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/biz/ - Business & Finance

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18016561 No.18016561 [Reply] [Original]

ALRIGHT pros of /biz/ what is our next destination with all the fed money getting printed? The econ is going down hard, so that means housing/real estate should normally follow. But with the trillions inbound are we going to see shitty houses going for 2x of current prices?

Is there any way we see a deflation?
t. sitting in cash and hoping to not get raped

>> No.18016613

it's another shitty thot photoshop

>> No.18016657

>>18016561
Hyperinflation. Dollar replaced by amero

>> No.18016711

>>18016657
so whats the best move with my cash?

>> No.18016953

>>18016561
>Deflation first, then hyperinflation.

Remember that most money is actually debt, keyed into computers by banks, not currency printed by the government. That means that as companies and individuals default on their loans, all that debt money gets destroyed, very quickly, faster than the Fed can pump out new dollars. Also remember that inflation is a function of the velocity of the money, just the total supply. As money changes hands faster, inflation goes up. But in a depression, everyone is saving their cash, so velocity and inflation will be initially low.

Eventually, the Fed will print so much that inflation they will overcome the debt bubble collapse, and people will start spending again, which means velocity will take off, and that's when you get hyperinflation.

>> No.18016999

>>18016561
Neither. Inflation hits 5% max. The demand for the USD is stronger than ever.

>> No.18017078

The entire planet is dumping their money into the USD because the USD is still the reserve currency of the planet. Check the currency market for yourself, the value of the dollar is skyrocketing because every other country uses it as a safe haven. The Treasury is minting two one trillion dollar platnium coins to give to the Federal Reserve so they can provide the funds for the stimulus as well as compensate for every other person on the planet who is hoarding US dollars. We are headed into deflation in the short term but once things get back to normal and everyone dumps the dollar that is where you will see hyperinflation.

>> No.18017110

>>18017078
They're not going to "dump" their dollar. They're going to use it to buy the cheapest crude the world will ever see for the rest of time.

>> No.18017196

>>18017110
Dump was a generalization. Yes that is most certainly one of many things they will do with their money.

>> No.18017237

>>18017196
Which means the supply of dollars will go mostly in Saudi hands. Which means Saudi Arabia will have a vested interest in hodling as much of their dollars as they can otherwise they just firesold all their oil for literally nothing. Hyperinflation will not occur due to the nature of the actors and their interests.

>> No.18017300

>>18017237
Well they are currently fire selling their oil to take down American Shale once again. If they take out American Shale (which they won't because they'll just close up shop and wait it out like last time) it wouldn't have been for nothing. But I do agree with your assessment, it would also help insulate the USD against other players such as China who nothing more than for oil to be priced in their currency versus the dollar.

>> No.18017431

>>18017300
I think shale will just get bought for pennies on the dollar by big companies like Exxon and Shell. Then they'll gut the shale companies to make them more profitable and promote synergy and etc.