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/biz/ - Business & Finance

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19742543 No.19742543 [Reply] [Original]

Realistically, how long can the fed keep holding the market up?

>> No.19742556


>> No.19742739

Indefinitely. it's not called the "central" bank for nothing

>> No.19742752

however long it takes to get over this gay engineered chinese virus. Don't forget, the US economy was flying high under our Emperor Trump before all this.

>> No.19742754
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3 more days

>> No.19743517

The US economy was a time bomb, you were just too fat, drunk, and stupid to notice that we never fixed the problems we had in 2008. We'll kick the can down the road until it grows large enough to kill us, because sacking up and dealing with the problem head on might make boomers mad.

>> No.19743577

forever. however, the mutt dollar will become worthless

>> No.19743607


>> No.19743648

I don't get why you people think the Fed cares about the stock market but NOT the dollar? The dollar matters more to them. It would be stupid for the Fed of all places not to care.
inb4: why then why did they print forty bazillion dollars?
Because they could. Look at inflation rates. We're slowing heading into deflation. This situation is fucking catastrophic. The Fed could've printed even more money if they wanted to. Their goal is 2% inflation and we're wayyyyy under, even with the all money they're spewing.
inb4: it might cause gradual longterm inflation
Yeah that's why 2 years from now they'll jack up interest rates. They have tools at their disposal. The Fed isn't just a printer.

seriously, why would the Fed NOT care about the dollar? its the dumbest fucking theory out there

>> No.19743764

Buy shares, offshore equity assets, relist shares on foreign exchanges, throw away last vestiges of useless old currency (by printing to your heart's content), collapse original host economy, retool dead host into low level resource extraction economy.

Gold and crypto also work in lieu of equity assets. But the dollar's a tool to buy important stuff, with metrics that need to be fudged as long as possible, nothing more.

>> No.19745208

based smart anon, lots of people dont understand how the monetary system and fed reserve work.

>> No.19745240

could you explain this statement?

>> No.19745250

>to notice that we never fixed the problems we had in 2008
they have been solved with those banks failing I'd say.. so no more risky loans around

>> No.19745277

>Look at inflation rates. We're slowing heading into deflation
so better to stay in cash bro?
why they print money but we face deflation? non sense

>> No.19745308

/smg/ was aggressively shilling IVR last week. I want to believe the posts encouraging people to leverage the fuck out of it were trolling.

>> No.19745330
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>because they are restandardizing the dollar by September 18th
>gold silver btc xrp
>check em screen shot em

>> No.19745384

Its called liquidity crunch. Nobody has cash cause its tied up in assets and debt

>> No.19745407

how the hell are they going to jack up interest rates? we got up to 2.5% in 2018 and SPX took 20% dive. that's the problem with you mmt retards. you just assume that the same trick always works no matter what. in 2008 we had a 5% buffer to drop, this time we only had 2.5%. assuming the dollar makes it out of this alive, there's no fucking way you're going to raise rates to even 1.5% without triggering another market crash. and if Jerome was brave enough to let it happen, we would've already cratered by now but at the nearest sign of market volatility he goes full speed Zimbabwe every single time.

none of this shit is sustainable and you are being intellectually dishonest when you make that false claim

>> No.19745472


>> No.19745510

you feared it at $150
and rightly so
it went to $107
then it went to $200
then back down to around $160 now

>> No.19745541

Honestly this. The dollar is more important to their power than the stock market is

>> No.19745595

Unironically as long as they want. They're literally Jews.

>> No.19745740

this but ...
they can probably go on for a long time until the consequences will hit

>> No.19745776

longer than your life

>> No.19745798

Not forever lol, but a very long time. Decades probably unless we start seeing some real shit. (And we might see some real shit here soon ;) who knows)

>> No.19745820

True, it isn't sustainable, but the United States is not Zimbabwe.

>> No.19745833
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Here is the only answer that matters:

Weather the market is actually worth anything as they prop relative to anything else is a different story.

But they do so at the expense of civil unrest, every tool they employ causes massive public suffering down the line (1.75 years), the hard limit rests on grocery prices and rent payments.

The question you should ask is when do people start having trouble feeding themselves & keeping a roof.

>> No.19745844

We're at just over 18% Zombie companies. The market will react as this number grows. The market will force the issue to be solved. The longer this goes on, the worse the fall will be

>> No.19745850

The federal reserve will seek to draw out this process as long as possible instead of just letting it correct.

This is unspeakably bad.

>> No.19745860

>had 2.5%. assuming the dollar makes it out of this alive, there's no fucking way you're going to raise rates to even 1.5% without triggering another market crash. and if Jerome was brave enough to let it happen
he will let it happen, because the fed chooses the dollar over the market. the dollar is the root of their power.
in an emergency, they will raise rates. screenshot this. the federal reserve isn't going to kill itself just to preserve stocks for a few years. they're too selfish for that

>> No.19745899

Personally i'd say the USD has 10 years left max. The issue is the RoW, they'll be the ones that demand change. They've already set up SDRs to swoop in to replace the USD.
>the United States is not Zimbabwe.
yet, the US has the world's largest debt EVER. Add to that the world's most evil tax regime. Burgers would have to be retarded not to renounce.

