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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance


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54161724 No.54161724 [Reply] [Original]

>muh QT
AHAHAHAHHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAHHAHAAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHAH

1000$ loaf of bread incoming

>> No.54161746

it's so over for fiatsisters

>> No.54161748

what fucking clowns
$150 million in one week

>> No.54161761

>A year's worth of QT gone in a week
How did amerilards even accomplish this jesus christ

>> No.54161778
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54161778

>>54161724
>>54161746
>>54161748
they are printing the chad fad!
I am sad, because u nigger mutts are exporting it indirectly to me too, but it ll be funny to buy bread for 3x price a year later again!

>> No.54161780

>>54161724
Objectively a pivot, QE is back. Bobos BTFO, bullchads correctly called that Powell was a spineless cuck.

>> No.54161784

>>54161724
I'm just completely in awe at this point. What a circus.

>> No.54161794

>>54161724
Looolllllllahahahahahahajjajajahahahahahahahahahhahahahajajahahahahahahaha

Aaaaaaaaahahahahahahahahahahaha

>> No.54161815

>>54161724
Welp, it was fun while it lasted.

>> No.54161825

>>54161780
desu we knew that they couldn't do shit because it would all collapse if they did, what we didn't anticipate was that all the normies would lap it up and sell everything in fear

>> No.54161888
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54161888

>>54161724
What did you do with your TrumpBucks?

>> No.54161970

>>54161724
>not buying bread x3 etf

Stay poor!

>> No.54161983

>>54161724
Where do you get this chart? This isn't true...

>> No.54162099
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54162099

>>54161983
ok fed wagie

>> No.54162211

>>54161748
anon.....
those are 000s

Fed increased balance sheet by $297B
we're not gonna be able to afford milk soon
All because they wanted to save Oprah Winfrey

>> No.54162235
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54162235

>>54161983

https://fred.stlouisfed.org/series/WALCL

>> No.54162264

>>54161724
We all gonna be millionaires soon brosettes

>> No.54162296

America printed like mad all throughout covid and the dollar went up.

>> No.54162321

>>54161780
Rates just raised in Europe today by half a percent and Europe follows our lead…

>> No.54162341
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54162341

>>54162211
>needs food
found the meatbag, ahahah

>> No.54162366

DA BOORUN IS BACK ONS

>> No.54162377

>>54161825
>the normies

>>54162235
How long until they 404 this kek.

>> No.54162420

>massive increase in money supply in 2000, 2008-09, and 2020.
>no real shift in inflation the first time, US entered deflation the second time, and US flirted with deflation after 2020 until inflation took off a year later after reopening, when a massive labor market and supply chain crunch hit.
>But new money now that is a tiny, tiny fraction of 2020 is going to cause hyper inflation.

Goldbugs ranted nonstop about inflation for as long as I can remember, from 2000 on. They were finally right, but saying the same fucking thing for 2 decades and finally being right isn't impressive.

Every time M has increased in the past decades V has gone down.

/pol/ does this shit too, back in 2011 when Glenn Beck had Tucker's clout everyone was talking about the incoming hyper inflation. Instead we got historically low inflation mixed in with some deflationary periods.

A huge increase in the money supply is a necessary condition for very high inflation but not a sufficient one.

>> No.54162426

These fucking cunts, we're just going to be perpetually stuck with subpar growth and over inflated asset prices forever.

>> No.54162435

>>54162264
and it's going to mean absolutely nothing

>> No.54162498
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54162498

>>54161983
>>54162235
Watch this one

>> No.54162519

>>54161724
How is this shit legally allowed. They would rather the Fed slowly own everything than to let asset prices reset. What is the point of saving and investing diligently when they are just going to rig the cost of capital like this

>> No.54162521

>>54162498
weeeeeeeeeeeeeeee

>> No.54162546
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54162546

>>54162420
cope + seethe + dilate

>> No.54162604

What the hell am I supposed to do with my fiats... I am confused.

