FX market intervention won't be announced in advance by Japan's finance minister

Started by OZER, Sep 14, 2022, 03:27 PM

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If they try to fix inflation the economy crashes, if they let inflation go, the economy crashes, they are stuck in a box with no way out


Our raises already got sucked away.. We're tired of getting screwed so we decided NOT to buy much at all just the basics screw Chinia and the GREEDY corporations who make record profits and screw the employees



Go to Harvard for running a legalgrey pyramid scheme on planet scale.

Buy and Hold! They eventually have to buy back! When? We don't ever really know but I'm holding until the freaking BOOM!


i had the opportunity to invest in Luna, a friend of mine was really into it, fortunately i didnt trust the project and did not buy any Luna :-)


This  misses the core issue, and that is insane amounts of money being printed. Past valuations simply don't matter anymore

They're talking about run-of-the-mill inflation driven by wage-price spirals, and saying that's how you get an inflationary spiral. In my mind, that's not the only way. We have a fiat currency and it's value is really derived from people's faith in it's value. You can print money and encourage borrowing etc, but much like stock market bubbles, there is a tipping point in there when all the feedbacks turn from negative to positive.  Normally, you hold money, it holds it's value, there's no real push to gain or spend it. If you think inflation is going to increase, it now becomes a hot potato that you want to spend as soon as you get it. You do this by buying useful assets like houses, land, food, things you need. When everyone does this it drives up the price, which would normally dampen demand, but if the expectation that money will continue losing value and the price will only increase, then the price doesn't matter anymore. Sellers can ask arbitrarily high prices. But who's going to sell into this and accept that money? Thus supply goes down at the same time demand goes up, further exacerbating the situation.  The government has been pumping new money into the economy to try and stimulate it, yet velocity stays low. Who needs to spend all that money under normal circumstances? But what happens when it all starts losing value? All that "cold" money suddenly turns hot, and the *effective* money supply suddenly increases. Meanwhile, everyone is also incentivized to borrow as much as possible to "short" the currency, further increasing the supply. But who wants to lend into this? The credit market slows, and the government steps in as "lender of last resort" again....using printed money.  Meanwhile, the massive amounts of money tied up in the stock market suddenly need a new home. I mean, who wants to hold a stock when all you can get out of it is increasingly worthless money. You paper gains are impressive, but it's only a reflection of the fact your asset is losing value, because the only value it has is denominated in dollars (rather than any kind of tangible use).  I mean it goes on and on. Wage-price spirals may be a part of 'normal' inflation but they don't really play into hyperinflation.