Covid 19 protecting value of money - page 2.

Silberman

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Quote from: magneto on January 15, 2021, 02:02:25 PM

Whilst I do not believe in the fiat system in general terms, this makes no sense.

It is true that COVID is suppressing consumption and therefore inflation in a lot of countries, which means that inflation figures haven't actually jumped that much even though there have been several rounds of economic stimulus by fiscal and monetary means in most countries (stimulus checks, QE, etc.)

But how is it "protecting" the fiat system? It just isn't. Sure, inflation hasn't jumped during COVID due to low consumer sentiment, but have you considered the fact that QE and other stimuli wouldn't have even been warranted without COVID?

The real concern with COVID on the economy should be that it is propping up asset prices such as equities because excess liquidity has gone towards speculation more than anything else. Not that it is somehow "safeguarding" the value of fiat.

And I will add to this that inflation is going to come back with a vengeance once things begin to resemble somewhat what we were before the pandemic, that is when we will begin to see important levels of inflation, while a fast collapse of the fiat system is probably not going to happen because governments are going to do everything in their power to keep it in place I think the pandemic has given a death blow to the fiat system and its collapse now is inevitable.

RealMalatesta

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Quote from: magneto on January 15, 2021, 02:02:25 PM

Whilst I do not believe in the fiat system in general terms, this makes no sense.

It is true that COVID is suppressing consumption and therefore inflation in a lot of countries, which means that inflation figures haven't actually jumped that much even though there have been several rounds of economic stimulus by fiscal and monetary means in most countries (stimulus checks, QE, etc.)

But how is it "protecting" the fiat system? It just isn't. Sure, inflation hasn't jumped during COVID due to low consumer sentiment, but have you considered the fact that QE and other stimuli wouldn't have even been warranted without COVID?

The real concern with COVID on the economy should be that it is propping up asset prices such as equities because excess liquidity has gone towards speculation more than anything else. Not that it is somehow "safeguarding" the value of fiat.

Interestingly inflation levels increased a ton in some nations for the exact same reason and that is why this is all wrong. You know how it increased? Since people couldn't work, and since people couldn't make money, instead of selling 10 things for 1 fiat and make 10 fiat, they started to ask for 10 fiat for 1 thing to make 10 fiat.

This is just an example and numbers are made up but since people couldn't spend too much money on bigger things, the only thing money went to was needed things and that made everyone poorer and asking for more and more money, which is the reason why there was inflation. That is how happened in my nation and that is what happened even in USA as well for a while, during summer specially everything was a lot more expensive. You do not think that going to cinema in the future when all of this is over will be same price? It is going to be a lot more expensive, those places didn't even made a cent during this period.

rollingdice

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Quote

If economy is locked down you can print a lot money

Damn no!
The Fed uses extra money printing as a tool to rescue the economy amid the pandemic. Or where was "stimulus" money coming from?
Estimates are that 22% of the circulating US dollar was printed in 2020.

shushu9977

full member

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Covid 19 is good for rich people, but it is not good for poor people. If economy is stopped, then it is difficult to lead our daily life. So, how can we say that covid 19 is protesting the value of money.

shoreno

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i havent thought of that but like you i also have a negative impressions during the covid came , i think that it was a business strategy or something . covid dont protect the value of fiat but it serves as an alibi , effects are going to be feel by everyone is theres a problem in regards to fiat .

if you dont like fiat now you dont need to force yourself using it but theres many alternatives you can use now , currencies that are not manipulated by banks and governments . you know what im talking about

Majharul Saiif

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BountyMarketCap

It can't be said that covid-19 protecting the value of money. Because in the time of the pandemic, people living under the level of poverty getting the help of govt or any other source that makes the available money on a market that is spending lazy time. Rich people can face any type of crisis of money and after r pandemic, they will cover soon. Govt should not print extra money to face this pandemic they should face this crisis by using direct products that should protect the balance of money in a country.

magneto

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Whilst I do not believe in the fiat system in general terms, this makes no sense.

It is true that COVID is suppressing consumption and therefore inflation in a lot of countries, which means that inflation figures haven't actually jumped that much even though there have been several rounds of economic stimulus by fiscal and monetary means in most countries (stimulus checks, QE, etc.)

But how is it "protecting" the fiat system? It just isn't. Sure, inflation hasn't jumped during COVID due to low consumer sentiment, but have you considered the fact that QE and other stimuli wouldn't have even been warranted without COVID?

The real concern with COVID on the economy should be that it is propping up asset prices such as equities because excess liquidity has gone towards speculation more than anything else. Not that it is somehow "safeguarding" the value of fiat.

Silberman

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Quote from: LogitechMouse on January 11, 2021, 09:29:23 PM

It will only helps you if you are hedging your cash or you are invested into different investment but aside from that, I don't see COVID protecting the value of money.

In case you didn't know, Venezuela had its hyperinflation years ago if I remember correctly because of the government printing money massively to the fact that their money doesn't have value anymore. I still remember the time when I saw a picture of their money worth 100 Trillion and yet they aren't accepting it.

Government printing out money massively can cause hyperinflation especially to those countries who are developing. USA is printing massively thus, the value of their currency is slowly decreasing. If this continues then it will also continue to go down.

There is no way around it, governments are trying to justify their money printing policies with new theories arguing this can be sustained forever but the reality is different, at some point people are going to feel that the value of their money is reducing at an accelerated rate and then they will try to protect themselves from those effects, and in the case of the US I think the money printing will only accelerate, Biden is not even the president yet and he already promised 2 trillion dollars which most likely are all printed.

