/biz/ - Business & Finance

[Anonymous No.21982714]

It's over.

[Anonymous No.21982732]

>>21982714
>It's over.
That's correct

[Anonymous No.21982835]

>>21982714
Can you post M2 velocity * M2 quantity?
I'm phoneposting, or I'd do it myself.

[Anonymous No.21982860]

explain this to a brainlet

[Anonymous No.21982891]

>>21982860
money isnt circulating as much anymore

[Anonymous No.21982903]

>>21982714
mother of christ is there a way to recover from this at all?

[Anonymous No.21982916]

>>21982903
without hyperinflation anyway?

[Anonymous No.21982935]

>>21982903
BRRR

[Anonymous No.21982937]

>>21982903
>he doesnt know

[Anonymous No.21982951]

>>21982916
raising the minimum wage I guess, though if the velocity of money is slowing we will almost be at stagflation or deflation

[Anonymous No.21982954]

>>21982916
An increase in resources.

[Anonymous No.21982956]

>>21982714
You mean trickle down economics doesn't work!!!?? SHOCK

[Anonymous No.21982972]

>>21982903
Don't tell him.

[Anonymous No.21982991]

>>21982714
you mean when the entire economy is locked down and half the people are out of work money doesn’t flow much? shocking.

[Anonymous No.21982996]

>>21982835

[Anonymous No.21983007]

>>21982860
People are desperately trying to pay down debts and save dollars while the FED/Treasury is creating a huge amount of new dollars

[Anonymous No.21983008]

>>21982956
Yeah, shutting down the entire economy is classic Reaganomics.

[Anonymous No.21983011]

>>21982996
kek, looks like printing money for the false economy doesnt do anything

[Anonymous No.21983019]

>>21982903
>>21982916
I suppose we could go for hyperstagflation

[Anonymous No.21983026]

Everything is fine right now.
SHTF when economy opens up fully again and velocity bounces back up.

[Anonymous No.21983044]

Everything is fine goyim, nothing to see here

[Anonymous No.21983046]

Poor Americlaps... you better embrace your ANTIFA overlords soon. Communism is the only solution

[Anonymous No.21983058]

does this make sense?

>I think it's more a reflection of quantitative easing turning t-bills held by banks into cash, IIRC. Huge increase to the money supply that basically just sits at the banks (as the fed pays interest on excess reserves), so M goes up due to quantitative easing, but V on those incremental dollars is effectively 0, so average V falls.

[Anonymous No.21983067]

>>21983008
On the plus side, if inflation goes the way of 1920s Germany then at least I'll be able to pay off my mortgage for the price of a loaf of bread... before WW3 kicks off

[Anonymous No.21983078]

>>21983008
>starts an economic war with China and all the large money interest who were profitting off of it
>gets fucked in the ass by a virus originating from China (totally by accident lol)

Yes, goy, the conspiracy is the virus is outright FAKE. There is no way a heavily overpopulated communist country facing political tension all around its border would actually create and purposely release a REAL virus, right?

[Anonymous No.21983091]

So were getting deflation?

[Anonymous No.21983107]

>>21983091
soon

[Anonymous No.21983119]

>>21983091
Not really. Deflation is something that happens more under a hard currency. Although there are different types of deflation I think.

[Anonymous No.21983140]

>>21982714
this looks bullish!

[Anonymous No.21983142]

>>21983091
Right now velocity of money is down, which is creating deflation
When velocity picks back up a tidal wave of inflation

[Anonymous No.21983201]

>>21983119
Explain to me like Im a mouth breathing retard
>>21983142
But will we see it pick up? It seems to me that the average American is either crippled by debt or throwing their new cash into an overvalued market. Same for most small/medium business as they seem to be overleveraged.

[Anonymous No.21983258]

>>21983201
When there is a hard money system like gold and silver, governments can't print money and debts can't get repayed as people start hoarding money and stopped borrowing and spending. But as things are currently, the government just creates money and hands it out to people so that they can pay their debts and whatnot.

[Anonymous No.21983308]

>>21983258
Oh ok, I get it. But what about the whole eurodollar situation? Wouldnt that make all of the printing necessary as their is lack of paper money to back the amount of dollars in circulation?

[Anonymous No.21983309]

>>21982714
> A liquidity trap is a situation, described in Keynesian economics, in which, "after the rate of interest has fallen to a certain level, liquidity preference may become virtually absolute in the sense that almost everyone prefers holding cash rather than holding a debt which yields so low a rate of interest." A liquidity trap is caused when people hoard cash because they expect an adverse event such as deflation, insufficient aggregate demand, or war.