>> No.54162618

>>54162604
buy groceries now before its too late and bread is $100 per slice

>> No.54162682

>>54162420
>ignores we're already in a period of high inflation
the conditions were already met, now this will accelerate it

>> No.54162774

>>54161724
>>54162498
Is this how they manage to do the infinite money glitch?

>> No.54162775

I don't get, where to go from here? Does this mean that they can't stop the ponzi anymore?

>> No.54162831

>>54162321
Yeah while handing out money to the banks with the other hand.

>> No.54162971

>>54162775
the dollar hyperinflates, then biden will announce they will remove a 0 from the dollar and your $100 are now $10

>> No.54163007

>>54162420
the inflation of the past two years was caused by covid fucking up the supply chains and then russia fucking with energy supplies sending their prices sky high
putin starting fucking with these months before he send the first tank over the border but the smoothbrains cant comprehend prepositioning

both factors are now easing out so moeny printing today will not lead to hyperinflation in staples but yes to assets to the moon like it did in 2008

>> No.54163048
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54163048

>>54162498
What does this mean I dont understand it
Is line going down because bonds falling in value?

>> No.54163073

>>54163007
>this is le Putin's fault

>> No.54163129

>>54163007
You're retarded. all inflation is a function of money printing, its not supply chains, those were resolved long long ago.

value of the dollar is based on supply and demand. demand remains the same while they print $7 trillion out of thin air = value of dollar drops

>> No.54163153

>>54162420
All the chuds just look at america and are oblivious to the rest of the world. Everything the fed has done the BOJ/ECB/BOE has done worse. Capital is fleeing Europe and Asia and going to US equities/treasuries. The fed can print all it likes, because there is actually a global dollar shortage.

>> No.54163198

>>54163129
>all inflation is a function of money printing

Recent inflation, especially in Europe, has been caused by shortages of fuel because of the war and pipelines being blown up.

>> No.54163244

>>54163048
I have found this zerohedge aritcle from January.

What seems signifant also, instead of the treasury getting money from the FED they now lose money, while money is already tight because of the government debt.

And since then the hole has grown even bigger.

>The losses were the result of the Fed's own rate hikes, which increased the amount of interest the Fed has to pay to banks on their deposits and to money market funds that make overnight loans to the Fed. Its net income plummeted, and the interest earned from its bond holdings was eventually not enough to offset the costs.

>In other words, the Fed remains a fund flow passthru vehicle, only instead of remitting the interest collected from QE to the Treasury, it is paying the banks instead.

https://www.zerohedge.com/markets/fed-sent-76bn-treasury-2022-it-now-sending-650-million-banks-every-day-instead

>> No.54163265

>>54161724
Fed is literally pushing on the gas and brake peddle. I hope to God CS collapses and the markets go tits up.

>> No.54163602

>>54163129
they have been resolved in the past year
and look magically the peak in inflation was june 2022, funny how that lines up
but even within conventional theory you are flat wrong, inflation isnt caused by printing itself, it is caused by the loss in confidence that this creates, there is always a time lag
never forget fiat currency is always a giant congame

>>54163073
yes it was putin and the lockdown
do you have any idea what the energy problem did to europes industrial output

>> No.54163904

>>54163602
>magically lines up when they tighten, 2 year after supply chains were already fixed

>> No.54164051

>>54161724
jesus christ is it this bad? americans...how?

>> No.54164120

>>54163904
>2 year after supply chains were already fixed
now look up graphs that would actually support this argument and then draw a conclusion from the inflection point and date of those graphs

2 years ago we were still living in lockdown 2.0 how are you retarded enough to think anything was fixed then

>> No.54164163

>>54164120
that was 3 years ago retard. "covid 19", supply chains were fixed by end of 2020

>> No.54164166

>>54163153
>Capital is fleeing Europe and Asia and going to US equities/treasuries. The fed can print all it likes, because there is actually a global dollar shortage.

this problem may solve itself when the US defaults in september

>> No.54164167

>>54161888
now chart their whole presidencies

>> No.54164173

>>54163198
man just shut the fuck up, go watch your CNBC or something

>> No.54164181

>>54162321
That was their final rate hike and they're still only at 3.5% while inflation in Europe is more sticky. They literally can't raise it higher because it will bankrupt PIGS.

