Comment on Has there been a significant move to cryptocurrency in Canada over the last few days?
sj_zero@lotide.fbxl.net 2 years agoI absolutely wouldn't say there's no ideological buyers. There's even people who buy it with the intent to trade it as a currency. It's just that those individuals are in the minority.
I called stagflation about 2 years ago back when governments were first shutting everything down and printing a bunch of money, and I think we're on track for that. We've got leaders trying to stimulate an economy that's already at the highest output it can possibly be given the massive worldwide restrictions and disruptions. I expect further inflation, and unless central banks intend to nationalize all debt, I expect at least some bonds yields to rise a lot because otherwise nobody will want to buy bonds with a -7% real yield.
goldenballs@wolfballs.com 2 years ago
The Fed is not a central bank, its an inflation expectation soothsayer... https://m.youtube.com/watch?v=b8uF8r0r0Fc
There is not the extent of inflation that people believe. There are price hikes, and there is some leakage of expanded bank reserves, but for the most part, ...because money is created by primary dealer banks creating credit (and thus money) for NBFI; and, ...because QE us gov/treasury debt/bond buying pushes prices of bonds up and yields down; and, ....because money markets set nearzero interest rates by betting on economic activity flatlining under the weight of gotesque public (i.e.: federal/govt) and private (i.e.: corporate and personal) debt, the fed has to follow, and pretend it's doing something (and by implication pretend that it knows what its doing).
The problem is the debt and the demographics, which are deeply constraining for the global economy. I start to see that the whole energy market is driven boomers again trying to ensure that they get everything, and to hell with everyone else. Both energy snd land will be used as proxies for indentured labour by the young to pay for the lifestyle of the old.
I don't see "further inflation", i see extended lockdown price gouging to replace falling earnings, but consimer disposible income drying up in the face of it. Just stagnancy and depression. You can see in Japan the social impact on birthrate and motivation and socual isolation due to being priced out.
For bond yield to rise, the market-distorting bond-buying by the fed has to end, and they have to sell to flood the bond market with cheap bonds, and require NBFI to buy some to keep interest rates from being driven too high and collapsing markets and compressing government budgets.