Topic: The stock market prices are fake ..hyperinflation is coming soon (Read 529 times)

how does that suggest hyperinflation is coming?

the QE, cash injections, and all that are intended to offset the deflationary effects of the economic shutdowns. central banks are trying as hard as they can to cause inflation, yet most signs still point to very low inflation and possibly net deflation this year.

The central banks of all countries continue to print money due to the economic crisis that has occurred today. With these coins, which are continuously and unlimitedly printed, the current money supply is expanding and inflation or hyperinflation is expected as a result of this expansion. It is a fact that after this money, which is printed free of charge, is distributed to the public, it returns to stock markets and similar markets. The high demand resulting from this situation causes the prices to increase, but it also affects the loss of cash money. Personally, I think there will be huge problems for these reasons in the coming years.

The biggest example of why stock market prices are fake is the drops that keep on happening. Remember the 2 trillion dollar tax break Trump gave to companies just 2 years ago? That was a big deal because we are talking about federal government having 2 trillion dollar less tax and considering that is 10% of all the USA debt it was a huge drop.

In return it was expected of companies to grow and become huge and offer more jobs and open more places. What happened? Just 2 years later all of that tax break income companies had eradicated because of a crash. They could have reinvested that multiple times to make a huge income but what they did was pay themselves a huge check. So, all the money made and all the increase in stock markets during the past 2 years thanks to the big tax break, all gone now due to one crash.

I think not to hyperinflation.  What I'm seeing is that in western capitalism at least, central treasuries now have a fairly good computer simulation of what will happen to shop prices next quarter as a function of how much money they issue.  So they issue enough to keep things steady, and in a society of idle spenders and furloughed shop assistants.  I suggest that sane economics ought to have seen rent and equities and dividends here collapse to prices aligned with median world salary (China was 80k yuan per annum last time I looked; about $1k per month) yet the rent on the meanest flats around here cost that, implying that in the absense of money printing, and for our factories to end up working just as hard as theirs, our rent should need to fall about x3.  By the way, should we be designing the next generation of homes to be nil CO2 and much lower cost than the last?  Furlough payments and prohibition of eviction (even for shop owners who were not selling anything last year) appear to be designed to prevent deflation to rational from happening.  It is even against the law (thanks to the EU human rights clauses) to offer to employ someone around here for 48 hours per week at $1000 per month.  I suggest that govenment free money only filling in excessive rent is why we are not seeing inflation nor deflation, and that is why I'm not running a factory making any of the honest products which I'd figured out how to make efficiently.

So I think that we won't see 1929 Weimer style hyperinflation in the West.  We'll get years of market distortions and contrafactual incentives instead.  And as usual, those tend to prop up the fictional stock market prices, and as usual the brokers will cry foul if ever the pricing should fall towards rational, even if only for a day.

For Bitcoin that would be neither positive nor negative.  21 Million Bitcoins remain worth the same as All The Real Money In the World.  I'm still waiting for the $ shop to notice.

Printing money is always a necessary measure, and will lead to negative consequences in the economy. I hope that the authorities can mitigate the consequences. There are too many dissatisfied people among the population.

Stock market bubble and hyperinflation are both result of printing to much money. We will not have hyper inflation before negative interest rates. But it will happen really soon.

I agree that Dow is usually not that fluctuative that had happened recently. Also it may be possible that huge amount of liquidity is pushed and pulled back within a very short period of time. But it doesn't really mean that hyperinflation is coming. Such kind of fluctuations can happen for various reasons. It may be liquidity push, may be announcement of a stimulus or may be due to positive sentiment about the overall economy. Also Money printing can't always lead to Hyperinflation.

Do you have a proper justification to believe that Hyperinflation is coming?

Hyperinflation is coming that much is a given however many have predicted that it will come soon and it has not happened yet, it seems to me governments have found a way to extend the period in which they can keep printing money, the only problem is they seem to think they have mastered it and they can keep doing this forever, and as we know that is not possible, however I am not so sure I will use the recent movements of the market as evidence of this, if I was trying to show that hyperinflation was coming and that the markets were manipulated, what better example than the 11 year bull run of the stock market which was the longest in history and that has just ended?

From Feb 20 up to March 20 people selling like crazy
March 20 Dow Jones was at 18577 now ,from March 21 to June 08 somebody was buying like crazy ... how has the power to buy like that? ask yourself ...Tip : first 3 letters Gov

Hyperinflation just wouldn't make sense imo. We could see a month where the current printing reflects on inflation but it should only be up for. A month or two (I think the UK has managed to hit 17% inflation before over the year) we're currently at 0.9%... The US are probably close to the 1% too as apposed to 1.7%.

When money comes out of a market it has to go somewhere, I doubt market movements of a few % are really any form of illegal manipulation. They're just a drop and a rise.

If we look at the dow jones index
https://tradingeconomics.com/united-states/stock-market

You will see that from june 5 to june 11 it went down from around 27000 to 25000 ,now it went up to around 26500...somebody is injecting a lot of money in the stock markets around the world ...
The printing machines are working non stop ... i think we will go in to hyperinflation very soon ...