M2 money supply turns positive | Bitcointalksearch.org

WillyAp

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Quote from: stompix on May 08, 2024, 12:35:59 PM

Everyone goes bananas on those and then five years later they still wait for the crash and recession that is not there!

The effect of social-media, someone post something and an hysterical fellowship takes it further.
Social media is not the family friendly network anymore, its a fake news or news born of ignorance.

dansus021

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The Fed has restarted printing money damn I just laugh after watching this and am sad at the same time what are they doing now printing more money WHY?

More money and inflation are what the price may need now to rise strongly.
Will this have an impact on Bitcoin? Definitely yes these are gonna have an impact in Bitcoin more inflation is gonna bring more people to join in the crypto industry, you can take a look the growing number of Bitcoin holders own by a public company https://www.coingecko.com/en/public-companies-bitcoin this is just a public company not a private and then Bitcoin ETF in the US only what about Europe Hongkong Australia and another country

stompix

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I'm surprised that everyone is saying this means printing money, oh no the dollar will crash and so on, do you guys actually know what the M2 supply is?
M2 is not just coins and banknotes, it's also money in the bank, money that has an interest rate, how do you think the money supply would have kept going down forever when the economy grows and you want to disinvest money into deposits?

Everyone goes bananas on those and then five years later they still wait for the crash and recession that is not there!

Quote from: Darker45 on May 08, 2024, 05:12:25 AM

Regardless, however, of the temporary expansion and contraction of the money supply, if we take a couple of steps back, we will see that the supply is actually growing continuously.^[1]

This is also a bit misleading fact because it ignores economic growth.
Take China for example:

A better comparison would be looking at relation to the GDP
https://fred.stlouisfed.org/graph/?g=eTtE

And suddenly things stop being so dramatic, right? Wink

HideYourKeys

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Money printer go brrrr (I always wanted to say so). We are back on track then...

DeathAngel

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Quote from: Yamane_Keto on May 03, 2024, 12:17:35 PM

The Fed has restarted printing money

https://twitter.com/BitcoinNewsCom/status/1786357540609315258

More money and inflation are what the price may need now to rise strongly.
Will this have an impact on Bitcoin?

Most likely it will have a positive impact on the Bitcoin price but it always takes a while for these things to filter down & have an effect on markets. We are in a bull market already, admittedly early bull phase but this will add fuel to an already simmering fire.

Fortify

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Quote from: Yamane_Keto on May 03, 2024, 12:17:35 PM

The Fed has restarted printing money

https://twitter.com/BitcoinNewsCom/status/1786357540609315258

More money and inflation are what the price may need now to rise strongly.
Will this have an impact on Bitcoin?

That is an interesting fact and is probably a good indicator for the wider global economy. We may frown at it and ridicule money printing, but in those peak years we had some of the best times economy wise and most of them cover periods where there was actually low inflation. That indicates to me that the two are not intrinsically linked together. However it may have a positive effect on bitcoin because they are now in ETFs, meaning it is much easier for money to flow into this asset. When the money printers start, it can mean all that cheap money starts going back into more adventurous assets and inflates the price of them.

WillyAp

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Quote from: Yamane_Keto on May 03, 2024, 12:17:35 PM

The Fed has restarted printing money

Will this have an impact on Bitcoin?

Depends how much got lost, taken out of circulation.
Can't find any graph on the fly, though.

Franctoshi

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When more money is printed you are talking about more liquidity here, and where do you think those money would melt into? of course Bitcoin and Gold Which is the most popular investment opportunity of our lifetime. Money printing was one of the main catalyst of the previous Bull market that saw us reach way 69k. Sure this will definitely have a positive impact on the price of Bitcoin, and secondly institutional investors already know the resultant effect of money printing is inflation at last and no wise investor would want to fold his hand and watch his money worth less over time, they would rather put it in Assets like Gold ,real estate and Bitcoin.

davis196

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The US federal budget deficit is more than 1.4 trillion dollars. What else do you expect? I'm surprised that the Federal Reserve had stopped printing money. I wouldn't pray for higher inflation and more money printing to boost the BTC price. Higher inflation simply means that fiat money is becoming less valuable in comparison to Bitcoin/crypto. There's no direct short term correlation between US money printing and the BTC price growth. Back in 2022, the US government was still printing money, but the BTC price dropped from 45K to 17K USD.
Also inflation is being measured in a weird way by the US statistics. When an item becomes 15% more expensive, 14% can be written off as an 'increase of quality' of the item, while the remaining 1% is considered "inflation". This is how a country could artificially lower it's inflation levels.