>> No.54164223

Debt maxxers how do we keep getting away with it?

>> No.54164234

>>54164181
The Eurzone overall has lower debt than the US government by quite a substantial amount

>> No.54164251

>>54164223
our lives are short and when we die its someone else's problem

>> No.54164329

>>54164234
Problem is that most of that debt is not denominated in Euros, but Dollars.

>> No.54164345

>>54164163
there was a second lockdown with the new variants in winter 2020-2021 retard
supplychains were fucked during that event

>> No.54164379

>>54164329
Doubt

>> No.54164394
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54164394

>>54161724

>> No.54164496
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54164496

>>54161724
I mean...
It's kind of understandable that they had to do something to accelerate inflation again.
The Ukraine war literally did nothing to scare the world into austerity, scarcity and higher prices.
Oil, as well as most other commodities have gone down in price significantly DURING the rampant rate of inflation over the past years.
Eventually, lower prices would need to be passed on to the consumer, which means the (unironically) strongest ever job market and economical climate in the western world would hit LOWER PRICES.
Imagine the consoooom mania. CONSOOOOOOM MANIA AT LOWER PRICES.
See... this can't be happening. Not at lower prices.
Henceforth something else had to be done to keep inflation at an accelerated pace so price hikes can continue.
The Green Agendas they want to plaster the western world with shall now continue.
This is perfect for the agende.
All the while they will keep interest rates elevated, raising them from time to time "to fight inflation" while small businesses will eventually struggle to refinance, giving opportunity to the big ones to consolidate even more power.
Ain't it great?

>> No.54164587

>>54164345
that was 2 years ago, check a calendar once in awhile

>> No.54164609

>>54163129
>Never even took macro 101

You're missing a key term, which is velocity, how often money changes hands in an economy. When the Fed buys tons of securities and the banks sit on the cash it doesn't result in too many dollars chasing too few goods.

How does your theory explain how there was a gigantic increase in the money supply from 2008-2014, a period in which M1 doubled, resulting in deflation or very low inflation, below the Fed's target, for that same period? Why did wage growth go negative and stay down, along with housing prices for a substantial period, despite the money supply doubling?

Fucked supply chains and energy markets from the war hit the supply side, as did a labor shortage. Obviously, the labor shortage was never that acute. Real wages climbed for a bit, with the lowest earning 40% in the US doing the best they have in half a century, but then real growth flatlined. Even at the height of the shortage, companies were raking in record profits and wage growth was still not that robust.

But having the entire service sector get laid off at once, and then all the restaurants going back out for wait staff and bar tenders at once, at the same time China was shutting down factories and so reducing the supply of durable goods, while many Boomers retired early, definitely helped lead to inflation.

The drastic reduction in migration also probably helped low income earners quite a bit.

>> No.54164713

>>54161724
Fed is definitely hiking .25 next week and will talk about fighting inflation that they literally created in the past week. Fucking joke.

>> No.54164851

>>54164609
INFLATION STARTED TO RISE BEFORE THE WAR YOU IDIOT

>> No.54164880
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54164880

>>54164609
The funniest thing about the "labor shortage," is how easy it was to get plebs frothing at the mouth about how they were being paid too much.

The entire bottom half of the income distribution (over 75% of unmarried Millennials and Zoomers) earns 12% of total income (the top 1% earns 27% of all income now, while the share of all income that comes from labor, as opposed to capital gains, is creeping towards below half in wealthy nations).

Yet people were going ape shit about McDonald's posting $18 an hour jobs. Wage growth for the majority of Americans did better in the aftermath of the pandemic than at any time since the 70s, and the bottom 50%'s share of all wealth shot up.

