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I like Krugman's 2013 piece on Bitcoin too. "The practical misconception here — and it’s a big one — is the notion that we live in an era of wildly irresponsib
by nostromo 4y ago
I like Krugman's 2013 piece on Bitcoin too.
"The practical misconception here — and it’s a big one — is the notion that we live in an era of wildly irresponsible money printing, with runaway inflation just around the corner. It’s true that the Federal Reserve and other central banks have greatly expanded their balance sheets — but they’ve done that explicitly as a temporary measure in response to economic crisis."
That temporary measure turned out to be not so temporary! And in fact it was only about to accelerate dramatically. And it turns out inflation is still a concern worth taking seriously.
I'm not a Bitcoin person, but even after Bitcoin's current crash, if you had done the opposite of what Krugman suggested in 2013 and bought Bitcoin, your investment would be up well over 20,000%.
https://www.nytimes.com/2013/04/15/opinion/krugman-the-antisocial-network.html https://www.nytimes.com/2013/04/15/opinion/krugman-the-antis...
- nullfield 4y agoClippy You wrote “temporary”. Did you mean “transient”?
- throw0101a 4y ago> That temporary measure turned out to be not so temporary! Actually it was temporary. The Fed bought things up and then stopped, and then started reducing assets: * https://fred.stlouisfed.org/series/WALCL https://fred.stlouisfed.org/series/WALCL And then COVID hit. They're reducing assets now (quantitative tightening). Odd Lots had a recent episode on this, "What the Fed's Big Balance Sheet Unwind Means for Markets": * https://play.acast.com/s/oddlots/6edf697f-abc7-4960-8060-aeda014e6d11 https://play.acast.com/s/oddlots/6edf697f-abc7-4960-8060-aed... * https://podcasts.apple.com/gb/podcast/what-the-feds-big-balance-sheet-unwind-means-for-markets/id1056200096?i=1000571066254 https://podcasts.apple.com/gb/podcast/what-the-feds-big-bala...