4 ms·

>>Even though there was a lot of money supply creation in the US in the 2010s, where was negligible inflation (folks were actually complaining it was too low).

>>Even though there was a lot of money supply creation in the US in the 2010s, where was negligible inflation (folks were actually complaining it was too low). Why was that? If you look instead of Price inflation, and instead shift of Market Inflation you will see most of the money supply creation directly lead to stock price inflation and laregely lead to a huge bubble in the stock market (that is largely still there) where basic fundmentals of a company did not matter to the stock prices. You see the rise of alot of highly unprofitable companies which under normal conditions would mean lowering of their stock value but instead their stocks were still going you QE and other fed programs where designed to ensure market inflation, and that is where most of that money supply went, not to mainstreet which is where you would see CPI increases Come to COVID and the money supply creation was done in direct transfers to Mainstreet, and almost immediately we seed CPI go nuts...

throw0101a 3y ago
> If you look instead of Price inflation, and instead shift of Market Inflation you will see most of the money supply creation directly lead to stock price inflation and laregely lead to a huge bubble in the stock market (that is largely still there) where basic fundmentals of a company did not matter to the stock prices. There was (so-called) 'market inflation' in the 1920s when the US was still on the gold standard and so the money supply was fixed. See also: * https://en.wikipedia.org/wiki/Panic_of_1873 https://en.wikipedia.org/wiki/Panic_of_1873 And also: * https://en.wikipedia.org/wiki/Canal_Mania https://en.wikipedia.org/wiki/Canal_Mania * https://en.wikipedia.org/wiki/Railway_Mania https://en.wikipedia.org/wiki/Railway_Mania The supply of money has no relation to the existence of stock bubbles.

throw0101a 3y ago

> If you look instead of Price inflation, and instead shift of Market Inflation you will see most of the money supply creation directly lead to stock price inflation and laregely lead to a huge bubble in the stock market (that is largely still there) where basic fundmentals of a company did not matter to the stock prices. There was (so-called) 'market inflation' in the 1920s when the US was still on the gold standard and so the money supply was fixed. See also: * https://en.wikipedia.org/wiki/Panic_of_1873 https://en.wikipedia.org/wiki/Panic_of_1873 And also: * https://en.wikipedia.org/wiki/Canal_Mania https://en.wikipedia.org/wiki/Canal_Mania * https://en.wikipedia.org/wiki/Railway_Mania https://en.wikipedia.org/wiki/Railway_Mania The supply of money has no relation to the existence of stock bubbles.