51–60 of 409 posts
Our job in life is to engage in value creation. When money is decoupled from value creation, your long-term bet is that it will lose its value, as value creation is what actually matters in the “real” world. This is also why “crypto” (the asset class, not technology) is so corrosive, because it makes people who have done approximately nothing to create value in society, but who’ve enjoyed a massive boost in monetary…
Money is stored wealth, the ability to buy goods and services in the future. The problem seems to be that we live in a time of societal upheaval. The future of stored wealth becomes cloudier and more uncertain the further you go out in time. So, what is the best place to store wealth? Will my wealth be eroded by inflation? Will the companies I invest in become obsolete by technology or market-manipulating nation stat…
That is merely one function of money, and as the marginal cost of production plummets that role becomes less useful.
In a modern economy it’s also, for example, a signaling mechanism (arms-length communications tool), with pricing guiding production and effort.
Zero mention of the recent unprecedented fiat currency printing we've seen, nor the fact that every time since the Tang Dynasty when we have done this, it has led to very troubling times 12-18 months later. Everyone is gambling even if they dont know Crypto exists.
Ha. I was skeptical about the unprecedented bit but googling seems to indicate you are correct, at least for the US https://mobile.twitter.com/fgmr/status/1355105955982282752
The tweet you linked leaves out half the story, which is that money velocity is down greatly, thus the increase in money supply hasn’t caused rapid inflation.
https://www.stlouisfed.org/on-the-economy/2014/september/wha...
Our job in life is to engage in value creation. When money is decoupled from value creation, your long-term bet is that it will lose its value, as value creation is what actually matters in the “real” world. This is also why “crypto” (the asset class, not technology) is so corrosive, because it makes people who have done approximately nothing to create value in society, but who’ve enjoyed a massive boost in monetary…
How many people are actually getting rich with NFTs besides people who who are already celebrities/famous? Not many. The market is flooded now with NTFs. The overwhelming majority of listings do not sell or sell for little. A better way to make money is with 3x ETFs using options strategies, which I am working on. The performance of some of the major 3x funds such as TECL, FNGU, and TQQQ surpass even Bitcoin
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Ha. I was skeptical about the unprecedented bit but googling seems to indicate you are correct, at least for the US https://mobile.twitter.com/fgmr/status/1355105955982282752
You need to look at velocity of money in conjunction with the money supply to get the true picture: https://fred.stlouisfed.org/series/M2V The tweet you linked leaves out half the story, which is that money velocity is down greatly, thus the increase in money supply hasn’t caused rapid inflation. https://www.stlouisfed.org/on-the-economy/2014/september/wha...
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Have you noticed how your cash is buying fewer items than it did a ~year ago? My daily item costs are WAY up, which is really just saying the value of the cash is WAY down.
Yes, inflation is real, and since I’m on a fixed income I noticed that despite cutting out luxuries and limiting meat purchases, my groovy bill went up and I still lost weight.
If you are trying to lose weight, shifting away from sugary & processed foods & meat to high-quality fresh fruits, vegetables, nuts, etc. can definitely increase your grocery bill while reducing your weight in a very healthy way. Food bill may go down by going directly to farmers, but travel & fetching costs increase.
Or, it could be an unhealthy shift towards more processed foods, costing more in factory work & transport, and you are seeing real inflation.
So, insufficient data to indicate inflation or not.
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Add to that the collapse in wage growth and the conspicuous difference in the rate of improvement in Asia vs in America. The World Bank says [0] the US GDP per capita has more than doubled since 1996. In real terms. Computers have been a big boost, but it seems a tough sell that the US population has actually seen a real doubling in that time. That is saying a dude with a house in 1996 is a dude with 2 houses now. Is…
> Is that arguably true? Where is the stuff? In the hands of increasingly few people, namely tech billionaires. Amazon for example is worth more than all but 18 of the entire world's sovereign nations' respective GDP. The economy has grown tremendously, in measurable terms, but that growth has almost exclusively gone to the 0.1%
And also much of the 'stuff' is here, or converted to services. 25 yrs ago, approx no one had 55"+ tvs, internet connection was a minority, and media eas collections of CDs/Videotapes. Now 'net connections are near-universal, and it is all streaming. Cell phones were just beginning & expensive, now everyone has a powerful computer in their pocket. We don't have two houses, but the ones we have are worth twice as much. Cars are much better developed than 2 decades ago, snd we'll soon have ubiquitous electric cars...
All of it needs to be more evenly spread. Just look at the charts of portions of funds going to labor vs capital.
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Doesn't something feel wrong about the post 2008 "boom"? Theoretically the economy is doing great but you have constant social upheaval, a generation where many are still living with their parents, and the need for constant central bank stimulus in the form of cheap credit. I sometimes wonder if we've managed to mask the real state of the economy by pumping the metrics to make it look like it's fine.
Add to that the collapse in wage growth and the conspicuous difference in the rate of improvement in Asia vs in America. The World Bank says [0] the US GDP per capita has more than doubled since 1996. In real terms. Computers have been a big boost, but it seems a tough sell that the US population has actually seen a real doubling in that time. That is saying a dude with a house in 1996 is a dude with 2 houses now. Is…
First off, the chart shows GDP per capita at current prices, meaning it's not adjusted for inflation.
GDP per capita is a very rough proxy for economic well-being. Adam Neumann of WeWork 'earned' $185 million for getting fired. So in essence, he raised GDP per capita by about $0.50.
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Odd that some people don’t notice things like this... https://en.m.wikipedia.org/wiki/Shrinkflation Do you actually track spending or just don’t notice?
>Do you actually track spending or just don’t notice? Do you? The BLS does, and their inflation numbers for food is 3.5% YOY. [1] https://www.bls.gov/cpi/