The $2000 helicopter money will not fuel inflation at all and is much more reasonable than the ECB's way. For most people, this amount is only a fraction of the lost income and compensates only to a very small extent the lost revenue to the local economy. Money given to large corporations and the artificially low interest rates fuel inflation sector by sector and is building up numerous bubbles.
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Precisely due to the fact that USD 2000 represents a fraction of the losses due to the COVID-19 crisis, the incentive policy will not stop being implemented, pushing society towards levels of inflation never seen before. Obviously, the large Wall Street institutions will take most of the monetary cut in fiat to acquire cryptocurrencies and buy back their own shares, a technique they use to give the impression that we are doing well. Thanks for your comment, greetings.
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I agree with this. Most of the data from large economies like Europe and Japan have shown almost no inflation even with interest rates at near zero for extended periods of time. There are even places with negative interest rates.
The United States is later to this game of persistently low interest rates and I suspect that this is going to lead to some inflation in consumer prices, but not nearly as much as people think. Manufacturing is on the rise right now and as long as production and worker productivity are creating goods and services in the economy at a rate that is equal to the production of the money supply then we shouldn't see much inflation in consumer prices.
All of the stimulus and QE so far has targeted big businesses and that is why you do see inflation in asset prices like stocks, bonds, gold, homes, and even cryptos. The large bitcoin crash a couple of weeks ago was precipitated by a strengthening dollar.
Early signals for inflation will be rising commodity prices--especially oil, increases in the Producer Price Index (PPI), rapid rises in consumer spending / consumer confidence, and low business inventories.
A lot of people seem hawkish on the inflation of dollars, fed QE, and monetary stimulus while simultaneously cheering on Crypto Airdrops, ICOs, and crypto mining. The crypto world prints like crazy and people seem dovish on this. I mean what makes an "Airdrop" any different from "helicopter money"?
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The result of endless money printing when done by all major currencies including the world's reserve currency is not classic hyper-inflation.
It is massive increases in the value of anything scarce (especially BTC and other quality crypto) followed by sudden, wholesale collapse of the entire financial system, as trust in fiat currencies disappears.
The process is already well underway.
Looking for signs of classic inflation is like checking for bed bugs on the Titanic.
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Bingo!
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