Darker45

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That picture only shows what happened in the past 5 years. There's a little more than a year of negative figures, yes, but this isn't a big deal. We need to remember that there was also a huge spike in money printing during the pandemic. Those were money printed out of thin air. There seemed to be an urgent reason for that. So it's only a matter of time when the supply will have to contract.

Regardless, however, of the temporary expansion and contraction of the money supply, if we take a couple of steps back, we will see that the supply is actually growing continuously.^[1] As a result, the value will also be going down continuously. And since Bitcoin's price has an inverse relationship with fiat as it has a fixed supply, it's price will also continuously rise. Or so I believe.

[1]

https://fred.stlouisfed.org/series/M2SL

btc78

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Quote from: bettercrypto on May 04, 2024, 03:11:29 AM

Isn't it true that when you print a lot of money, the country that prints it has a tendency to have problems? because it is possible that the value of their currency will decrease in that case? Please correct me if my interpretation or understanding is wrong on this matter.

No you are correct that is because if a country is printing more money therefore increasing the supply of their money but their goods and services have no equal supply then the price of goods will increase and the purchasing power of their money will decrease

Quote

unless a country has a backup of other assets like gold.

As far as I know, no one uses good to back their currency up anymore.

Quote

Now, if we are talking about us, if they do that without having any backup gold, and then they will print too many dollars, won't this lead to the collapse of their dollar? I'm just asking.

Printing more money and insinuating a little inflation wouldn’t crash the dollar immediately in fact slight inflation can even stimulate economic activity hence it’s a little healthy sometimes.

mindrust

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Quote from: bettercrypto on May 04, 2024, 03:11:29 AM

Quote from: mindrust on May 03, 2024, 12:34:01 PM

As expected. Printing money is the main job of a central bank. They can only stop the printer temporarily. The government has to spend money. Lots of money. If they don't print it, they will go bankrupt. (They will go bankrupt slowly when they do) That's the only choice they have.

img width=600]https://www.talkimg.com/images/2024/05/03/ryduq.gif[/img]

Uk/Ru war certainly left a hole in the US budget.

Isn't it true that when you print a lot of money, the country that prints it has a tendency to have problems? because it is possible that the value of their currency will decrease in that case? Please correct me if my interpretation or understanding is wrong on this matter.

unless a country has a backup of other assets like gold. Now, if we are talking about us, if they do that without having any backup gold, and then they will print too many dollars, won't this lead to the collapse of their dollar? I'm just asking.

The dollar collapsed long time ago. In 1971 when Nixon removed the gold peg, it collapsed. Since then the USD is on borrowed time. Dotcom/mortgage crisis were the additional signs but the FED is trying to delay the inevitable by print more.

Another important thing is, the majority of the worldwide trade happens through the USD. That means almost every business keeps their books in USD. They calculate their debts and receivables in USD. So it will be catastrophic if the USD goes down suddenly.

That’s why these businesses should step away from the dollar slowly. One step at a time. The dollar died long time ago, it is just we haven’t seen the real outcome of its death yet.

World War III will be the inevitable result and looks like we are getting there.

CODE200

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Quote from: bettercrypto on May 04, 2024, 03:11:29 AM

Isn't it true that when you print a lot of money, the country that prints it has a tendency to have problems? because it is possible that the value of their currency will decrease in that case? Please correct me if my interpretation or understanding is wrong on this matter.

unless a country has a backup of other assets like gold. Now, if we are talking about us, if they do that without having any backup gold, and then they will print too many dollars, won't this lead to the collapse of their dollar? I'm just asking.

