Inflation is about to rear its ugly head

[Anonymous No.17382497]

You heard it here first. Screenshot me.

With coronavirus devastating actual production of useful stuff, and central banks around the world preparing to flood the markets with "liquidity" in order to head off the natural downturn, inflation is absolutely going to explode over the next year or two. It's so very easy to explain why that even you /biz/ types will be able to understand it -- especially the crypto fans.

Inflation is basically a money-supply issue. When a central bank starts "printing" (or, in modern terms, "creating entries in a bank database") money like mad, then there are more units of their money to chase after whatever goods are available. If they quadruple the money supply, then as that money moves into the real economy, the prices of goods will go up by (almost) 4X (minus a bit because of newly created goods).

The main reason that any crypto has any value at all is because the units cannot be created at whim. Whether the total supply is fixed or open-ended, there is at least some definite, predictable algorithm that generates new units.

Well, now we have less goods being created, and central bankers preparing to turbocharge their printing presses because OMG RECESSION!!! They're already talking explicitly about buying stocks and bonds to prop up the markets. Interest rates are already near zero or even below it in many developed countries.

It's going to be interesting to see whether money flows into crypto this time. Gold will be a safe haven as always. Not sure about real estate -- at least from my U.S. perspective, prices on real estate assets are already seriously high, and local governments are drooling all over the notion of adding more taxes to drain some of that valuation into their own pockets.

[Anonymous No.17382524]

If I have a ton of cash in the bank what is the correct play in this situation?

[Anonymous No.17382626]

>>17382524
>If I have a ton of cash in the bank what is the correct play in this situation?
Transfer into assets that aren't subject to inflation, but you would only want to do that if you are 100% sure there's going to be large scale inflation soon and not because of a /biz/ post

[Anonymous No.17382627]

>>17382524
Buy crypto/gold/silver. Anything that is not tied to the conventional fiat clown system.

>>17382497
Also what is your opinion on silver? Its been undevalued for years now...

[Anonymous No.17382679]

>>17382627
Silver's value is tied quite strongly to its industrial uses. If there's a serious long-term recession, with monetary policy being used to prop up values, then who knows? Could drop because nobody is really using it, could go up because everybody is hoarding it.

For PMs, I would favor gold over silver, myself. There's always that "ratio" that the two have historically followed, so if silver is rising because of safe haven then gold probably is too, and if silver is falling because of lack of industrial use then gold might not be.

Note that India claims to have just found a huge gold deposit, but I'll believe it when I see it.

[Anonymous No.17383478]

>>17382626
>Transfer into assets that aren't subject to inflation
All assets are, though. You just want stuff that will rise at the same rate as (or, better yet, at a higher rate than) inflation.

So, basically, stocks of companies that have pricing power, or at least that sell commodities that are constantly needed, such as food.

[Anonymous No.17383834]

>>17382497
No, if anything deflation will occur..
since the financial central banks have pumped massive amount of liquidity into the market (Quantitative easing, and reduction of interest rates).
Yet they continuously have failed to meet their inflation target of 2-3%, when asked about the low inflation, they rarely gives straight answers but merely says "it will pick up eventually".

I believe the reason for the low inflation and a potentially deflation to occur in the near future, is because the money pumped into the system by the central banks don't circulate, it is kind of like the Keynesian meme of "just give everyone a million and they will consume more and pump up the economy" - but instead of consuming more, they just park the money in bonds or bury it in their backyard.

[Anonymous No.17383969]

>>17383834
>Yet they continuously have failed to meet their inflation target of 2-3%
Ahem. Were at 10%

[Anonymous No.17384154]

>>17382524
Bank insurance is a meme check out how much is actually in the fund in your country, its a joke.
>>17382627
PMs wont be used a money again. Its a newfag meme also.

[Anonymous No.17384197]

>>17383969
This
>>17383834
This

[Anonymous No.17384236]

Interested in parking my money in gold. Do I have to legit go out and buy big gold blocks or are there stocks that basically act like gold?

[Anonymous No.17384321]

