World economics money printer and fed assets prices problem

Darker45

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Quote from: 325btc on March 24, 2022, 08:47:31 AM

Quote from: Darker45 on March 24, 2022, 08:42:42 AM

I'm sorry but you seem to be dreaming of an alternate reality. There is always the possibility that an increase in interest rate will happen. But never will it be possible for the government to abruptly reduce as high as 80% of the entire money supply. If you could please share to us your explanation why such a drastic step would be made.

Forget about a war brought about by a shortage of cash. We will never have a shortage of cash. As a matter of fact, the existing fear is the opposite, that we are going to be flooded with too much cash.

You talk about this as you read on news and watch tv about inflation but i give 2-3 month and this inflation will be gone and we run in shortages of cash

You talk about inflation as if inflation is a temporary thing. Inflation has been around for hundreds of years and you are guessing it will suddenly be gone in 2 to 3 months? Why is that so? Are we now leaving the old economic system all of a sudden? Are we now having a paradigm shift?

My response is not because of the news that I am reading and watching but because of our fundamental economic design which includes inflation as an integral part.

325btc

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Quote from: Darker45 on March 24, 2022, 08:42:42 AM

I'm sorry but you seem to be dreaming of an alternate reality. There is always the possibility that an increase in interest rate will happen. But never will it be possible for the government to abruptly reduce as high as 80% of the entire money supply. If you could please share to us your explanation why such a drastic step would be made.

Forget about a war brought about by a shortage of cash. We will never have a shortage of cash. As a matter of fact, the existing fear is the opposite, that we are going to be flooded with too much cash.

You talk about this as you read on news and watch tv about inflation but i give 2-3 month and this inflation will be gone and we run in shortages of cash

Darker45

legendary

Activity: 2576

Merit: 1860

I'm sorry but you seem to be dreaming of an alternate reality. There is always the possibility that an increase in interest rate will happen. But never will it be possible for the government to abruptly reduce as high as 80% of the entire money supply. If you could please share to us your explanation why such a drastic step would be made.

Forget about a war brought about by a shortage of cash. We will never have a shortage of cash. As a matter of fact, the existing fear is the opposite, that we are going to be flooded with too much cash.

325btc

jr. member

Activity: 224

Merit: 5

Quote from: HeRetiK on March 24, 2022, 06:19:27 AM

Quote from: 325btc on March 24, 2022, 05:54:12 AM

If the fed will stop the money supply that much as they said will do rate hikes it means 80% of the money supply will be gone and we talking about 60-80% asset prices fall.

How do you come to this conclusion?

While rate hikes will make it less attractive to buy assets on leverage (ie. credit) it doesn't mean that "80% of the money supply" will be gone. It just means that the money supply will increase at a slightly slower pace, or at least that's what the Fed is hoping for.

While stock market prices will fall eventually the way they always do, it does seem that in a weird twist of fate both the pandemic and the war in Ukraine cooled the markets down a bit before they could get too far ahead of themselves.

Becouse its a lot money what they will decrease and even this huge ammount of money they produce even with this kind of money supply the btc is not even 60-70k price.

Imagine if its a lot less you can only imagine what will be then but people are not worry about becouse they dont know about fed and money supply and the markets functions but the fed is about to do something grazy its like putting brakes on car with full speed.

HeRetiK

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Quote from: 325btc on March 24, 2022, 05:54:12 AM

If the fed will stop the money supply that much as they said will do rate hikes it means 80% of the money supply will be gone and we talking about 60-80% asset prices fall.

How do you come to this conclusion?

While rate hikes will make it less attractive to buy assets on leverage (ie. credit) it doesn't mean that "80% of the money supply" will be gone. It just means that the money supply will increase at a slightly slower pace, or at least that's what the Fed is hoping for.

While stock market prices will fall eventually the way they always do, it does seem that in a weird twist of fate both the pandemic and the war in Ukraine cooled the markets down a bit before they could get too far ahead of themselves.

325btc

jr. member

Activity: 224

Merit: 5

We have problem one big problem.
If the fed will stop the money supply that much as they said will do rate hikes it means 80% of the money supply will be gone and we talking about 60-80% asset prices fall.
And this is what regular person dont know but people who knows how it works they know and biggest problem is there is no backup plan to support current economy and funds ready to hold up asset prices.
In this situation to hide that we dont have money the war is only solution becouse even when there is no war we will have money shortages i dont want tell when but soon i dont want you to panic.
But even there is no war it will be chaos complete chaos becouse money is finished the fed is empty soon.

Europe can last little longer but there is asset prices also too high so they dont have enough to keep up the assets.

And this is very serious problem that we are out of cash

Topic: World economics money printer and fed assets prices problem (Read 88 times)