/biz/ - Business & Finance

Dollar milkshake theory

BRRRRRRRRRRR BRRRRRRRRRRR BRRRRRRRRRRR BRRRRRRRRRRR BRRRRRRRRRRR BRRRRRRRRRRR BRRRRRRRRRRR BRRRRRRRRRRR BRRRRRRRRRRR BRRRRRRRRRRR BRRRRRRRRRRR BRRRRRRRRRRR BRRRRRRRRRRR

>>18153528
UHHHHHHH I'M GONNA PRINNNNNTTTTTTTTT

>>18153528
brrrrrr

>>18153528
DO NOT LAMENT OVER THE VICISSITUDES OF A MARKOV CHAIN!

Because there's liquidity problems and demand problems.

>>18153555
Most based post of the day, also checkem

>>18153528
2T is nothing when US debt alone is worth 23T+. The dollar cannot hyperinflate under these conditions, demand for dollars is too strong currently. To the point where even $1000 for everyone will do absolutely nothing.

in short, because oil prices are crashing.

USD is the world currency, there is a liquidity crisis in it right now bc of the collapse of the markets bc of covid hysteria. because there is a lack of supply of USD, the demand is higher => price of USD increases => deflation.

note in graph below that there appears to be an inverse correlation between the rate of change of the USD buying power and the price of crude. this means that the lowering of oil price caused the increase in value of the USD which will now be offset by "necessary" brrr-ring.

basically, the inflation won't be felt at home until the price of oil starts to increase. it appears to be a way of pumping and dumping the US markets into wherever the vultures are going next.

Morgan Stanley has instructed to sell USD, which suggests they know its value will sink (as soon as crude starts to climb and the brrrr-ing comes home to roost)

https://finance.yahoo.com/news/morgan-stanley-says-markets-bottoming-022115915.html

see also: https://oilprice.com/Energy/Crude-Oil/Saudi-Arabia-And-The-US-Could-Form-The-Worlds-Newest-Oil-Cartel.html

>>18153528
What is this meme about brrring for gains?

>>18153528
wait for it...

>>18155064
based, thanks for the info

>>18153528
people are liquidating everything and hoarding it

>>18153528
because no one can buy shit

>>18153528
Brrrrrr platinum 1T eoy

>>18153528
Brrrrr

Brrrrrrrrr

brrrrrrrr

>>18153528
brrrrrr give us more money chaim

>>18153528
Inflation doesn't apply to fake money

>>18155064
>lowering of oil price caused the increase in value of the USD
No shit, the price is denominated in fucking DOLLARS you imbecile. When the dollar gets stronger, everything gets cheaper in dollars, BY DEFINITION

>>18153528
ITS NOT FAIR

I SAVED MONEY,

NOW THAT EVERY ONE NEEDS IT, I SHOULD BE ABLE TO TRADE IT FOR THINGS I WANT.....

>>18155064
>lowering of oil price caused the increase in value of the USD
No shit, the price is denominated in fucking DOLLARS you imbecile. When the dollar gets stronger, everything gets cheaper in dollars, BY DEFINITION

>>18153528
Because mnuchin and trump fucked up hard , they starved the world of the reserve currency due to the trade war and disrupted trade worlwide.

Now no one wants to invest and everyone just wants to buy dollars , worse they attacked bitcoin which could have solved the real estate crisis & dollar deflationary problem by slowly absorbing some of the pression against the usd.

So now they have a serious dilema , they do gibs and create serious food & real estate inflation in burgerland(and giving demorats a cause to gain power).
Or the entire system suffers a deflationary collapse due to their own retardation.

Worse (way worse) , the democrat retards don't seem to understand the gravity of te situation , the simulus they voted that they conisdered conservative is more than 50% increase of the usa monetary base in a few months.

Literally the 3 QE plans from 2008-2014 in just a few months and the leftards will want more.
This plans are so big now that the usa is at risk of serious communism because they can cause serious internal inflation and give the democrats the idea of push things like ubi since anyway they are doing.

Worse there will still be deflation anyway because they fucked international markets with the trade war & (and also they fucked themselves with the welfare state meme taxing milenials to hell).

Burgerland stll has a chance to reserve this but i don't think trump mercantilistic view of the economy will be able to solve this.
And the democrats lack the iq to understand even what is happening.

>>18155052
>2T is nothing when US debt alone is worth 23T+.

23T debt was accumulated over decades, the us monetary base is 3.2T

So 2T in a few months is massive , also there is 800b qe plan so almost another monetary base.
This is venezuela tier retardation but they got themselves in by masturbating to the strong reserve currency meme.

To be fair the reserve currency meme is bad for burgerland due to deindustrialization and trump used the tools he had(tarrifs) to prevent this.