>>17382497
Very much Armstrongpilled
Very much wrong so
>With coronavirus devastating actual production of useful stuff
You wouldn't believe your eyes how little the corona virus will impact world gdp. People will resort to calling the numbers "fakest and gayest" to the highest order to justify their bias. Just wait for it.
>inflation is absolutely going to explode over the next year or two
Yes, possibly. However it will come from oil having found its bottom around 50$ to 55$ per barrel and is now slowly aiming for the stratosphere. And no; supply and demand doesn't apply anymore.
>The main reason that any crypto has any value at all is because the units cannot be created at whim.
Utter bullshit. Crypto, as of now, derives value from the abundant existence of fiat currency. (just like everything else)
Also cryptos can be created at whim; just take a look at how many shitcoins there are already.
WTF are you talking about?
>Well, now we have less goods being created,
The planet is filled to the brim with shit that no one needs and no one will buy. All they need to do is dig up the landfills (expansion) and put last years unsold shit back on the store shelves.
>and central bankers preparing to turbocharge their printing presses because OMG RECESSION!!!
The BOJ already is in full overdrive owning most of japanese debt, ETFs and REITS. So that's already the new normal there.
The ECB is committed to negative interest rates and will probably buy corporate debt at such a slow rate that literally no one will take notice and its impact therefore will be so little...
The FED, well, REPO is shrinking as of late ( https://fred.stlouisfed.org/series/WORAL ) and the balance sheet isn't expanding to the predictions of the doomtards ( https://fred.stlouisfed.org/series/WALCL )
Explain that shit
>It's going to be interesting to see whether money flows into crypto this time.
Seeya at Bitcoin 600-1200$ (then starting a very slow climb to 6+ figures)
Gold has peaked for decades to come

[Anonymous No.17384540]

>>17382497
Real estate is so pumped right now I'd be astonished if shit didn't hit the fan this year or early next year. In my town that was relatively quiet the last 10 years, the economy has exploded and all the natives living here are getting pushed out of the housing market and homelessness is rapidly rising. The consumerist economys current iteration is incompatible with human life. It might work for bug people that have no souls and are fine working 12+ hours a day for weeks on end, but it doesn't work in the first world and it's rapidly falling apart.

[Anonymous No.17384581]

thats why its best to own your own house, your own land, grow your own food, and not give fuck about any shit like this.

[Anonymous No.17384700]

>>17383834
WHY THE FUCK DO THESE JEWS EVEN WANT INFLATION? WHY IS IT NEEDED? AAGGGHHHHH REEEEEEEE FUCK THE CENTRAL BANKS

[Anonymous No.17384786]

>>17384236
GLD. Buy at least one gold coin.

[Anonymous No.17384848]

>>17384700
Jews print value that they use for themselves. But the value has to be expensive from somewhere/someone. they use inflation to expense to balance out the new added value by devaluing everyone else money. This is how they covertly steal value from the goyim without them realizing. We live in a system of peak parasitism, the rich will keep getting richer to the point that they will shill communism as the solution

[Anonymous No.17384882]

>>17384236
There are a ton of Gold ETFs like GLD, IAU, BAR, just google it. You can even do options in GLD if you want.

[Anonymous No.17385030]

>>17383478
>All assets are, though. You just want stuff that will rise at the same rate as (or, better yet, at a higher rate than) inflation.

This.
Stocks are valued relative to earnings and growth, if the underlying currency inflates then the valuation wlil inflate as well. Should economic growth slow then stocks will lose value but that's no different than in a non-inflationary case.
Precious metals generally maintain their demand regardless of how they're valued, with some adjustments depending on industrial uses of specific metals.
Assets in general are a hedge against inflation.

On the flip side, what you don't want to be is an owner of debt. Spending expensive dollars today to be paid in devalued dollars later on is not a good deal. Bonds should underperform.

Being in debt, though, is great. If you're certain that inflation is coming, then load up on that margin! Kiss those student loans goodbye!

[Anonymous No.17385073]

>>17385030
What’s it mean, load up on margin to pay off student loan debt?

[Anonymous No.17385097]

>>17384321
>supply and demand doesn't apply anymore
All hail our economics overlords! For they have superseded mere supply and demand

[Anonymous No.17385551]

>>17384848
You got it.
The common man is about to be priced out of everything, forever. By design.

[Anonymous No.17385965]

>>17385073
>What’s it mean, load up on margin to pay off student loan debt?
two diff things.
buy assets on margin.
If you have student debt then just pay it off with depreciated dollars after inflation.

Your debt doesn't inflate, so cheaper fiat currency makes it easier to pay them off.

[Anonymous No.17386338]

>>17382497
>>17382524
>>17382626
Hey anons, let me clarify for you. It doesnt make much sense to try to predict if it will be an hyperinflation crisis or an ugly deflation. The thing is that this will happen according to the mood of the government. If americans get push towards more populist governments like Sanders, then he will print money and go to hyperinflation, then banks and lenders will suffer. If the government is more reasonable and cuts expending, then market will colapse and enter deflation.

Basically you cant predict for sure, then the reasonable choise is to invest in a portfolio that will make you profit one way or the other. As Nassim Nicholas Taleb would say, the secret is investing in a solid portfolio that is robust enough to make money for you. Dont try to time the next Black Swan.