That should be the case, more money means less value for that currency that's printed but US is a little different than the rest of the world because they're the top global currency used by a lot of markets all over the world to do international trades, so USD is sort of immune to the problems of hyperinflation caused by the incessant money printing by their mint, other countries are going to be affected by this problem of US if they ever experience hyperinflation, maybe when the time that it's not the top currency that's used to trade in the global market, we would probably see something different, we could witness the US collapse in of itself or resorting to being open about being an arms dealer for both sides of any conflict because they're going to need the money.

peter0425

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Quote from: Yamane_Keto on May 03, 2024, 12:17:35 PM

More money and inflation are what the price may need now to rise strongly.
Will this have an impact on Bitcoin?

Bitcoin is not backed by anything not even the central bank so whatever the central bank does it generally has no impact with bitcoin. Inflation or the value of a fiat currency does not affect bitcoin and vice versa however a fiat currency's value lowering down may affect how people of that nation act hence looking for other alternatives to hold their money in. If they deem bitcoin more valuable than their local currency, then that might just affect the movement of bitcoin.

bettercrypto

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Quote from: mindrust on May 03, 2024, 12:34:01 PM

As expected. Printing money is the main job of a central bank. They can only stop the printer temporarily. The government has to spend money. Lots of money. If they don't print it, they will go bankrupt. (They will go bankrupt slowly when they do) That's the only choice they have.

Uk/Ru war certainly left a hole in the US budget.

Isn't it true that when you print a lot of money, the country that prints it has a tendency to have problems? because it is possible that the value of their currency will decrease in that case? Please correct me if my interpretation or understanding is wrong on this matter.

unless a country has a backup of other assets like gold. Now, if we are talking about us, if they do that without having any backup gold, and then they will print too many dollars, won't this lead to the collapse of their dollar? I'm just asking.

Don Pedro Dinero

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Quote from: Yamane_Keto on May 03, 2024, 12:17:35 PM

Will this have an impact on Bitcoin?

Yes, but the impact it will have will be partly false. When prices of something rise, it may be because demand exceeds supply, because of the effect of monetary policy, or both. I think that in the future the demand for bitcoin will continue to grow, so the price will also grow, but as central banks will not stop printing, except for a few small breaks, the price will continue to rise in nominal terms but not in real terms.

blckhawk

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Well, as this man has said in the interview, we have an infinite amount of money and the federal reserve would never lose a lot of money. I guess that's to be expected if your country is currently funding two wars and you want to make sure that you're getting the best interest and testing all your new weapon systems there to later sold it at a really big profit, they've run out of taxpayers money a long time ago so I'm not really that surprised that they're doing it again after all, why would you not abuse that glitch when the money that you're borrowing comes from your own reserve right? That's why the US can get away with that trillions of debt without getting to the point that they're going to collapse as a country.

Source: Yahoo Finance

adaseb

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They again can’t seem to get inflation under control. The CPI looked like it was stalling and would of achieved the 2% target but it’s been ticking up the last few months. They blame it on the cost of energy but we all know that is not the only factor.

And you got the government who can’t stop printing money. And you got the federal reserve which has to make the tough decision on whether to lower rates or not. Lower rates and inflation goes up or leave rates where they are since it’s not doing anything to combat inflation.

MusaMohamed

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Quote from: mindrust on May 03, 2024, 12:34:01 PM

As expected. Printing money is the main job of a central bank. They can only stop the printer temporarily. The government has to spend money. Lots of money. If they don't print it, they will go bankrupt. (They will go bankrupt slowly when they do) That's the only choice they have.

They don't stop printing new money to their economy, only halt if for a while but will resume their work later.

By continuously money printing, they create inflation, can not control it and their citizens can recognize it through their expenses for buying things. Because purchasing power of the US. dollar drops with time.

Purchasing power of the U.S. Dollar over time

STT

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Their best target is inflation, its the long term average we should expect but I dont know its the Federal reserve exactly in any one move or an accumulation of all their actions. Together the actual rates are influenced by expected policy in future, the ECB has moved to ease its policy and it might just be the market overall is expecting an end to higher rates going forward from this year. Stock and a few other markets look forward rather then reflecting exactly what is happening now so I think that is part of it.

We already know they cannot repay debt with hard money, the policy for that would lead to an entirely different government policy, monetary policy and society overall. At present we have deficit budget spending fueled by long term and thats all balanced by inflation to the detriment of the common worker.

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