Sterbens

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Quote from: raidarksword on January 09, 2021, 02:22:54 AM

Inflation will be the outcome if the government print more money and the value of that paper will be meaningless and useless to all citizens. We might have negative impact of what covid brought us but it triggers new payment system like the uses of paperless and crypto payment system that everybody are using right now during these lockdowns we are experiencing.

This payment applies to cryptocurrency users. But on the other hand, those who don't really like crypto will have a big impact. Those who insist on using fiat money are constantly pressed on condition of a lockdown as long as the lockdown continues, gradually every citizen whose economy is below the poverty line continues to scream and ask the government to end the lockdown period. day traders who sell only drinks and bread lose 50% of their income. they even come home with insufficient income.
while the rich still feel safe and are fast asleep on top of their piles of banknotes.

LogitechMouse

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It will only helps you if you are hedging your cash or you are invested into different investment but aside from that, I don't see COVID protecting the value of money.

In case you didn't know, Venezuela had its hyperinflation years ago if I remember correctly because of the government printing money massively to the fact that their money doesn't have value anymore. I still remember the time when I saw a picture of their money worth 100 Trillion and yet they aren't accepting it.

Government printing out money massively can cause hyperinflation especially to those countries who are developing. USA is printing massively thus, the value of their currency is slowly decreasing. If this continues then it will also continue to go down.

Silberman

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Quote from: OpenCryptoSystem on January 08, 2021, 02:01:11 PM

Covid 19 protectong value of money

Yee...tht true ! Now everybody knows this
If economy is locked down you can print a lot money
As long as you make difficult people 2 get money
Yall good

Covid is good for wealthy people

That could only work if people were hoarding money but is that what it is happening? No, those that need the money used all the money they were given immediately, but what about the rest? They are investing in whatever they could find and that includes bitcoin as well as such that fiat is circulating and chasing products and services so it is not really being hoarded, so the price of everything is going up reducing the confidence in fiat currencies, and as such I do not see how covid is protecting fiat currencies at all.

sukmo

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Moonbet.io

If you think covid 19 brings good for some people. what about the fate of the small people affected by the pandemic so that they lose their jobs and have difficulty making ends meet.
Is this fair in your opinion?

Kakmakr

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Leading Crypto Sports Betting & Casino Platform

There is a lot of conspiracy theories going around about the Covid pandemic being used to hide "Fiat" related problems. Some people seem to think that Covid was introduced to push down the prices of over inflated Stock and share prices. (So that a select few, would be able to benefit from that, because they pulled their investment before the prices dropped)

Other people are saying that it was engineered to give countries like the USA an excuse to boost the "Fiat" system. (I think it is crap, because the country would not introduce something to virtually destroy the economy and jobs... just to pump toilet paper dollars back into the economy)

AniviaBtc

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Quote from: OpenCryptoSystem on January 08, 2021, 02:01:11 PM

Covid is good for wealthy people

Hell no! In the start of the pandemic, in some other countries which are in a third-world countries are really experiencing struggle. Those business who got closed are being bankrupt and experience economic crisis also, they are rich they can sustain their needs but their business or company becomes dead. This Covid-19 also brought mainstream to cryptocurrency investments and business are slowly recovering due to the fact that they already underestimating Covid-19 and reopen their companies and continue working with their employees again. Wealthy people can just sustain their needs but they are still having problems with it compared to those who really struggle so hard to become unemployed and don't have any budget to keep themselves alive during pandemic.

Husires

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The good for wealthy people always turn against them and their end is tragic. The economy is developed if there is good growth for the middle class, and then the rich will be able to naturally increase their wealth.
Covid will create economic distortions that may lead to many problems. Therefore, it is not good and the effects of inflation do not appear until after several years.

Covid 19 is not protecting value of money, it destroy it.

OpenCryptoSystem

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Quote from: verita1 on January 09, 2021, 04:57:19 PM

Covid19 does not protect the value of money.
On the contrary, due to the crisis, businesses are working at their medium capacity.
There are more expenses in the health networks of the world to relieve people affected by the virus.
There is less production in all sectors and we do not know how it will affect us in the immediate future.

As we have faith in God we know that we have a fertile land that as soon as we get out of the pandemic our fields will once again be more productive.

Yes covid protectimg are you not see this ?

verita1

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Covid19 does not protect the value of money.
On the contrary, due to the crisis, businesses are working at their medium capacity.
There are more expenses in the health networks of the world to relieve people affected by the virus.
There is less production in all sectors and we do not know how it will affect us in the immediate future.

As we have faith in God we know that we have a fertile land that as soon as we get out of the pandemic our fields will once again be more productive.

Mauser

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Quote from: OpenCryptoSystem on January 08, 2021, 02:01:11 PM

Covid 19 protectong value of money

Yee...tht true ! Now everybody knows this
If economy is locked down you can print a lot money
As long as you make difficult people 2 get money
Yall good

Covid is good for wealthy people

On the one hand printing money should actually increase inflation. But what we saw in the last 6 month is that inflation is not actually going up. People tend to save more money during the lockdown and are afraid to make big pruchases. As the rich people have most of their money invested, inflation is probably not a big issue here. Printing money is more an issue for the average Joe and losing purchasing power if they don't invest properly.

OpenCryptoSystem

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Quote from: itovault on January 09, 2021, 01:50:54 PM

But what happens when Covid19 ends and people want to spend all those dollars? Then we'll have the pay the piper of monetary printing.

This whay they dont open before they have solution.
Those who got no crypto or btc will suffer and pay for the piper of moneytary printing

itovault

newbie

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But what happens when Covid19 ends and people want to spend all those dollars? Then we'll have the pay the piper of monetary printing.

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