>> No.19745903

In a way the stock market doesn't really matter. Its performance is decoupled from real performance of the underlying assets by now. It can go up or drop as it wants. Reality is for average person it has zero effect on their lives. On the other hand dollar is losing value. Meaning that all prices inflate. So people should buy property now and have as little worth in cash as possible. Then it should be fine for average person.

>> No.19745919
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They're simply providing liquidity for smart money to escape into gold/cryptos.
It it wasn't for the FED you'd be seeing a flash crash.
I suspect they don't one a flash crash because there's a few months remaining before the election.
They'll give the orange retard the boot 1 month before the actual elections, after he's spent half a year bragging how he saved the economy.

>> No.19745920

I think it's a ruse to rip off everybody of their short money, which would be the logical conclusion. Everyone is short? Pump it. It's unfortunately no meme. It will not drop really until everyone gone from short to long mania.

>> No.19745924
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>> No.19745953

so what the fuck is actually going to happen? I keep hearing about "the fed" and "the markets" and "the dow jones" and it's all fucking meaningless conjecture. nobody can give a fucking concrete answer as to whether things are going to "collapse" or not. will the dollar be worthless soon? is this a bad time to make big purchases or take on some debt? should I spend what I have while it's worth something?

>> No.19745979

>I don't get why you people think the Fed cares about the stock market but NOT the dollar?
GDP, thats my first guess. the stock market pushes up GDP, makes it look like america isn't the failing cesspool it is. They want a high GDP to issue more debt.

Even the reality of today, 20% of the companies are zombies (more outgoings than income). Why as an investor would you think the USD is a 'safe haven asset'. The numbers are skewed, debt is being used just to push GDP higher. Other counties love it when the US creates more USD (debt) they get to create more fiat also. It keeps the fx ratio stable. The mutts aren't actually productive, the whole house of cards is built upon debt.
>Everyone is short? Pump it
This is the way markets work. being contrarian generally pays

>> No.19746002
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Things already are.

Policies in place just shift the pressure from the upper classes who invested in literal shit down to the lower classes, who need to buy potatoes and bread this week instead of meat and cheese because those are too expensive.

The process will continue until it hits a form of physiological bottom. We call this starvation.

>> No.19746018

>can give a fucking concrete answer
no one can predict the future

>> No.19746037
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The best option is to invest your money into things which reduce your dependence on systems of healthcare, energy, and food.

Homestead up.

We've literally never been here before but from brief historical slices these periods of insanity precede the greatest wars mankind has ever participated in.

>> No.19746064

There wont be anymore world wars though. Just endless proxy wars and coup detats

>> No.19746067
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so I SHOULDN'T buy a motorcycle?

>> No.19746085

Not saying there HAS to be a large scale world war.

But people definitely won't be pleased and will channel planetary mob anger into something.

>> No.19746142

You don't know

>> No.19746168

This. Also, the USD is the most sought after
global currecy. You can do business in any Latin American, African or Middle Easten country using the mighty dollar.

Gold bugs and BTC maxis calling for hyperinflation are beyond retarded.

>> No.19746181

doesn't matter. buy ARPA + asian low caps and wait.

>> No.19746184

>never fixed the problems we had in 2008

Look at this, anon, who doesn’t know about removing the gold standard, removing the silver standard, Breton woods, and the million other monetary reforms.

>> No.19746224

>need dollars to buy stock market
>USA stock market worth 37 trillion
>USA stock market is most stable, reliable economic machine in the world

He doesn’t know lmao

>> No.19746237

Motorcycle is actually good. Quite stable money haven

>> No.19746303


It is all obvious. The short term agenda is fucking Drumpf2020, everything else will be sacrificed for it.

>> No.19746324

>Homestead up.
I'd say the best thing the for the mutts is to renounce. I do understand that most mutts are to brainwashed to do this though.

>> No.19746356

And afterwards they can blame trump for failed economy in next presidency

>> No.19746360
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>do people start having trouble feeding themselves

Already happening and getting worse with time

>& keeping a roof.

Rent protections and unemployment extensions end this July...

>> No.19746392

We are in a liquidity trap.
More money in circulation is not making inflation grow. At this point, they will have to face hyperinflation sooner or later, and they will try to have the tools to control it.

What only matters for them is NOW. But as I said, hyperinflation will hit some day, and then, that day will become a NOW and they will have to be worried about it

>> No.19746569

>inflation is low because velocity of currency is dropping towards zero
>fed: hurr durr this means we can print indefinitely!
>print currency into oblivion, velocity picks back up after corona and as people realise what is going on
>hyperinflation ensues, crypto gold and silver moon

I don't get anons that don't realise that this is happening. Its the exact same cycle that has happened hundreds of times in the past. Every single fiat currency ever conceived of has gone to zero. The dollar will be no different, it doesn't even have 5 years left

>> No.19746572


>> No.19746717

but they print and they put a lot of liquidity nto the market devaluating the dollar

>> No.19746720

This, unironically

And there's nothing you can do to stop them

>> No.19746732

>The dollar is more important to their power than the stock market
they are jews and have secretly accoomulating gold so the theory is that they don't care a shit about dollar they will put the gold standard at some point pofiting off it

>> No.19746770

Weak dollar = easy to pay off our DEBT and also improves our exports. Overly strong dollar is fucking us. Cratering its value will not hurt the elite whose assets will mostly appreciate to compensate (ie stocks which long term adjust to inflation). Devalued dollar is good for mr fed and only fucks the middle-class saver/consumer and retirees.

