/biz/ - Business & Finance

I don't know how anyone can still believe that retard that kept being posted by the guy thinking we were going into deflation and a golden dollar bull run. After the worst possible monetary news, the next day the 30 year yield is 3 bps higher than before the news and 15 bps higher than it was a week ago. The dollar didn't even rise enough for it to not be considered normal volatility.

There's been a few guys shilling the dollar milkshake theory here recently. You should read Alasdair Mcleod's latest article

"The error common to both is to misunderstand the underlying subjectivity of money. Money takes its value from the marginal value placed upon it relative to owning goods. If money is widely regarded as sound, an economising man is happy to hold a reserve of it, only exchanging it for goods and services when they are needed. This is the most important quality of metallic money, to which people have always returned when government money fails.

A further benefit, which state currencies lack, is that gold and silver as money are accepted everywhere, having the same values in New York, London, and Mumbai. With the exception of cross-border trade, investment, and perhaps longer-term strategic considerations, government currencies are generally restricted to national boundaries. Paper currencies are therefore vulnerable to changes in demand in the foreign exchanges in a way gold and silver are not; if the foreigners don’t like your currency, they will reduce their exposure by selling it, irrespective of fundamental considerations."

He talks about how the Wiemar inflation preceded it's monetary inflation, because foreigners (and nationals) front ran the Reichsbank into the forex market to protect themselves. So even if there is "deflationary pressures" in the US, you could see a collapse in forex (and domestic purchasing power) at the same time.

There's been a few guys shilling the dollar milkshake theory here recently. You should read Alasdair Mcleod's latest article

"The error common to both is to misunderstand the underlying subjectivity of money. Money takes its value from the marginal value placed upon it relative to owning goods. If money is widely regarded as sound, an economising man is happy to hold a reserve of it, only exchanging it for goods and services when they are needed. This is the most important quality of metallic money, to which people have always returned when government money fails.

A further benefit, which state currencies lack, is that gold and silver as money are accepted everywhere, having the same values in New York, London, and Mumbai. With the exception of cross-border trade, investment, and perhaps longer-term strategic considerations, government currencies are generally restricted to national boundaries. Paper currencies are therefore vulnerable to changes in demand in the foreign exchanges in a way gold and silver are not; if the foreigners don’t like your currency, they will reduce their exposure by selling it, irrespective of fundamental considerations."

He talks about how the Wiemar inflation preceded it's monetary inflation, because foreigners (and nationals) front ran the Reichsbank into the forex market to protect themselves. So even if there is "deflationary pressures" in the US, you could see a collapse in forex (and domestic purchasing power) at the same time.

Okay, I started watching this retard's video since I spent most of my quarantine today shitting on him. Stopped watching when he said that the fed was originally implemented to quell inflation. I don't know how you get that wrong.

The guy goes on and on about QE actually reducing the liquidity in the system, but total bank credit is exactly where it was in May and bank loans are nearly 500 billion higher than they were before QE, which he claims would actually be decreased by QE.