/biz/ - Business & Finance

>>17998199
If dollar is so strong, isn’t that a good thing if you have a dollar?

by buying bitcoin

>>17998211
Do you physicly have dollars? If banks shut down you can have problem.

>>17998226
is that what happen during the spanish flu too

>>17998240
It's what happened during great Depression. Deflation.

>>17998211
If you have a loan (most retards do and are generally overextended into credit) and the dollar deflates, you will eventually earn less money as the dollar becomes worth more, but your loan will remain the same total amount. This wouldn't be a problem if it was limited to small amounts of retail credit. It would hurt, but could be mitigated or just facetanked. The problem is that the institutions are also neck deep in debt because all the businesses and financial institutions are completely and utterly overextended into lines of credit they have no business using, leveraging every percentile of their business and assets into taking out bigass loans so they can use that loan money to make .0001% more money than the APR on the loan will cost. And they'll take out as many of these loans as they can to do this as much as they can because if you can take a loan out and invest it in something that returns more than the interest, you're basically getting free money (from your perspective).
Even McDonalds has something like 57 billion dollars of debt from doing this. McD. The fucking moneyprinter of fast food, is up to their eyes in debt, because taking it out to expand unsustainably had a very marginally better return than expanding with their own money.

>>17998294
Well put. Lower your debt, save cash, work extra hours, hope it won't last long.

>>17998320
Honestly, if we make it through this, leverage should be considered as heinous as proper assrape 900% APR usury. No institution should have such large creditlines to put themselves in such a situation.
Also, I'm just saying, firearms virtually never depreciate in value. If you chart out any given gun it's probably gonna hold better than even precious metals. Especially if you get something mildly collectible or no longer imported. To say nothing of the utility.

>>17998335
I think tools might be a good thing too.
Not best but they are always worth something and can sit in a corner for decades.

>>17998199
the US dollar can't deflate beyond a minor deflation, hyper-deflation would be significantly worse for the US economy than hyper-inflation.
If it ever came down to it, the US would just print money and market buy various commodities or helicopter money, until the dollar stop deflating.

>>17998294
Oh, and because the financial institutions have extended all these lines of credit, using the money deposited with them whether by you or by larger companies, it means the banks don't actually have any physical cash on hand. They basically have a pile of IOUs that they swear are worth cash because the guys who wrote the IOUs are totally gonna pay you back, but the bank can't give out more than a very small fraction of the amount that's been deposited with them.
So now if someone (another institution) needs a large amount of cash from the bank, they might be shit out of luck. This is why we're having all these t-bond repo swaps. The banks own a shitload of Treasury Bonds, which are basically just long term IOUs from the government, but have very little liquid cash. So the Federal Reserve says okay, hand over the IOUs overnight as collateral, and I'll loan you just about that much money in actual real dollars overnight. If you default I keep my IOUs and rip them up and eliminate my debt, if you don't you can have the IOUs back and I get all the money I gave you plus interest, so the banks have an injection of LIQUID funds that they can use for whatever kind of obligation they may need it for so they don't become insolvent.
It's scummery. Imagine if you let me hold onto your gameboy, and I loaned it to the kid down the street who swore up and down he was going to pay me $5 to keep it for an hour. It's your fucking gameboy but I'm making the decisions about who can be trusted to both return the gameboy and pay me a fee for the use of the gameboy. And when I get that fee, based on modern checking and savings account interest rates, when I get that $5, you can have half a fucking cent. For risking your entire fucking gameboy without any say in who is trustworthy enough for you to risk an entire gameboy for .05c return.

>>17998398
They are already pumping trillions a day with no result. What more can they do? Whole world is going to get currency reset.

>>17998407
What should people with mortgage do?

>>17998407
>>17998411
The trillions of dollars are in repo swaps. If you conflated the treasury bonds to be equivalent to dollars you could say nothing is really being printed, exactly. Since the bonds were bought with however much cash which caused that much deflation in tying the money up in the bonds you can argue that them coming off the market is just about 1 to 1.
(Unless I've misunderstood the entire repo swap deal.)
>>17998427
If you want to bet on deflation happening, badly, for sure, do everything and anything you can to pay it off or get out from under it.

Imagine talking about deflation while we’re going straight into hyperinflation.

>>17998451
Sure, hiperinflation will just kick in, everyone will pay off their debt and we will continue to pump.
That's how life works.
No one will bankrupt, everthing will be forgotten and handed over for cheap.

>>17998407
so when does this all die?

>>17998433
>>17998407
>>17998335

This is what stupid fucking finance autists think everyone else is thinking. The average normie is going to realize they can't make end's meat so they'll just stop paying on whatever loan applies. Rent and food matter the most. Credit card debt? Fuck 'em. Auto loan? If they have the spare change for it then sure, but if not then fuck the auto loan and hide the car. I expect being a repo tow truck driver to be a hazardous profession in really hard times. Fuck my student loans, fuck my medical bills, fuck it all to hell I walk away from all that shit.