>> No.19746806

Bingo. The point of the printing was to save the dollar and stave off catastrophic deflation, not to save stonks from a healthy 30% correction. The money was meant to save the economy and provide the basis for an eventual recovery in the stock market, not go straight to the stock market sending it rallying to ath in anticipation of the economic recovery that now won't happen because everyone just "invested" all the money that was meant to recover the economy into zoom instead.

>> No.19746989

>More money in circulation is not making inflation grow
Maybe because it goes into bonds and not into everyday goods

>> No.19746990

They will keep it up until they have enough rare earth minerals to start manufacturing again. Colorado just started and Texas is setting up shop. It's always been about rare earth minerals.

>> No.19747019

But this time, it will be different! It's a new economy!

>> No.19747082

You talk like the Federal. Reserve is some sentient being. The FED is ran by people who have been absolute pencil pusher slaves to get their positions. If they hike rates and crash the market, they will destroy their legacy and ruin their future careers because the market crash will be blamed on them. It is far easier to pray aren’t going to be the guy holding the bag and just keep the gravy train running.

By the way their inflation statistics are BS, if you look at real things people buy, not their handpicked basket, it’s more like 10% a year.

>> No.19747098

Guys you had ALMOST convinced me to buy gold and silver.. now what is this deflation thing? Weren't we supposed to be in a depression inflated market so ''buy gold buy gold'' meme?

>> No.19747109


Deflation first, then hyperinflation.

>> No.19747172

Forever. Just go long man it’s a unbeatable position. Fuck them

>> No.19747173

There are ~60 ingredients need to make a smart phone. Silver and gold are amongst them.

>> No.19747176
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>>19742556 <----
They print infinity money ---> they use it to buy the market ---> market go up forever

>> No.19747234

Yes. The ride never ends

>> No.19747249

>Deflation first, then hyperinflation.
timeframe for each?
Example: deflation (3 years--then inflation)

>> No.19747251
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until europe go full bankrupt

then u can say byebye

>> No.19747255

>~60 ingredients need to make a smart phone. Silver and gold are amongst them
but the demand is not to high to justify the prie increase

>> No.19747259
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>Realistically, how long can the fed keep holding the market up?
Until people stop believing in the Dollar.
This is also what limits money printing and MMT.
Once trust fades they either have to stop expanding money supply or they start burning their very substance.

>> No.19747260

Would a world tracking ETF work to reduce exposure to money after things start getting cheaper? SWDA for example? Or would real estate be better

>> No.19747315
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Stock holdings might be raped by taxes. Same with real estate. Real estate can't even run away.

When you sell just because your numbers went up government is suddenly entitled to XX% of your holding just because of inflation.

For real estate there were special taxes introduced in germany that those who profited during the inflation of the 20s had to pay:

>> No.19747334

It's not just about silver and gold. Look deeper. Rare earth minerals (not really rare just hard to get) have been the root cause of the chaos and corona is the cover-up.

>> No.19747343
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based schifflord poster

>> No.19747381

so if the gubmint doesnt want you to be rich, you wont be rich no matter what you do?

>> No.19747390

it varies and needs a trigger to make the money start moving, as long as it stays in assets nothing happens

>> No.19747430
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>so if the gubmint doesnt want you to be rich, you wont be rich no matter what you do?
No, if you have wealth in form of precious metals and cryptocurrency the government's tax henchman can not get you.

>> No.19747470
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I think we may just skip the deflation part, based on Powell's previous recent statements, he's gonna just pump as hard as it takes.

>> No.19747530

if things go to shit nobody's gonna be shopping for a motorcycle ergo it will be a worthless investment

>> No.19747632

>They print infinity money ---> they use it to buy the market ---> market go up forever

--> inflation ----> stock crash ----gold standard --------gold to the moon

you missed this

>> No.19747648

>but the demand is not to high to justify the prie increase
I agree. Price is probably fucked because of manufacturing. Think of what would happen to the price of an iPhone if gold and silver and the rest of the metals moon.

>> No.19747654

>The ride never ends
lol how will they pay the debt?
AT some point they will have to reintroduce gold standard

>> No.19747666

>as long as it stays in assets
what is the meaning of staying in assets? We stay in assets?

>> No.19747682

>actually paying for anything
Just print more dollars lmao

>> No.19748847

Why would inflation cause a stock crash and not just a ruling class who provides fpr the lower class basic essentials as long as they don't compete for their money?

>> No.19749633
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How wrong you'll be anon