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Because our government just printed a LOT of money. Look into what money supply does to inflation. More supply of money means things cost more. Interest rates g

Because our government just printed a LOT of money. Look into what money supply does to inflation. More supply of money means things cost more. Interest rates go down, and it’s better to not have cash but assets. I just loaded up on gold, platinum, silver, art, crypto, and real estate. Those will all fare better than cash or savings as hyperinflation grips the country.

incrudible 6y ago
> Because our government just printed a LOT of money. That may be true, but the broader money supply hasn't really changed much: https://tradingeconomics.com/united-states/money-supply-m2 https://tradingeconomics.com/united-states/money-supply-m2 It's also not really clear how it would. Banks aren't out there giving out loans like candy to everyone for anything. The little bit of helicopter money doesn't even cancel out the lack of spending due to COVID layoffs. You just can't have CPI inflation that way. > I just loaded up on gold, platinum, silver, art, crypto, and real estate. One of these is not like the others. > Those will all fare better than cash or savings as hyperinflation grips the country. You've probably listened too much to gold/silver salesmen who have been warning about the next crash and hyperinflation for many decades. In reality, inflation is arguably bullish for all these heavily indebted companies in the stock market. A market crash can be hedged against too, just look at how Universa Investments performed in 2020. How did gold perform though? Unimpressive.
- dlubarov 6y ago
  > broader money supply hasn't really changed much Did you zoom out? M2 money supply increased 25.6% in the past year. Might be easier to see at https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2
  - incrudible 6y ago
    A modest change, considering that M1 has almost doubled.
    - tradertef 6y ago
      What? Is 25% change in total money a modest change?
      - incrudible 6y ago
        In perspective, yes it is. In a normal year you might expect M2 increase by 5%. Last year was special, of course. People are acting as if hyperinflation was right around the corner because M1 just doubled, ignoring that M1 quadrupled in the ten years before 2020 and that it didn't cause hyperinflation then either.
        tradertef 6y ago
        So, we just print 5x normal amount (which is also a big why) and it is all good.
        incrudible 6y ago
        You can have a pandemic, or you can have liquidity crisis on top of a pandemic. Choose wisely.
        tradertef 6y ago
        Is that so? People have lived through pandemics when they were using gold as a medium of exchange. The pandemic is an excuse for printing money. I would prefer that debasing of fiat would not exist, i.e. there is only limited supply which can not be inflated arbitrarily.
evilos 6y ago
FYI they do not print money. The US fed gives banks money in exchange for collateral (US govt debt). The banks cannot spend this money, it has to sit there doing nothing. The banks do make a small amount of money from the assets they swapped for the money. Eventually the swap is reversed, and if the bank does not return the money then the fed keeps the collateral. The M2 has increased because interest rates are down (on purpose) and more money is being borrowed.

incrudible 6y ago

> Because our government just printed a LOT of money. That may be true, but the broader money supply hasn't really changed much: https://tradingeconomics.com/united-states/money-supply-m2 https://tradingeconomics.com/united-states/money-supply-m2 It's also not really clear how it would. Banks aren't out there giving out loans like candy to everyone for anything. The little bit of helicopter money doesn't even cancel out the lack of spending due to COVID layoffs. You just can't have CPI inflation that way. > I just loaded up on gold, platinum, silver, art, crypto, and real estate. One of these is not like the others. > Those will all fare better than cash or savings as hyperinflation grips the country. You've probably listened too much to gold/silver salesmen who have been warning about the next crash and hyperinflation for many decades. In reality, inflation is arguably bullish for all these heavily indebted companies in the stock market. A market crash can be hedged against too, just look at how Universa Investments performed in 2020. How did gold perform though? Unimpressive.

dlubarov 6y ago
> broader money supply hasn't really changed much Did you zoom out? M2 money supply increased 25.6% in the past year. Might be easier to see at https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2
- incrudible 6y ago
  A modest change, considering that M1 has almost doubled.
  - tradertef 6y ago
    What? Is 25% change in total money a modest change?
    - incrudible 6y ago
      In perspective, yes it is. In a normal year you might expect M2 increase by 5%. Last year was special, of course. People are acting as if hyperinflation was right around the corner because M1 just doubled, ignoring that M1 quadrupled in the ten years before 2020 and that it didn't cause hyperinflation then either.
      - tradertef 6y ago
        So, we just print 5x normal amount (which is also a big why) and it is all good.
        incrudible 6y ago
        You can have a pandemic, or you can have liquidity crisis on top of a pandemic. Choose wisely.
        tradertef 6y ago
        Is that so? People have lived through pandemics when they were using gold as a medium of exchange. The pandemic is an excuse for printing money. I would prefer that debasing of fiat would not exist, i.e. there is only limited supply which can not be inflated arbitrarily.

evilos 6y ago

FYI they do not print money. The US fed gives banks money in exchange for collateral (US govt debt). The banks cannot spend this money, it has to sit there doing nothing. The banks do make a small amount of money from the assets they swapped for the money. Eventually the swap is reversed, and if the bank does not return the money then the fed keeps the collateral. The M2 has increased because interest rates are down (on purpose) and more money is being borrowed.