i completely agree with that.
but let me ask what happens in a highly inflationary environment when Cantillionaires get a shitton of new money?
do you agree Nvidia is accurately valued?
what about Tesla?
the new money seeks the highest-perceived returns. it creates an overbought condition over the entire upper layer of the economy. eventually that new money decide to exit and crashes the market.
in such a situation people arent aware the price they see in the chart
isnt the "honest price" or real social utility of the item.
its because a bunch of degen gamblers think itll go higher.
i think not understanding that is a problem.
you can call it the free market functioning if you like,
and you're not technically wrong.
but prices are fucked on a fiat standard.
There's no accurate price/value, only market price. I see your point though - the currencies are worthless essentially.
How do you know you are not already in a highly inflational environment? Hyperinflation on a fiat standard is more common than some might think.
I do think we are already in a highly inflationary environment.
it's a large part of why the prices are "distorted" by gambling.
when prices no longer represent the collectively perceived utility of the thing
but instead show the expectation the thing can be flipped for more purchasing power later that a tulip mania.
is the price "wrong?"
no.
but it doesn't mean what most people think it means.
"when prices no longer represent the collectively perceived utility of the thing
but instead show the expectation the thing can be flipped for more purchasing power later..."
Textbook speculation. This is part of the utility of investable goods and a feature of every scarce resource.
it is PART of it, yes.
but when most of the money in a commodity is there for speculation
its a speculative bubble and prices are distorted.
its another problem with a fiat standard.
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