[Anonymous No.21983393]

>>21983308
Well, I think most of the currency is already digital. The digital currency gives them even more control in specifically targeting different sectors to inflate.

[Anonymous No.21983423]

bitconeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeect

[Anonymous No.21983459]

I kind of forget that most people havent left their houses in 6 months. I literally haven't changed my life at all, and have still been going to work everyday as normal. Never wear a mask, rarely wash my hands, etc.

[Anonymous No.21983515]

>>21983309
Funny how liquidity trap is also mitigated with higher inflation like Powell mentioned.

[Anonymous No.21983530]

Makes sense that velocity would drop as the currency supply explodes higher, at least initially.
If velocity goes back up you're looking at some serious inflation...

[Anonymous No.21983789]

>>21983459
Christ I’m jealous. Systematically executing everyone over the age of 70 would have been better than this.

[Anonymous No.21983915]

>>21982891
MONEY PRINTER GO BRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR

[Anonymous No.21985062]

bumping the only actual good thread

[Anonymous No.21985094]

>>21983091
>>21983119

inflation / deflation is not the same thing as money supply. You can get deflation even with money supply going up if technological improvements increase production of goods, or usually temporary periods of deflation when credit contracts.

Inflation / deflation is also subjective. If a phone for example, goes up 10% in price in one year, but has 10% higher GHz, (regardless of CPU architecture or actual computational power), the government would consider there to be no inflation. But I think most people would consider that 10% inflation.

So while CPI and other government metrics could register <2% inflation or even deflation, the "real" inflation could very well be in the double digits. And it certainly is for housing, healthcare, and education. While energy prices drop and food prices remains stable (even the quality of the food drops, and the supply becomes less reliable, the government only looks like price of certain items per $).

[Anonymous No.21985132]

If Biden wins, will he implement UBI and Universal Healthcare? That would be a fatal blow to american economy.

[Anonymous No.21985178]

>>21983789
Ya it's been pretty great. I still technically qualified for cerb benefits as well since my work was essential and I had my hours "reduced". Little do they know I was just a lazy employee before, doing a skilled job that my bosses don't actually know how to do or how long it should take (and doing it with almost no direct supervision, as long as it gets done and they don't have problems after, no one gives a fuck what I do or when I clock out). Once I saw that you could qualify with 10 less hours worked a week "due to covid-19", I just started working 25% faster and finishing my required work in 6 hours per day instead of making everything take 8. So I've also been getting $1k every 2 weeks on-top of 30 hours a week @$30/hr

[Anonymous No.21985407]

>>21982835

>>21982996 doesn't into custom series
Here's Quant * Velocity on Log scale

[Anonymous No.21985556]

>>21985132

Once the Economy opens and inflation is obvious they will panic and institute UBI. Can’t wait for hyperinflation

[Anonymous No.21985953]

Nothing ever happens. We’ll be fine. God is protecting our country.

[Anonymous No.21986027]

Correct me if I'm wrong but when that money eventually starts moving we end up with runaway inflation?

[Anonymous No.21986232]

>>21986027
Nothing to correct, that's exactly right.

[Anonymous No.21986409]

Finally a thread with actual content. Looks like our economy is basically given to the treasury. Up to them how we proceed from here. Strange to see when December 2019 onwards they were doing the repo operations and printing billions.

[Anonymous No.21986477]

>>21982916
Ending income tax

[Anonymous No.21986528]

First Sergey betray, now Jerome follows suit?

[Anonymous No.21986547]

>>21982714
Bullish for btc n metals

[Anonymous No.21986599]

>>21986477
Gov will probably end income tax to try to get that velocity to pick up and it will work along with their other policies.
Leaving people with more of their cash is inflationary not deflationary.
Hopefully the no-tax policy will stay post-crash so we can actually build a better/stronger/faster economy this time around.

[Anonymous No.21986637]

>>21982956
Redditor detected...

[Anonymous No.21986663]

>>21982951
>raising the minimum wage
lol, and say hello to even higher unemployment
epic xD

[Anonymous No.21986685]

>>21985407
it's fucking over holy shit

[Anonymous No.21986692]

>>21983078
subhuman gook

[Anonymous No.21986707]

Bros im scared...
Is this really a big deal or are people doomposting?
Is my money going to become worthless?

[Anonymous No.21986739]

>>21982951
What in the world? How will raising the min wage lower inflation?
>>21986663
and more unemployed = more full time joggers

[Anonymous No.21986748]

>>21986599
>Don't give the cattle funds goy
>Keep them without option goy
>Have them spend it fasssssssst
back to the >>>/o/ven

[Anonymous No.21986752]

this is why Jerome looked so nervous he knew this was going to come out

[Anonymous No.21986788]

>>21986748
You read the words but you didn't comprehend it
Removing income tax should happen but its not going to prevent hyperinflation, it will make it worse

[Anonymous No.21986795]

what does this mean for my stocks? do they keep mooning but it doesnt matter because if I sell them i get toilet paper dollars?

