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Or we’re just experiencing inflation after printing trillions of dollars overnight.

by nostromo 5y ago

imtringued 5y ago
Mostly central bank reserve "dollars", the kind that mortal consumers can't use to buy groceries.
- nine_zeros 5y ago
  The additional reserve dollars allow banks to offer more loans at lower interest rates and buy other assets (mbs) that they normally wouldn't buy. When banks purchase these assets, cash is handed to entities selling these assets. Since there's A LOT of money to be loaned, banks are bidding against each other on such assets and to hand out loans asap. This is causing inflation. And yes, it's only hidden because you are rich. Ask someone making $30k a year how they are feeling about the "minor" inflation
- pgwhalen 5y ago
  For this reason, arguably it is the treasury that truly creates money these days, especially with a great excess of reserves. And there has certainly been plenty of “treasury printing” in the last year.
beamatronic 5y ago
I see it mostly going into high-end real estate. If you ever wanted that little place in Carmel, better get it now.
ineedasername 5y ago
Not quite: At least in the US, CPI increases are lead by gasoline, which drives up the cost of everything else. And fuels prices are up due quite a bit because demand has increased as society reopened while a whole bunch of oil producers went bankrupt when society shutdown and no one was going anywhere. The other leader in CPI is from cars, which also have a supply-side bottleneck unrelated to government bailouts. Supply chain issues in other areas are also contributing to price increases. I'm not saying that government money isn't having any impact, but if you look at where the price increases dominate, there are reasons that explain price increases much more fully.
syshum 5y ago
The inflation we see today is supply chain issues... The Money Printing inflation is coming. The inflation from money printing today is almost all in Stock market right now as people took a lot of the money and either saved it (which institutions then invested it) , or invested it, This can be seen in the Money supply charts... Watch though, as the supply chain issues get resolved over the next 12-24 months, people will start spending that Printed money, then you will see a second more sustained wave of inflation...

Or we’re just experiencing inflation after printing trillions of dollars overnight.

imtringued 5y ago

Mostly central bank reserve "dollars", the kind that mortal consumers can't use to buy groceries.

nine_zeros 5y ago
The additional reserve dollars allow banks to offer more loans at lower interest rates and buy other assets (mbs) that they normally wouldn't buy. When banks purchase these assets, cash is handed to entities selling these assets. Since there's A LOT of money to be loaned, banks are bidding against each other on such assets and to hand out loans asap. This is causing inflation. And yes, it's only hidden because you are rich. Ask someone making $30k a year how they are feeling about the "minor" inflation
pgwhalen 5y ago
For this reason, arguably it is the treasury that truly creates money these days, especially with a great excess of reserves. And there has certainly been plenty of “treasury printing” in the last year.

beamatronic 5y ago

I see it mostly going into high-end real estate. If you ever wanted that little place in Carmel, better get it now.

ineedasername 5y ago

Not quite: At least in the US, CPI increases are lead by gasoline, which drives up the cost of everything else. And fuels prices are up due quite a bit because demand has increased as society reopened while a whole bunch of oil producers went bankrupt when society shutdown and no one was going anywhere. The other leader in CPI is from cars, which also have a supply-side bottleneck unrelated to government bailouts. Supply chain issues in other areas are also contributing to price increases. I'm not saying that government money isn't having any impact, but if you look at where the price increases dominate, there are reasons that explain price increases much more fully.

syshum 5y ago

The inflation we see today is supply chain issues... The Money Printing inflation is coming. The inflation from money printing today is almost all in Stock market right now as people took a lot of the money and either saved it (which institutions then invested it) , or invested it, This can be seen in the Money supply charts... Watch though, as the supply chain issues get resolved over the next 12-24 months, people will start spending that Printed money, then you will see a second more sustained wave of inflation...