5 ms·
Bitcoin happens to be a handy money sink. Governments did nothing to deter the real estate bubble because it helped/helps to sink excess liquidity. (It is long
by epx 6y ago
Bitcoin happens to be a handy money sink. Governments did nothing to deter the real estate bubble because it helped/helps to sink excess liquidity. (It is long debated that inflation rates are bogus because they don’t take the price increase of houses into consideration). For me, if this Bitcoin craze helps to keep low the prices of things I want, I am happy.
- listenallyall 6y agowhat's cheap? food? nope. gasoline? nope. lumber or housing materials? definitely nope. a decent computer? nope. financial assets? nope. healthcare? nope. tv set? ok sure.
- twelve40 6y agostock (sp500): one year ago: 2500. Today: 4000. retail gas in US: one year ago: 2.41. Today: 2.86. So yes, compared to some major asset classes that are omitted from consumer inflation calculations, gas is "cheap".
- listenallyall 6y agoa 20% annual price increase = "cheap" to you? did your salary increase 20% since March 2020? didn't think so.
- twelve40 6y agoSeems like you completely ignored this part: "compared to some major asset classes that are omitted from consumer inflation calculations" sp500 going from 2500 to 4000 in the same year is 60%. Yes, a 20% price hike compared to a 60% price hike makes for a cheaper outcome in the end, when gas is "compared to some major asset classes", in my example the US stocks. Why is this so difficult?
- listenallyall 6y agoI ignored it because it is irrelevant. People's purchasing power isn't based on the stock market index, it is based on their income. Even a retiree who is net withdrawing... a 60% upwards move in the stock market doesn't mean that retiree has 60% more purchasing power this year. Use some of your purchasing power on an economics book.