX/M2 on a monthly - and then think again if you think they're keeping the currency stable.
And if that does not convince you, try explaining why Gold is at all-time-highs. The market is not stupid, Gold is signalling what is happening very clearly.
- jarym 6y agoOh and last week Warren Buffett’s Berkshire Hathaway revealed their first ever stake in a gold mining company. Buffett had been anti-gold since forever and had plenty unkind things to say about goldbugs (and he was right). So if he of all people are suddenly being long gold (albeit indirectly via a mining company) then it would be very unwise to write off the significance.
- gwbas1c 6y ago> One thing you can't escape is just how much money supply has increased The money supply is supposed to expand as more people use it. That's why we don't use gold / silver / whatever coins anymore, we couldn't dig it out of the ground fast enough. When population grew, there wasn't enough coins to go around, so everyone just kept ledgers about who owed what to who.
- jarym 6y agoYes it is, it’s supposed to increase with population, GDP and a few other things. The US hasn’t seen population growth to justify THIS level of monetary expansion since WW2!