EURJPY: TECHNICAL ANALYSIS.

Started by OZER, Jan 02, 2022, 05:51 PM

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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.

I have 1300 share of pltr so far. Imma keep buying for the next 5 years every payday

If you think tech wont disrupt every aspect of our life I wont listen to you

Nope not when we keep printing all this $

Of networks like this reported the truth and facts instead of covering for the clowns in this administration then it could be stopped.

carl lost more like 1.9m usd

We're not centralizing congressman. Sorry man. You're all done.

Easy: Make Money more expensive (higher intrest) inflation falls, make money cheaper inflation rises. A lot of national banks do this for a century and it works!

How can you say the bubble popped, if Game Stop is still up 1000% instead of 2000%?

These are books art people !  With very little life experience !

BLACKS MEXICANS AND NATIVE AMERICANS 12 TRIBES OF ISRAEL WE ARE GOD CHOSEN PEOPLE THE REAL HEBREW ISRAELITES OF THE EARTH WE ARE THE REAL JEWS REPENT

I want to wake up one morning and find out that my portfolio is $4,000,000 . I know its possible

Raise rates and inflation is over, make money worth something!


Inflation is running out of control - sad to say