But then inflation hit, and while the lower class and middle class still had gains outpacing inflation for several months, the upper middle and rich saw real wage decline, something that hasn't happened recently.

Suddenly there was a huge problem. And it had to be some guy at Walmart getting paid $16 an hour... even though pooling all these people's incomes together, half the country, still didn't crack 15%.

It couldn't possibly have been the fact that we outsourced all our production to China and that China was going in and out of full shut downs, or that consumer habits radically shifted to durable goods during the pandemic and took a while to come back to services.

I will allow that labor costs did squeeze some industries, but the lower to middle class going from up 4% in their share of wealth is not the main cause of inflation.

Networth is even more wildly unbalanced due to gains on capital and the effects of decades of low rates on asset prices. Boomers have been tricked into thinking their shitty $400,000 401K makes them real players in the market, and that they win when stonks go up, despite the fact that the top 1% holds 15 times more wealth than the bottom 50%. Hell, 90% of all wealth in the US is held by the top 10%, with that also weighted heavily to the top.
.

>> No.54164885

>>54164609
The problem with you idiots is you never feel like you need to quantify anything. and you lie when you do try.
M1 did not double from 2008 to 2014, it went from 1400 to 2200 over 4 years, when a housing collapse had already happened. that's 57%

from 2008 to 2012 m2 rose from 7400 to 9700, a 31% increase.
from 2020 to 2022 m2 grew 40%.
that's over twice as fast. and m2 isn't everything there was even more printed

i'm not here to write essays, I can't explain all nuance in 2 sentences.
the most important fact is the fed wants high inflation to get rid of the debt, printing money does that.
in theory if M2 rose gradually to align with rising population and productivity it could be net neutral. but gaining that perfect balance is never what they wanted. they want maximum taxation through inflation and congress doesn't even have to vote on it

If your retardation is correct, inflation will stop spiking up now. If I'm right, its going to spike back up in the next few months as the problem was too much money printing, and they started printing again. not some "supply chain" issues that have long resolved.

The housing market has not crashed, and they're already turning the printer back on. but who knows maybe the fed will zig zag again 3 months from now when inflation is back at 7%

>> No.54164899

>>54164851
No one said the war was the only cause of inflation dumbass. Respond to the other points. Why was there no inflation last time M1 doubled?

>> No.54164938

>>54164167
Retard

>> No.54164970
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54164970

$15 footlongs in 2months

>> No.54164977

>>54164885
Start of the crisis, Oct 2008, $1,462, end of 2014, $2,941.

https://fred.stlouisfed.org/series/M1SL

Shit, fuck Macro 101, go learn arithmetic.

>> No.54164981

>>54162546
>that cup and handle
OOOOOOOOOOOOOO

>> No.54165009

>>54164885
Go look up what M2 is dipshit and see how it moved as M1 surged in 2020.

Don't opine on shit you dont even have freshman level knowledge on and get butthurt about being called out on it.

>> No.54165016

>>54164977
>ignores the core point just shifting where you counting at the end of the year.
2020's printing was over twice as fast.

why am I not surprised a shill is so quick to ignore the central point of the post?

>> No.54165039

>>54165009
more irrelevant bullshit to distract from the central point. there's no good source that verifiably tracks the money supply, obviously they keep switching m1 (discontinued) to avoid people knowing how much insanity they're doing.

you're appealing to authority here, saying you need an official degree to understand supply & demand yet your niggernomics is the one that created 15% inflation

>> No.54165085

Isn't it weird how quickly the shill disappears, but if he comes back he'll do ANYTHING but address the central point that printing was over twice as fast!
more ad hominems, appeals to authority? its all so predictable

>> No.54165099

>>54162420
You are right in theory, if the money is not circulating it has no effect. But regardless it's giving them the option to push it into circulation. As people predict it will be, they spend more hoping to get ahead of it, and so this drives the inflation.