That attitude describes 70% of Americans or more during a Great Depression, that's just my guess depending on how bad things get and I think they'll get pretty bad.

>>17998566
Nah bro, I know that's what everyone is thinking. Once it gets harder to pay the loans they'll default and all the institutions who own their debt will melt like turds in the sun. If I had a shitpile of debt I could default on without getting evicted and it popped off I'd definitely just let it fucking go. It'll go to collections, probably in less than 6 months, and you can talk the retard on the other end of the line who bought your debt on an excel sheet into letting you pay $20 a month on 20k in loans IF you even give a fuck then instead of just deciding to continue to ignore it. It's an extra big landmine for financial institutions BECAUSE the average retail creditor will just go "fuck it lmao" once deflation makes their loans too hard to pay back. To say fucking nothing of how shitty about like 80% of auto loans are at the moment. 100% agree with you.

>>17998199
JUST BE AMERICAN!

Kek.

No seriously.... buy UND. Unification. AKA the United Nations Dollar. Aside from BTC and Tezos, it's the only inflation hedge you need.

>>17998605
How much can dollar value increase? 50%? More?

>>17998605
keep posting cunt, I find your thoughts very interesting

>>17998764
We are still waiting for dead cat bounce on dow, and another 30-60% down.
Bubbles are bursting 90% down.
On a way there you should save up as much as you can, work extra jobs, sell shit you don't need.
Once we bottom it's stocks time. Look for dividends around 10%.

>>17998790
>still waiting for dead cat bounce on dow
Like the one in ur pic between 2000 and 2001 that lasted months?

>>17998211
Brrrrrr

>>17998841
u guys on chapotrapohouse rading /biz/ have actually come up with some pretty funny brrrr memes.

unfortunately the cure is here and your movement is going back in cold storage for another hundred years.

gg.

>>17998764
That's all I really got, copkiller. If you wanted to dumb it down for the normalfags in your life, you can basically just explain that everybody is overleveraged on everything. Everybody's solvency relies on the solvency of the debts they own, which are owned by people who are using that credit to leveragemaxx and make pennies more than the interest rate will cost them. It's not that the people taking the loans out are taking a big risk, they're really playing it pretty safe if they're a big company that's relatively certain of their ability to pay it back. That bigass debt of mcdonalds probably won't even be a problem for them as long as they've spent the credit wisely and not on unsustainable shit that won't pay out. The problem is the banks aren't just loaning this shit to golden A-plus gang niggas like mcdonalds, they're extending lines of credit to people who have absolutely no chance to pay it off if what they've spent the loans on don't pay off. If their investments or enterprises they've used this credit for fails, they will default on everything, and now their loan is fucking worthless, so every derivative that loan is a part of becomes less valuable, and now all the (your) money deposited in the bank isn't even backed by a fucking IOU. The bank's burned it into nothing by loaning it to retards and failed to get it back. The kid I loaned your gameboy to moved away that day and now not only do I not have YOUR gameboy, I don't have the fucking $5 I was supposed to get. Now I -have- to give you a fucking gameboy back that I don't have. What do I do? I get a gameboy from someone else to give to you and hope they don't ask for their gameboy back any time soon. Someone deposits with me and now I have enough liquidity for you to withdraw. But not enough for both of you (everyone) to withdraw.

>>17998888
checked

>>17998411
They can literally just start market selling dollars, which they will do before the end of the week, if not today

>>17998294
>Even McDonalds
Not my chicken nuggies!!!!!!!
Nnnoooooo!!
@_@ this has to stop
save our McDs

>>17998199
>How do you plan to not get bankrupt before hiperinflation hits next year?

I already am

>>17998888
Nice digits. I hope some anons will profit from this thread.

>>17998888
thanks man

>>17998888
checked based gameboy poster

Toasting in a beautiful bread
I’m heavy cash position now after never getting anywhere for years
Is this my chance? Can I turn $25k into a million by next year? Or are we just looking at boomer returns for the next 10yrs after trend reversal

>>17998888
>>17998896
>>17998897
>>17998924
>>17998981
>>17998955
>>17999002

you and all your alt IPs

>>17999034
Take your meds
yawn I'm feeling sleepy guys think I'll GO TO SLEEP NOW... see you when I'm done SLEEPING. YAWN

Thank you, based Covid for this opportunity to leave a mediocre life.
I don’t want cars or shiny things.
I just want to never have to suck a bosses dick again just to keep my bank paid so I can keep a house
My utopia consists of a paid for 40 acre farm over a flood plane and harvesting my own crops to eat. I just want true FREEDOM from this hedonist narcissistic world we live in

>>17998199
>before hiperinflation hits next year
you mean hyperdeflation?

>>17999052
City guys always thinks farming is so relaxing roflmao

We are at the bottom of how bad deflation will get right now. The central banks will simply not allow deflation to occur, and they can do this simply by market selling dollars for other fiat currencies and sending neetbux to everyone. More QE, etc...

