i see that it was super overvalued around the middle of this month, and it seems to be experiencing a correction
if you zoom out to the 3yr chart, i'd say- with nominal CPI inflation- $5 seems about right for between 55 and 70lbs of corn (depends on how processed it is, it looks like)
and if you zoom out to "Max," it went absolutely bonkers in mid-2008 and mid-2012
i wish it was only 35%. literally over 70% 67% of all dollars that have ever been printed/entered circulation were created between Feb2020 and EOY2020
can't wait for that 300% inflation to hit; it has to eventually
it's all so tiresome
audit the fucking Fed
to answer your question directly, though- that plays a part and is de facto built into the price of all goods--whether they're meant for producers or consumers; so the short answer is "yes"
s: i should clarify, and i sort of did with an edit to the first point above. you probably read this somewhere recently. that doesn't exactly tell the whole story. see- with fractional reserve banking, and with loosened liquidity/cash-on-hand requirements for banks in order to remain protected under the FDIC, they can lend out somewhere between 9 and 10x whatever they have in on-the-books deposits. let's walk through a very simple example
most of what mnuchin liked to refer to as a "liquidity injection" went to banks. we'll low ball it and say that only about 7T went to banks, ok? 7/9 * 22% would be 17.1% of all dollars ever printed/created directly by the Fed, but the dirty little secret is- as i mentioned above- fractional reserve banking. and so you have 17.1% of all dollars ever created going to banks with the other 82.9% out there somewhere like domestic accounts, moving around the economy, sitting in crypto, and in off-shore accounts--whatever. that 17.1% is at least nontupled, giving you ~171%. you can see here that the nontupling has caused the original "injection" to automatically be contorted into a value more than double the other 82.9% which was the prior remainder; and so- that total comes out to 253.9(%), where we'll use that % as a unit. 171/253.9 gives you 67.35%, in real terms, and i was off by a little bit but will leave my original claim in strikethrough, of all dollars ever created in the last year alone
not so quick there, cowboy
i see that it was super overvalued around the middle of this month, and it seems to be experiencing a correction
if you zoom out to the 3yr chart, i'd say- with nominal CPI inflation- $5 seems about right for between 55 and 70lbs of corn (depends on how processed it is, it looks like)
and if you zoom out to "Max," it went absolutely bonkers in mid-2008 and mid-2012
Does that CPI account for the 35% higher money supply produced in 2020?
i wish it was only 35%. literally over
70%67% of all dollars that have ever been printed/entered circulation were created between Feb2020 and EOY2020can't wait for that 300% inflation to hit; it has to eventually
it's all so tiresome
audit the fucking Fed
to answer your question directly, though- that plays a part and is de facto built into the price of all goods--whether they're meant for producers or consumers; so the short answer is "yes"
s: i should clarify, and i sort of did with an edit to the first point above. you probably read this somewhere recently. that doesn't exactly tell the whole story. see- with fractional reserve banking, and with loosened liquidity/cash-on-hand requirements for banks in order to remain protected under the FDIC, they can lend out somewhere between 9 and 10x whatever they have in on-the-books deposits. let's walk through a very simple example
most of what mnuchin liked to refer to as a "liquidity injection" went to banks. we'll low ball it and say that only about 7T went to banks, ok? 7/9 * 22% would be 17.1% of all dollars ever printed/created directly by the Fed, but the dirty little secret is- as i mentioned above- fractional reserve banking. and so you have 17.1% of all dollars ever created going to banks with the other 82.9% out there somewhere like domestic accounts, moving around the economy, sitting in crypto, and in off-shore accounts--whatever. that 17.1% is at least nontupled, giving you ~171%. you can see here that the nontupling has caused the original "injection" to automatically be contorted into a value more than double the other 82.9% which was the prior remainder; and so- that total comes out to 253.9(%), where we'll use that % as a unit. 171/253.9 gives you 67.35%, in real terms, and i was off by a little bit but will leave my original claim in strikethrough, of all dollars ever created in the last year alone
pretty fucked up, if you ask me