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I’m not the person you asked, but your previous post mentioned constant, predictable inflation and threw out 2% as an example. I understand that was just a numb
by eric-hu 4y ago
I’m not the person you asked, but your previous post mentioned constant, predictable inflation and threw out 2% as an example. I understand that was just a number for illustrative purposes, but the US performances large amounts of quantitative easing twice in the last 20 years. I could probably find a 4 year window in the last 20 years when it didn’t, but the Covid and 2009 QE events increased the m2 money supply so much that it would be silly to ignore.
- hiq 4y ago> that was just a number for illustrative purposes It's more of an ideal, e.g. the ECB targets this. In practice there's a margin of error, the question is how big it is. Once this error (for the currency you use, e.g. USD I assume, given your comment) and the volatility of BTC are close enough, we can consider BTC as competitive as a currency. Until then it's not.
- eric-hu 4y agoWhile I’m bullish on BTC, my personal spending choices fully agree with you as I don’t perform any spending transactions with it. That said, I’m watching these developments closely because the M2 growth from QE does alarm me, as someone whose life savings were earned in USD. Even hedging inflation with investment in the U.S. and global stock markets seems to share the same risk of poor USD monetary policy.
- bubbleRefuge 4y agoThis is bogus. there is no historical correlation between M2 money supply and inflation.