Anyone sitting in cash right now expecting this trend to continue is badly underestimating the power of central banks to avoid this scenario.

Just think for a moment: let’s say dollar deflation continues on this path and explodes: what financial institutions world wide will remain solvent? Virtually none. Civilization will implode as we know it. You shouldn’t be hoarding dollars if you believe deflation will get worse: you should be training with a local militia

Central banks will simply not allow it to happen, and they can do it easily by market selling dollars. A new plaza accord is coming within days. Buy gold and silver now: this is the bottom.

>>17998407
.5c, .05c.... IM ONTO YOU.

>>17999114
Seems like hedgies agree with me btw. This was posted 5 min ago

>>17999100
I’m rural
And I know it’s a lot of work I created my own garden only 20sqft worth. But it’s a hell of a lot better than kneeling and sucking of mr shekelburg on the daily just to make a decent wage. I’m tired of being told what to do, being told I’m wrong, being told no to time off requests. I’d rather dig in the dirt for my own benefit than continue to make the Jews richer through my spent energy.

>>17998605
>once deflation makes their loans too hard to pay back

this is just for the US dollar, right? what do you see happening to other currencies?

>>17999100
kek they do. pure bucolic fantasy

>>17999143
This anon
>>17999114
is right that deflation simply will not be allowed to occur and is very simply defeated with lmao helicopter money or whatever other strat governments care to take. The issue of the loans going to tits remains. This will still cause an insane liquidity crisis and total failure of many financial institutions in the US once the economic impact of this shutdown and the numerous layoffs across the workforce strike. I don't really know what this will mean for other currencies but some other anon is probably smart enough to provide good conjecture. It won't be good.

>>17999114
Ok, so what do you suggest us cash-heavy ppl do? I’ve thought of guns, gold, silver etc but nothing seems like it will hold. It’s almost like I should just pay down my house but then again I’m not very financially literate so idk. My financial advisor tells me to buy stocks now so I stopped responding to her calls.

>>17999162
Not unless you have no desire or need to sell your crops. Obviously it takes some dirt work but you get to sit on your ass more than not in a small self sustaining operation.

blockchain-based decentralized currency is the best solution for this problem, there will be a requirement of decentralized internet in future which would be secure, maintain privacy & restriction-free, one of the firms working on this technology is Tachyon protocol they have excellent internet service which is powered by the V system & X-VPN.

>>17999178
Gold and silver idiot.

>>17999290
If deflation hit and you don't have cash you loose everything and land on a street for years.
If hiperinflation hits and you have cash you loose it.

Solution:
Hold enought cash to pay bills, put rest in gold.

>>17999327
The POINT OF MY POST IDIOT is that If deflation hits, society will instantly collapse 1929 style but worse. It will NOT be allowed to happen.

>>17999290
Are you simply shilling wealth conservation or are you assuming gold will 5x like it did during the 2008 drama?

>>17999357
FED is printing trillion a day and it does nothing, what more can they do? Print trillion every hour?

>>17999401
They can openly devalue the dollar on global markets. Begin open market operations and just mass sell dollars in euros, yen, pounds, etc...

In fact they’ll probably do it tonight.

>>17999437
Why would anyone buy it now. Countries walk away from dollar. Petrodollars are on the way out.

>>17999489
Kek. The world is literally BEGGING the fed for dollars. EVERYONE is short dollars

Are you even awake right now retard?

>>17999139
Yeah i see your point. But most farmers have to suck up to buyers, banks, land owners etc anyhow. Just growing your own food wont help you when you need to pay for gas, vet services, doctors, lawyers etc etc

>>17998611
I got me a bag of this and some Gold. UND is unironically a hedge.

>>17999114
>hoarding dollars if you believe deflation will get worse: you should be training with a local militia


BASED

>>17999437
As if euro's (and other currencies) aren't printed.

>>17999505
You can alway run a homestead and not pay banks. Run for no profit, just food on your plate, and do odd jobs on a side.

>>17999114
This. Also, the Fed’s dollar swap lines are being established to resolve the dollar shortage around the world.

>>17999583
Lol what does that have to do with anything? By market selling dollars at a fixed rate in different fiat currencies the fed massively increases the supply therefore lowering the price

>>17998226
>Do you physicly have dollars?
Yes.

>>17999706
There is no fixed rate.
All fiat currencies are massively printed, just not (yet) at the same time.

>>17999178
pls answ this. I'm all in cash right now after exiting all positions, but intend to buy back in once everything hits the floor. I don't want to hold all this cash but right now it's surely safer for the moment when things are about to crash hard?

>>17998715
not much more, the fed will crush the value of the dollar

>bbbbbbbbbbbbbbrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr

>>17999842
Physical metals idiot.

Without deflation USA will be like Japan. Bread costing $30000 and annual growth of 0%.
I doubt they want that.