[Anonymous No.21986808]

>>21986707
>going to
Anon..I--

[Anonymous No.21986818]

>>21986795
it means you will be green every day but the actual value of your portfolio will be decreasing

[Anonymous No.21986883]

SELL MY ENTIRE PORTFOLIO AND GO ALL IN ON GOLD????

[Anonymous No.21986915]

Monetarist theory doesn't explain inflation. Get over it.

[Anonymous No.21986926]

>>21986788
And making the jewish voodoo economics collapse is a bad thing? We have different views on what should happen with current institutional arrangement I guess, stupid libtard.

[Anonymous No.21986955]

>>21982714
So should I be holding cash then? I’m so confused

[Anonymous No.21986979]

>>21986915
WTF are you on about? The expands the money supply by buying back bonds at inflated prices.

[Anonymous No.21986995]

>>21986979
the FED* expands

[Anonymous No.21987018]

>>21986795

Cost of goods and services will rise faster than sales / revenue. Many businesses will become non-viable and go out of business (stock goes to zero). Many will issue more shares to raise cash to stay afloat. So the marketcap of the company will rise but the share price won't necessarily rise due to dilution.

[Anonymous No.21987055]

>>21986926
No you've failed to understand again. No value judgements were in what I wrote.
> more inflation makes hyperinflation worse
The system should and will collapse and people shouldn't pay income tax. You've spent too much time immediately jumping on people on /pol/ and/or reddit, you don't bother to try to read and understand first

[Anonymous No.21987114]

>>21982860
FED prints shitloads of money -> gives it to big business directly or in the form of less tax etc

big business keeps the money in reserve/not to spend despite the printing

even though amount of dollars goes up inflation stays flat as value is all locked

as soon as its favourable to unlock value and all the money from the sidelines comes into play on the main stage the entire economy collapses due to record bills being printed entering the market all at once, driving down the price of each individual bill as it should have done when it was printed but didn't cause velocity is low.

[Anonymous No.21987135]

>>21987018
isnt this what elon already doing?

[Anonymous No.21987221]

>>21987055
>immediately jumping on ideological enemies
correct, the time for taking any centrist or (((sane))) arguer serious is gone since 5 years, and it will deteriorate faster and faster, and those who refuse to give a rational arguer any time is exponentially growing. Welcome to Winter, you better keep your mouth shut if you want to survive and are not ready to become a martyr for your (((sane))) views

[Anonymous No.21987222]

>>21982714
So, the commies where right?
> they will sell us the we will use to hang them

[Anonymous No.21987248]

>>21982951
That didn't work neither africa ir Venezuela, why would you do that?

[Anonymous No.21987268]

>>21986955
You need to try to do the same thing you should always try to do, which is to buy and hold productive assets. They are just harder to find now.

[Anonymous No.21987305]

>>21983046
Or even better, kill al the commies and start from zero and banning leftist as they did with confederate and nazi flags.
It World for Chile and Uruguay and now they are steady economies.

[Anonymous No.21987322]

>>21987268
* buy, hold, or build

[Anonymous No.21987329]

>>21987135

Yes, right now there is a panic to get into stocks, especially with foreign investors. The US economy is the tallest midget in this regard. The least worst place to store value. So stocks are going up even though profit margins are dropping and dividends are being cut, businesses are going bankrupt. Eventually this bubble will pop, inflation or not. For the past ten years money has flowed from stocks to stock holders through buy backs, dividends, etc. All of that is stopping, and instead money is being funneled into companies to keep them solvent. This is a big shift that will lead to long term declines over the next decade, even if there is a massive bull run panic bubble in the short term.

This is why its much safer to buy PMs or crypto right now. Ride the same bubble wave, but with assets that are actually scarce. Stocks will be printing by companies to fund themselves just like the government prints money.

[Anonymous No.21987334]

how do i profit from this

[Anonymous No.21987417]

>>21985132
No, actually will help, there's a reason why US is the only 'develop" country with free health care.

[Anonymous No.21987440]

>>21987329
>buy crypto right now
Opinion disregarded. Go post on the 100 other shitcoin threads that shit up this board and stay out of this one.

[Anonymous No.21987464]

>>21987440
Why don't you post something of value to counter his opinion?
It sounded accurate to me.

[Anonymous No.21987572]

>>21987329
is it time to stop posting in /smg/ and start lurking /pmg/

[Anonymous No.21987692]

>>21987572

This isn't /smg/..