4 ms·

I was not impressed with the article despite his status as a professor. For one example, he either seemed to have a very basic understanding of price elasticity

by 300bps 6y ago

I was not impressed with the article despite his status as a professor. For one example, he either seemed to have a very basic understanding of price elasticity of supply or he dumbed the article down to the point of being not possible to understand what his argument is. He also seems to not truly understand the scope of quantitative easing that has gone on. The $1.9 trillion in stimulus just passed in the US is a drop in the bucket compared to the Federal Reserve’s unprecedented $7 trillion balance sheet: https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren... And setting the bank reserve rate to 0% from its normal 10%. There are literally tens of trillions of dollars of stimulus that have been created. This money is finding its way into everything except ironically the items that are tracked by CPI. When a crypto currency created as a joke reaches a market cap > $7.5 billion you may have an inflationary bubble on your hands. https://coinmarketcap.com/currencies/dogecoin/ https://coinmarketcap.com/currencies/dogecoin/

Majromax 6y ago
> The $1.9 trillion in stimulus just passed in the US is a drop in the bucket compared to the Federal Reserve’s unprecedented $7 trillion balance sheet: Not at all. The Fed's balance sheet expansion is widely believed to be ultimately temporary, to be wound down over time once conditions normalize. Moreover, its expansion has all taken the form of collateralized loans, which is why the linked graph is of the asset side of a balance sheet. Fiscal policy, however, does not create any such assets owned by the Treasury. The required deficit spending is fundamentally unsecured, uncollateralized credit, even though the US federal government has an excellent credit rating. > This money is finding its way into everything except ironically the items that are tracked by CPI. You could also look at the GDP price deflator (https://fred.stlouisfed.org/series/A191RI1Q225SBEA https://fred.stlouisfed.org/series/A191RI1Q225SBEA), which doesn't have a basket-of-goods problem, and see similar trends. > When a crypto currency created as a joke reaches a market cap > $7.5 billion you may have an inflationary bubble on your hands. No, it's a speculative bubble. Very different.
moralsupply 6y ago
Dogecoin was created as a joke, but as money Doge is a lot more sound than any fiat currencies out there. It's not that Doge is a bubble. The bubble is the US Dollar. (insert Doge meme image here)
imtringued 6y ago
>This money is finding its way into everything except ironically the items that are tracked by CPI. You do know that the sole goal of the fed's monetary expansion is to raise CPI inflation? So by that measure the Fed is an absolute failure. It never created inflation.

by 300bps 6y ago

Majromax 6y ago

> The $1.9 trillion in stimulus just passed in the US is a drop in the bucket compared to the Federal Reserve’s unprecedented $7 trillion balance sheet: Not at all. The Fed's balance sheet expansion is widely believed to be ultimately temporary, to be wound down over time once conditions normalize. Moreover, its expansion has all taken the form of collateralized loans, which is why the linked graph is of the asset side of a balance sheet. Fiscal policy, however, does not create any such assets owned by the Treasury. The required deficit spending is fundamentally unsecured, uncollateralized credit, even though the US federal government has an excellent credit rating. > This money is finding its way into everything except ironically the items that are tracked by CPI. You could also look at the GDP price deflator (https://fred.stlouisfed.org/series/A191RI1Q225SBEA https://fred.stlouisfed.org/series/A191RI1Q225SBEA), which doesn't have a basket-of-goods problem, and see similar trends. > When a crypto currency created as a joke reaches a market cap > $7.5 billion you may have an inflationary bubble on your hands. No, it's a speculative bubble. Very different.

moralsupply 6y ago

Dogecoin was created as a joke, but as money Doge is a lot more sound than any fiat currencies out there. It's not that Doge is a bubble. The bubble is the US Dollar. (insert Doge meme image here)

imtringued 6y ago

>This money is finding its way into everything except ironically the items that are tracked by CPI. You do know that the sole goal of the fed's monetary expansion is to raise CPI inflation? So by that measure the Fed is an absolute failure. It never created inflation.