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Hi, I'm the author. > Money isn't created primarily because governments print it; whenever a bank creates a loan money is created, and when they call in loans
by cryptoanonymous 6y ago
Hi, I'm the author.
> Money isn't created primarily because governments print it; whenever a bank creates a loan money is created, and when they call in loans money disappears.
Yes this is right, and I am in fact aware of this mechanism. As I say in the post: "[...] anticipated high levels of lending and consumer spending post-pandemic, seemed likely to fuel substantial USD inflation in real terms through the end of 2021."
Velocity-of-money and the M2 money supply weren't that relevant to the main story I wanted to tell, so I went into no more than superficial detail here.
- blueblisters 6y agoEven if inflation were to occur at the levels you anticipated, I would find it hard to justify crypto being a safe hedge against the dollar. Dollar backed productive assets are largely much safer.
- jerrymiller 6y agoI recommend that you listen to this: https://www.coindesk.com/podcasts/the-breakdown-with-nlw/breakdown-bitcoin-fud-dan-held https://www.coindesk.com/podcasts/the-breakdown-with-nlw/bre...
- simonebrunozzi 6y agoThanks for a great article. Wondering what would be the best way to follow your writings, given that you're currently anonymous.