The Money Supply and you - meltdown or meltup?

[OneMoreRep]

Got it.  The advantage for a homeowner during an inflationary period is paying off the house early with all that extra paper.

Agreed!

I'm banking on that. I think Jerome Powell is going to drive the dollar through the ground. Inflation rate for last month hit 0.6% (massive). I think it will get worse.

"1"

[Mayday]

I've had 2 family members tell me this past week that interest rates are going to go up. That isn't going to happen and i'll outline why.

This is for Australia but we peg to the USD so it's generally a similar story. We track M2 and M3 so we see stimmy injections in M2 and then in M3 you see how it impacted throughout the economy on a longer timeline. The US doesn't track M3 so you only see the bursts in M2 and not the deflation after in M3.

2021 so far:
Currency -1%
M2          +4%
M3         +1%
Sharemarket +14%  and property market +9%
Velocity  0.9 (For every 100B we spend we get 90B return in GDP).
**This means some asset classes have experienced a mass exodus of funds which have flowed to the sharemarket and property market.

Bond yields are flattening which marries up with the lack of money supply growth which means you don't get interest rate increases. For interest rates to increase you need the bond rate and money supply to be going up aswell, instead we have them flat despite pumping in large deficits during 2021.

The problem with deflation is it looks the same as inflation which is why people are very confused about what is going on. It's like this. A productivity drop leads to volume drop leads to price increases. The prices increase because we have less to sell, therefore prices need to go up to earn a living. Making less, selling less = higher unemployment and downward pressure on wages. It's a deflationary spiral that continues to feed itself.

*Lower wages because you don't have to come to an office
*Lower wages because you don't have to come to an office and therefore don't need to live in the world's most expensive cities.
*4 day work week because you don't come to an office and don't need to live in the world's most expensive cities so now you have less money to purchase less products meaning the business doesn't sell as much volume to support your already low wage so now you work less hours if you want to keep your job.

Printing money doesn't automatically create inflation. You see CPI go up but it's not because everybody is out there buying shit like crazy. Volumes are falling, prices are going up as a result which gives the illusion of inflation.

[Zillotch]

International banking officials simulate global economic collapse

High-level international banking officials and organizations gathered last month for a global 'war game' exercise simulating the collapse of the global financial system. The tabletop exercise was reminiscent of 'Event 201,' the pandemic simulation exercise that took place just before COVID-19 entered the global scene.

https://www.lifesitenews.com/opinion/international-banking-officials-simulate-global-economic-collapse/

'The “Collective Strength” initiative was held for 10 days, beginning Dec. 9, 2021, at the Israeli Finance Ministry in Jerusalem. It was relocated to Jerusalem from the Dubai World Expo over concerns about the Omicron variant.

Israel led a 10-country contingent that also included treasury officials from the U.S., Austria, Germany, Italy, the Netherlands, Switzerland, Thailand, and the United Arab Emirates.

Representatives from supranational organizations, such as the International Monetary Fund (IMF), World Bank, and Bank of International Settlements (BIS)... and indirectly, the World Economic Forum (WEF) also participated.

the main theme of “Collective Strength” appears not so much the simulation of such cyberattacks but, as the name of the initiative implies, the strengthening of global cooperation in cybersecurity and the financial sector.

As reported by Reuters, participants in the simulation discussed multilateral responses to a hypothetical global financial crisis. Proposed policy solutions included debt repayment grace periods, SWAP/REPO agreements, coordinated bank holidays, and coordinated delinking from major currencies.'