But this starved the world of usds and caused this mess.

economics isn't a science

brrrrrrrrrrrrr

>>18158441
Wait, I am having trouble understanding how can USD inflate inside America while at the same time deflate outside America.

If USD deflates outside US, it greatly increases buying power, so doesn't matter how badly USD inflates in US, just buy goods from overseas!

>>18153528
brrrrr

>>18159335
>Wait, I am having trouble understanding how can USD inflate inside America while at the same time deflate outside America.

The us economy will suffer inflation on goods like food because people will only be buying those.

While the service / industrial economy will suffer servere deflationary effects due to the world devouring us dollars and removing them of circulation from the us economy.

>just buy goods from overseas!

Which will cause mass unemployment and this is why i am pointing that mnuchin & trump reserve currency masturbation was retarded from the start.
The us leadership should be praising satoshi nakamoto since bitcoin would absorb a lot of the inflationary effects that go to real estate and other stuff.
Now as you correctly pointing the solution will be "buy goods overseas" , but how will you prevent mass unemployment now?

Everything is about to be outsourced from burgerland , from industry to services , hell even food would be at risk if not for world pop growing.

The reserve currency meme is about to assrape the usa hard due to burger leadership not understanding their place in the world.

>>18159458
Damn anon, interesting times we live in.
Thanks for the redpill.
>wipes tears in useless AUD notes

>>18158466
how did tariffs starve the world of usd? were the 10-20% price increases seriously all it took to restrict dollar outflow to the point of a global a liquidity crisis? there's got to be more than that going on

>>18153528
>>18153555
Reminder that all the worlds debt is handled through dollars. There aren't enough dollars out there to pay off all the debt. Dolllars are actually very very scarce. This is what you poor lolberts and metal tards don't understand.

>>18153528
Because velocity is low. When this virus gets under control (whenever that might be) and people start spending again, then you will see hyperinflation.

>>18160340
Clown world

>>18153528
Brrrrrr

>>18158326
I feel immensely stupid for thinking that was the only intelligent post I've ever seen on biz now

>>18153528
brrrrrr

>>18153528
Inflation is about money moving around in the economy. Banks are money black holes, they're holding mist of the money. As they always did.

The #Fed's balance sheet increased by $1.3 trillion in 14 days (6% of the GDP), which is like buying Google and Walmart

>>18155064
>Morgan Stanley has instructed to sell USD, which suggests they know its value will sink
Sell it for what? Stocks gold?

>>18158326
Wow yeah this is correct and I’m retarded

>>18164585
Swiss francs

>>18155064
That, plus everyone is fucking selling. Currency and stonks in particular are inversely correlated in every way. Any time someone cashes out that's more demand for the dollar, any time the dollar inflates that sends people hunting for investments.

>>18153528
hahaha money printer go brrrrrrrrr

>>18153528
>brrrrrr

Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr Brrrrrrrrr

>>18153528
Brrrrrrrrr

>>18153528
Where do you think all boomers dollars went when stock market "lost" trillions of dollars. To big banks, to pay off the fed. Might as well of evaporated

If you want to understand thoroughly, go read all this shit:

https://alhambrapartners.com/commentaryanalysis/

>I personally don't believe in germ-based contagion

>>18153528
B(RRRRRRRRRR)EAR

BRRRRR

BRRRRRRRRRRRRRRRRino

>>18153555
>Dollar milkshake theory
Checked. Looking into this now, interesting

>>18166092
Anyone want to make a bet on when dies from Coronavirus?

>>18153528
Because the beasties won't be able to afford their trinkets and giblets if they don't worship the USD exchange rate.

>>18155052
Hyperinflation for USD is a far cry from reality. There's too many ignorant brainwashed people that don't know how to not enslave themselves to worshipping the USD because the USA corrupted their souls with the fake news media.

>>18158441
>le demonrats
Democracy isn't real and you're a retard. Both parties are controlled by the exact same kikes.

>>18166092

>Look, we found a high achiever who suffers from a mental illness
>In other news, dog bites man

>>18168100
based

>>18168100
>le
Go back

>>18160285
99% of foreign currency transactions (read: international commerce, be it digital or physical) use the dollar as an intermediary. Because Russians don't have yuan and don't want yuan, and Chinese don't have rubles or want rubles. But they know they can trade their currency for the dollar and then trade the ensuing dollars for rubles or yuan in order to pay foreign entities.

>>18160340
Absolutely fake news.

>>18153528
CPI calculation:
>omit housing market
>omits shares (stock) market
but wait! here comes Michael Boskin:
>what do you mean your new TV is much more expensive? it also has larger screen, so the price/size ratio is lower, see your nee TV is actually cheaper and there is absolutely no inflation goy!

>>18155064
kys.