nicodemus on Nostr: No, I said that for hyperinflation to occur, there needs to be a continuous backstop ...
No, I said that for hyperinflation to occur, there needs to be a continuous backstop of monetary expansion. Much more than the current rate.
I agree that there would be price inflation on goods/services if stocks/investment vehicles were cashed out - no debate there. The argument is whether or not that would be hyperinflation - and it wouldn’t be. You even used the past tense for describe the expansion: “was” - as in, isn’t occurring now.
There’s no illusion - everyone is aware of the rapid expansion during Covid (the rate has returned to something closer to “normal”). The investors aren’t trapped. If they sold and spent it, they’d benefit from the Cantillon effect. Everyone else would feel the effects as the money moves through supply chains - but not the investors. They’re first in line. And they know it.
If there is an illusion, it’s one of wealth by having the denominator of asset prices being constantly debased. But we know that, and even the masses are slowly starting to figure it out, again, like the boomers did in the 70s.
I agree that there would be price inflation on goods/services if stocks/investment vehicles were cashed out - no debate there. The argument is whether or not that would be hyperinflation - and it wouldn’t be. You even used the past tense for describe the expansion: “was” - as in, isn’t occurring now.
There’s no illusion - everyone is aware of the rapid expansion during Covid (the rate has returned to something closer to “normal”). The investors aren’t trapped. If they sold and spent it, they’d benefit from the Cantillon effect. Everyone else would feel the effects as the money moves through supply chains - but not the investors. They’re first in line. And they know it.
If there is an illusion, it’s one of wealth by having the denominator of asset prices being constantly debased. But we know that, and even the masses are slowly starting to figure it out, again, like the boomers did in the 70s.