/biz/ - Business & Finance

>>30180710

>>22751097
>>22753310

>>What you’re saying is that this is truly the end for the fiat system of currency. You think that major global banks and governments, which are obviously intertwined, are never going to be able to create a speculative type of fiat economy ever again?

Yes. This is _the_ end of unbacked paper currency. We only have an unbacked paper-currency system right now because of a unique historical circumstance. The U. S. was the greatest survivor of the worst war in history, people fled to its currency, wrongly thinking that the dollar was as good as gold. The U. S. pulled the rug out in 1971; and, when the dollar collapses, and it _will_ collapse, because the debt trap is inextricable, we _must_ go back to another world reserve currency which is based on something real. Everybody knows this, this is why China is buying commodities, and every central bank is hoarding gold. This period in human history will be looked upon as a bizarre historical anomaly, just like the period of John Law in France.

>>22744740

>>Anon, we all know deflation will continue for ever. UBI, MMT, and negative interest rates are all crazy talk that will never happen, govts will never get the inflation they want. Instead, they'll be OK with deflation and sit on their hands as the boomer's retirement evaporates and federal debt becomes serviceable.

This is absolutely impossible. First of all, the CPI is a lie. John Williams' ShadowStats + the Chapwood Index put real inflation 10 percent per annum. The Fed pretend as if they want inflation when inflation is really out of control; it's a headfake. Secondly, the Fed is caught in a debt-trap from which there is no escape. They tried to yields go up in late 2018; when yields hit a nominal 3%, the Dow immediately crashed 20%, and they were forced to re-start Q. E. again. The market was already going to crash again this year without further liquidity; the coronavirus stuff was simply an excuse to begin Q. E. infinity. Yields are now deeply negative, just as they were in the 70s and 80s, and they can never go positive again. Only a fool would buy a negatively-yielding bond; a bond market crash is inevitable. The more the Fed monetizes the debt, the more deeply negative yields go, the less attractive treasuries become to foreign investors, ad infinitum, in a vicious circle, until the Fed becomes the only buyer. They can't let yields go up again, it would crash stocks by 95% and wipe out every social programme in the U. S.; they must simply print and print and print until the dollar has no value, and foreigners dump it once and for all. Every country on earth is already racing to dump treasuries and hoard commodities as fast as it reasonably can.

>>22686888

Central banks will try to digitize their currencies, in order to exert greater control over their citizens; but, when the dollar falls, the only world-reserve currency left is gold. Paper won't have value any more, except insofar as there are tangible things which back it. Hence why central banks are hoarding gold, and China is hoarding commodities. Digital currencies will be a means of transaction, not a store of value.

>>22685440

Real yields are deeply negative, and can never go positive again. The bankers tried to let yields go even to a nominal 3% in late 2018, it crashed the market. Q. E. had to start again. The U. S. is caught in a debt-trap from which there is no escape. The Fed will soon be monetizing literally everything. Gold has been soaring since then and central banks have been hoarding it as never before. China is dumping treasuries and buying as many commodities as it can get. When the system collapses people will go to PMs as one of the only safe havens remaining. Bond market market cap is 100+ trillion, annual investable silver supply = only 2.5 billion; as fiat crashes towards zero, silver could revert to its inflation-adjusted $600 ATH, or even go higher, and mining stocks could go up 1000s of times.