As I'm in a good mood, I'll recomend a reading for you guys. It's a MUST READ. Explains everything, and you will thank me later. So please DO THANK ME, because I didnt need to be here helping you random anons over the internet. You are welcome.

https://docsend.com/view/taygkbn

[Anonymous No.17386404]

Hedge with $nCoV

[Anonymous No.17386445]

>>17386338
Also, like the degenerate gambler I am, if I had to take a bet, I would bet on deflation, because the system always works in order to fuck the regular Joe, instead of the World Financial Elite. Since everyone is in debt right now, either on real estate, cars, etc, I would bet the system will just pump stocks till the point everyone will put its savings there, then everything will colapse, taking jobs, savings and all. Then assets prices will colapse, with some simple commodities rising (not in prices, but in purchase power), since people will turn their attention to their basic needs, gold somehow rising and stocks, bonds falling. Everyone that is hoarding money will increase tenfold their purchasing power.

But, as I said, there's no point in trying to guess.

[Anonymous No.17386489]

>>17384848
this guy gets it

[Anonymous No.17386535]

>>17384848
This. Its why jews have been kicked out of 109 countries. People eventually catch on to their obfuscated ways of thievery

[Anonymous No.17386589]

>>17382497
>If they quadruple the money supply, then as that money moves into the real economy
this is not true. They go into bonds

[Anonymous No.17386604]

>>17382497
>It's going to be interesting to see whether money flows into crypto this time. Gold will be a safe haven as always.
a lot of money will flow into crypto

[Anonymous No.17386758]

everyone should just take out huge loans

once inflation kicks in, as it already has [ everything in my grocery store costs twice as much as it did 2 years ago ] - you can pay back the loans with your inflated currency that has less purchasing power

im taking a huge credit loan to pay for (((student loans))) and paying it back once hyperinflation kicks in. Free money

[Anonymous No.17387068]

>>17386758
>once inflation kicks in
inflation goes into bonds not in real goods

[Anonymous No.17387156]

>>17385965
>buy assets on margin.
>If you have student debt then just pay it off with depreciated dollars after inflation
would you suggest a mortage now to buy an house?

[Anonymous No.17387352]

>>17383969
2-3% per year numb nuts

[Anonymous No.17387434]

>>17383969
what is the difference between consumer inflation and inflation?

[Anonymous No.17387463]

>>17383834
>but merely says "it will pick up eventually"
how...

[Anonymous No.17388224]

>>17384848
>they use inflation to expense to balance out
how do they use it techically?
Basically... what do they do?

[Anonymous No.17388246]

>>17384848
Also, inflation is like borrowing money for yourself on the behalf of the population, with the assumption being that the economy will cover the extra liquidity that you are using right now as leverage in various financial transactions. These transactions include investments in government and private entities that pay back at an interest. I don't remember the exact numbers, but the fed's investments went from a few hundred billion to a few trillion after 2007-8. Now, they're signaling that they may no longer be interested in the government market. Imagine the chutzpah.

[Anonymous No.17388261]

>>17386445
>simple commodities rising (not in prices, but in purchase power)
what's the difference?

[Anonymous No.17388455]

>>17382524
Check how much you have insured and the rest put into crypto slowly into btc, eth, xmr and ltc.

[Anonymous No.17388500]

>>17384321
The main reason that any crypto has any value at all is because the units cannot be created at whim.
>Utter bullshit. Crypto, as of now, derives value from the abundant existence of fiat currency. (just like everything else)
>Also cryptos can be created at whim; just take a look at how many shitcoins there are already.
>WTF are you talking about?
Units, he mentioned that crypto units cannot be created on a whim, not entirely new crypto currencies you obtuse try hard faggot.

[Anonymous No.17388654]

>>17384321
good post, most of the other posts are various shades of gay
>>17384700
deflation causes economic contraction, overinflation causes overheating. it’s why there’s a target number you cuck
>>17385551
the “common man” has already been priced out for millennia, welfare capitalism has been the modern mode for a very long time. rich people want to rub shoulders with rich people, not bourgeois retards who think they’re hot shit with their bloated salary and McMansion

[Anonymous No.17388758]

>>17384700
>why is it needed

Would you give me $100,000 for 5 years at 0%?

[Anonymous No.17389536]

how you guys doing?

[Anonymous No.17390483]

>>17383969
This. Inflation is sky high right now. Just look at what people are paying for housing and food or anything for that matter and compare to a decade ago.

[Anonymous No.17390512]

>>17389536
Boom, $nCoV

[Anonymous No.17391136]

>>17382524
buy bsv sirs do the needful

[Anonymous No.17391473]

>>17386445
Is this anon a glowie?

Are you just trying to get us to sell our crypto’s and assets ?

Fucking well played if so

[Anonymous No.17392213]

>>17388758
Inflation is not interest rate

[Anonymous No.17392625]

>>17390483
how do they get away with so blatantly lying to the American people

[Anonymous No.17393124]

>>17392625
>if you give them circuses and bread they'll tolerate anything
Also divide and conquer. Check your privilege.