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Yes, we're in a bubble, we've been in a bubble for at least the last 10 years. But the reason why the bubble still hasn't popped is because reserve banks have b
by cryptica 5y ago
Yes, we're in a bubble, we've been in a bubble for at least the last 10 years.
But the reason why the bubble still hasn't popped is because reserve banks have been propping up the stock market by creating massive amounts of new currency. Stock prices are denominated in fiat currencies so when you talk about a 'crash' you mean relative to fiat currencies... If the value of fiat drops faster than the value of stocks, you won't notice that a crash is happening; it might look like it's all going up.
It's basically similar to what happens in countries which experience hyperinflation; the stocks all seem to be going up relative to the national fiat currency when in reality they are dropping relative to foreign fiat...
But the difference is that because the USD is the world's reserve currency, there is no other fiat against which to measure the loss of value of the USD... So the loss of value is hidden; it will only be revealed when people start selling their stocks and buying real assets with the money; this will drive up consumer prices. The crash will only be experienced as increases consumer prices and possibly also increases in the price of cryptocurrencies. It may also explain why inflation is strongest in the US.