/biz/ - Business & Finance

As a homosexual man who exclusively enjoys being the receptive partner during sex, the actual bottom is me.

>>49748202

Please stop posting disclose.tv twitter bullshit.
They are wrong about almost fucking everything.

>>49746622

>because jerome is removing all usd liquidity he can

No he's not.
Once you add to the money supply, that money is out there forever. You can't un-print money.
What he's attempting to do is slow the rate at which liquidity is being added to the economy, and he's failing.
Not because he's taking the wrong actions, but because this is pragmatically impossible.
The Fed printed something like 60% of all M1/cash in existence, and banks no longer have reserve requirements, meaning (simply put) that they don't have to actually have any money to lend money out.

All you need to look at is the Fed Repo and Overnight Reverse Repo markets to see that banks are awash in, quite literally, more liquidity than they know what to do with.
Reverse Repo (that the Fed uses to mop up extra cash banks have on hand on a daily basis in exchange for a small interest rate) has risen from minimal levels to over $2T in the last year.
Repo, its counterpart used to inject liquidity, has gone completely unreported by the Fed over that same period, so there is no way to tell if the net flow of liquidity is negative or positive.

My own hypothesis is that there is an enormous amount of money waiting "behind the dam", floating between the Fed and private banks.
Their under a loose agreement not to dump it back into the broader economy, but once the asset bubble pops, they will all have enormous incentive to swoop in and deploy it buying everything up on the cheap.
Cartels never work long-term.

>>49604107

No it isn't. To them it's rational.
Consumer credit facility knows that if you have cash, you can spend cash or park it somewhere before they can sue you for non-payment and recover it.
W-2 wages or a salary is future cashflow. If you don't pay rent, they can garnish it without you ever touching it.
Larger rental companies want this because it simplifies the process.

Also, consumer credit facility flows downward from banks, and banks don't want you owning equity in things.
You owning things makes you pesky; you can sever you relationship with them at any time.
They want you borrowing money for the things you need and paying interest on it.
In the aggregate, they want people reliant on them.

>>49511861

Cool, I would like to redeem my shares of this company's balance sheet for cash to compensate for inflation.
Where and how do I sell them?

Clean water
Non-perishable food
Low-mileage vehicles
Arable land
Working firearms
Ammunition
Liquor

>>49510880

You can't own shit in the middle because there isn't anything in the middle.
ZIRP policy means no guaranteed single-digit returns for minimal risk.
There's too much cash in the economy and the market for passive investment is too crowded.

Anything that seems like it falls in that category is fake.

>>49507545
>>49510088

Literally zero fucking chance of deflation in the next 3 years.
Fed has printed 40% of all cash in existence in the last 26 months.
Repo market activity has jumped 200%, allowing banks basically free access to credit ZIRP facility if they need liquidity.
Those same banks no longer have reserve requirements. They don't have to have money to lend money.
And every time another asset bubble pops and a sell-off occurs, more and more cash currently sequestered from the market by banks and funds is poured back into circulation.

I literally don't think you could draw me a diagram of how USD would deflate if you tried.