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In general, prices are not pegged to inflation. Inflation is a change in the price level, but prices also change for reasons that have nothing to do with chang
by lottin 5y ago
In general, prices are not pegged to inflation. Inflation is a change in the price level, but prices also change for reasons that have nothing to do with changes in the price level, e.g. in the case of wages, the supply and demand for labour.
- landemva 5y agoPrices also change due to manipulation. In 1998 Alan Greenspan testified to Congress that central banks lease paper gold to suppress the gold price. '... central banks stand ready to lease gold in increasing quantities ...' https://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm https://www.federalreserve.gov/boarddocs/testimony/1998/1998... It is law that Treasury is allowed to secretly manipulate prices of cuurencies, stocks, bonds, and commodities. https://home.treasury.gov/policy-issues/international/exchange-stabilization-fund https://home.treasury.gov/policy-issues/international/exchan... It's rigged and the chance of the insiders not trading for their own personal accounts is approximately zero. Occasionally the commoners get a few scraps like WSB on gamestonk in early 2021.