>> No.54165112
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54165112

>>54165009
The reason M1 is a hockey stick in 2020, while M2 was already rising extremely quickly and didn't change that much is because the money multiplier is a major factor in the actual amount of money in the economy. When the Fed buys bonds to recapitalize banks, taking securities that would pay them coupons instead, and banks sit on the money to pay depositors instead of lending, it can be the case that very little of that money actually goes into the economy.

The first half of this graph had inflation higher than what we have now. The second half, with similar growth in the money supply, is looked back on fondly as a period of predictable low-moderate inflation and rising real wages.

>> No.54165124

Ah, I get it, so the money supply didn't grow fast enough post 2008. Uhh, so why did even slower growth in the 70s and 80s coincide with very high inflation?

>> No.54165273

>>54165124
I didn't say the only way to create inflation was with printing money. But its the #1 culprit.
They left the interest rates below inflation rate.
So real rates were negative. Meaning money supply can still expand.
m2 supply
>march 1970 587
>march 1980 1500
>march 1990 3000
again shills trying to rewrite history, saying money supply growth was "slow" in the 70s. They tripled the money supply in 10 years.
Then they doubled it over the next 10 years.

is it any surprise that when money supply growth was over 30% in 2020 and the 1970s it led to the same outcome? what kind of moron would try to deny this conclusion?

>> No.54165324

>>54165273
So where was the inflation in the 90s and 2010s?

If your argument is "x causes y," it's not great for x to show up without y.

>> No.54165393

>>54165324
1990 to 2000
m2:
3000 to 4700
not even doubled.

2000 to 2010
4700 to 8500
not even doubled

Slowest rate of M2 growth in decades coincided with lowest rates of inflation (but still positive)

what a mystery!!!

>> No.54165498

>>54165324
do you have a mental illness. why are you confused about the fact that having more of something devalues it, there are 5 year olds who understand this.

>> No.54165567
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54165567

well this pretty much confirms ww3 is soon then. america isn't about to die but the rest of the world might

>> No.54165746

>>54164609
>drastic reduction in migration also probably helped low income earners quite a bit.
Ya lost me right at the end their chief.
Immigration only grew during the pandemic and skyrocketed once biden took office.

>> No.54165828

>>54164970
20 DOLLAR. 20 DOLLAR. 20 DOLLAR 5 INCH LONG!

>> No.54166774
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54166774

Isn't the Fed doing extraordinary measures because of the debt ceiling the republicucks are pushing for?
Maybe that's the cause?

>> No.54166823

>>54161724
>inflating your currency away to toilet paper to bail out trannies

>> No.54166863

It's over, get in gold and silver.

>> No.54168312

>>54163198
I live in a country with current inflation rating at 18.4% and let me tell you it's not because of any shortages.
They printed a hell of a lot of money and increased gibz. That's all it is to it.

>> No.54168561

>>54161724
They will just escalate the conflict with Russia and send the inflation to the sides of the conflict including the countries of Nato.
Yellen is just a jewish clown pretending to do and know anything at this point.
War and military are the dollar's strength.
Look as the escalation of the conflict with Russia will increase with inflation.
The drone attack news broke out right when the FED printed the 300 billion in one week.
There will be more inflation and more escalation.

>> No.54168605

>>54163602
Lmao Russia is a 160m population shit hole with an economy less than some of our states. Get a new excuse you stupid groomer.

>> No.54168773

>>54166774
no, that isn't related to this at all

>> No.54169040

>>54162498
Whose gonna collect?

>> No.54169160

>>54163007
Lockdowns would have never happened had the people and businesses not gotten gibs and helicopter money.

>> No.54169181

>>54163007
>the inflation of the past two years was caused by covid fucking up the supply chains

Fucking retard. Supplies got fucked because demand has increased significantly due to an increase in the money supply. More money chasing the same amount of goods = shortages and price increases. You fucktards are fucking retarded.