Is Hyperinflation Coming? | Forex Factory

  • Is Hyperinflation Coming?

    From pragcap.com

    Twitter lit up over the weekend when Jack Dorsey said that hyperinflation is coming. Dorsey is a very vocal advocate of Bitcoin and of course, also the CEO of two public companies, Square and Twitter. This is a pretty interesting prediction for a CEO of a large public company for several reasons: If he really believes what he said then he should, as a fiduciary to his shareholders, be advocating for far less USD exposure within his companies. Michael Saylor has developed the playbook for this. But Square and Twitter currently have over $10B in USD reserves, which would evaporate in the case of hyperinflation. If he ... (full story)

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RossEdwards
Oct 26, 2021 10:26am
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Can someone riddle me this?
In the middle of an energy crisis we apparently fail to see the link between Bitcoin/other crypto and energy demand.?
WTF are we wasting energy on generating a wealth token when industry , peoples homes and commercial premises are paying more because of this artificial demand?

World gone fkucing Lu-La.
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gat
Oct 27, 2021 7:31am
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What does BTC have to do with anything real? Energy prices are soaring because of artificially and purposely shrinking supply. Kill Keystone. Kill fracking. Kill the attendant natural gas. Energy goes up so transportation goes up so everything goes up. That is all real. BTC can bounce from 30k to 60k either way w/o affecting anything. The other thing that is real with real effect is covid having shrunk the workforce. US total employment was 162 million at the high in 2019. Now it's 153 with 2.8 on unemployment. Where's the other 6 million? Not dead from covid. Perhaps doing side hustles?
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harcos
Oct 27, 2021 7:43am
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Quoting gat
What does BTC have to do with anything real? Energy prices are soaring because of artificially and purposely shrinking supply. Kill Keystone. Kill fracking. Kill the attendant natural gas. Energy goes up so transportation goes up so everything goes up. That is all real. BTC can bounce from 30k to 60k either way w/o affecting anything. The other thing that is real with real effect is covid having shrunk the workforce. US total employment was 162 million at the high in 2019. Now it's 153 with 2.8 on unemployment. Where's the other 6 million? Not dead...
gat I think Ross was just referring to the massive amount of energy(electricity) that mining BTC uses and how that adds to the demand ergo raising the price
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skillz16
Oct 26, 2021 9:39am
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Quoting Vancarbon
It's already started . Courtesy of the Fed . If they don't taper and do it quickly their policies will dampen consumer demand so much that it'll be recessionary and no amount of printing will save the global economy . Let's hope the Fed do the right thing and taper then acknowledge their mistakes that devaluation is the cause of this inflation and not supply side issues
Why would they taper? They just can't.. I think the world ends at all close to negative rates, and everything needs to then be done VIA "risk adjusted" instead of actual rates since they will all be 0 or negative.

The reason why they don't is that the demographics suck: there are fewer boomers than everyone else. So inflation will be really low anyway because of that. And as rates go down, housing prices go up, and rents will go up - with more younger people having to becoming renters this will put natural "breaks" on actual spending since they won't have as much outside of paying rents.

But yeah, asset prices which DON'T and NEVER have counted in inflation... will go BANANAS! As rates fall. ha
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DaJoWaBa
Oct 26, 2021 10:29am
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Quoting RossEdwards
Can someone riddle me this? In the middle of an energy crisis we apparently fail to see the link between Bitcoin/other crypto and energy demand.? WTF are we wasting energy on generating a wealth token then industry , peoples homes and commercial premises are paying more because of this artificial demand? World gone fkucing Lu-La.
Excellent point.
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UKBanter
Oct 27, 2021 6:38am
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Agree with you guys my only critique Van post #2 I would replace "repaid" with "controlled".

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aquavox
Oct 27, 2021 4:19am
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Quoting RossEdwards
Can someone riddle me this? In the middle of an energy crisis we apparently fail to see the link between Bitcoin/other crypto and energy demand.? WTF are we wasting energy on generating a wealth token when industry , peoples homes and commercial premises are paying more because of this artificial demand? World gone fkucing Lu-La.
Firstly Ross , it is not "artificial" demand it is real demand ( albeit misplaced ) that is speculating ( seeking return on NFT's etc) for excess funds that have limited places to go.

The "Supply" side arguments being used to prop up or justify inflation are simply not true, sure we have world shipping container issues but that has been spawned out of logistics and c-19 containment issues not demand, demand is strong, but supply has been artificially obstructed. The real inflation and hyper inflation cause has been caused by QE and money printing. Energy, has been directly affected by China's shortfalls and the affects of the cartels.
But i agree on the need to get out of La-la land and back to Kansas before the bubble bursts.
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gat
Oct 28, 2021 10:34am
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Quoting harcos
{quote} gat I think Ross was just referring to the massive amount of energy(electricity) that mining BTC uses and how that adds to the demand ergo raising the price
Ok, I can see reading it that way. Does take a lot to mine but in the total demand does it matter any more than BTC itself does? Mining was going hot and heavy when crude was at 40 to 50. The shortages and chaos are all purposely manufactured.
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harcos
Oct 29, 2021 7:02am
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Quoting gat
{quote} Ok, I can see reading it that way. Does take a lot to mine but in the total demand does it matter any more than BTC itself does? Mining was going hot and heavy when crude was at 40 to 50. The shortages and chaos are all purposely manufactured.
I agree, there are a few supply chain shortages and chips etc but I think a lot of it is fabricated as an excuse to gouge consumers.
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Hassa9
Oct 26, 2021 10:11am
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Oil and bitcoins are the reasons behind this inflations and it is a cycle it will several months or years to turn 180 degree
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Muhammedfx
Oct 26, 2021 10:27am
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one thing I dont understand is why does every country is paralyed by US dollars, cant they have their own stand and work accordingly, why do they have to be under constant monitoring of USD only
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Trader#323D
Oct 27, 2021 12:27am
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The Covid is not over. So the monetary expansion is not over.
Debt and inflation are collateral damage, not intentional damage by Fed.
Economy need help, not libertarian BS.
Covid is worse than inflation and debt.
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