/biz/ - Business & Finance

>>29902284
We all know about the Federal Reserve increasing the bank reserves by orders of magnitude since the corona virus and the repo operations in 2019. Many people see that the M2 money supply has seemingly gone parabolic. What most people are not taking into consideration is the velocity of money. The velocity of money has plummeted as well and has been on a decreasing trend since the 2008 financial crisis. Inflation isn't just an increase in the cost of goods and services but instead an increase in the cost of goods and services with an increase in money velocity AND an increase in money supply. For years the FED has been attempting to increase the velocity of money by lowering interest rates and lowering reserve requirements but the dollar just isn't moving like it once was. The reason why goods and services have increased in price do not have to do with inflation but have to do with the cost it takes to get around these government imposed restrictions nationally and internationally.

Those are not the only reasons why this USD inflation talk is moot. Other governments are printing their currencies at blistering speeds. Canada is about to hyperinflate and what are Canadians going to switch to? Assets and dollars. Globally speaking, corporations, Joe Schmoes and governments use the dollar. You can go anywhere and the dollar is accepted. When their own currencies hyperinflate they will seek haven in the dollar and hard assets. America will be the LAST fiat to hyperinflate and only then will Americans feel the hyperinflation and they will feel it magnitudes higher than any other nation before.