Nostr Web Client

my main point is you can't get to hyperinflation just by printing money ... the system has to break in some way

printing money doesn't even necessarily lead to inflation ... in a healthy economy you can print money and have DEFLATION at the same time ... and if you print A LOT of money you might have SOME inflation ...

to have hyperinflation the system must be fundamentally broken in some way ...

we could still get there !

the BRICS countries are exiting the dollar ...

petrodollar is becoming irrelevant since nobody is using oil anymore - everything is going electric

but China controls both Chemicals, Solar Panels and Lithium Batteries ... and Russia is world's biggest Oil producer ... and they're both BRICS and trade with each other in Rubles and Yuan ...

as i mentioned to nostr:npub1c856kwjk524kef97hazw5e9jlkjq4333r6yxh2rtgefpd894ddpsmq6lkc stagflation is economic diabetes.

diabetes is when the cells refuse to take up any more sugar. stagflation is when the economy is refusing to absorb more money.

you can put A LOT of sugar into a young and healthy body without adverse effects - it will simply get absorbed by the cells. but give a diabetic even a little bit of sugar and his blood levels will spike and stay elevated.

likewise when you're a world reserve currency and economy is healthy you can print A LOT of money and it will just spread throughout the world and be used to start new businesses in the most remote of places ...

but what if countries abroad refuse to take your dollars and businesses at home are choked by government ? and simultaneously stock market is crashing because of WW3 or Covid or whatever and government begins to print to try to revive the stocks ? as inflation skyrockets suddenly everybody is trying to offload the dollars that they have causing inflation to go even higher ...

the reason we didn't see it get that bad during Covid is because all the countries went with the same policies at the same time. all the currencies were devalued in parallel so there was no real incentive for people to convert one currency to another.

when i lived through hyperinflation in Ukraine when people got their pay check they immediately ( i mean within an hour ) converted the money to Dollars on a street corner kiosk.

there were currency exchange kiosks on every corner in Kiev at that time. i was a small kid and even i used dollars to buy things like cassette tapes - i don't think i ever even had Ukrainian currency in my pocket.

in other words hyperinflation happens when people realize that their currency is TRASH and everybody proceeds to dump it at the same time by converting it to some other currency ...

again, this didn't happen during Covid because ALL currencies were devalued SIMULTANEOUSLY. this was DELIBERATE.

it was a scheme to impoverish the population OF THE ENTIRE PLANET.

and yet we're seeing a rift between NATO and BRICS so that is potentially a source of trouble ...

Dissident Sound 1y ago

so it's a matter of trust.

what gives bitcoin value ? its only source of value is that people BELIEVE in it.

same for the dollar. people BELIEVE in the dollar.

mining bitcoin doesn't devalue it - it keeps going up - because the number of people believing in it is going up.

if dollar crashes it won't be because more of them was printed - but because people lost their trust in it.

frankly i see no reason to have faith in the dollar. we're losing to China economically. the entire world hates us because of Israel. BRICS are getting more and more integrated.

and yet what is the alternative ? if people were to convert dollars - what would they convert them into ? which currency holds value better while also being universally accepted ?

bitcoin is still too hard to use. most other currencies have higher inflation than dollars.

only Yuan ...

the Yuan is appreciating against the dollar ...

if Yuan becomes world reserve currency THEN you will see what hyperinflation looks like ... or what WW3 looks like

😃

Reply to this note

Please Login to reply.

Discussion

Dissident Sound 1y ago

ask yourself this homie - why is Yuan appreciating against the dollar ?

do the Chinese not print money ?

the answer is it has nothing to do with printing money

the Yuan is appreciating because Chinese economy is growing, Chinese sphere of influence is expanding and the Trust and Respect that people have for Chinese Economy and Yuan is increasing ... thus the DEMAND for Yuan is increasing causing it to appreciate ...

supply and demand

you're ONLY looking at the supply but reality is that supply is easy to control - demand is IMPOSSIBLE to control

so when shit hits the fan it won't be due to excess supply - it will be due to collapse of demand

( Andrew Tate Voice ) Do You Understand ?

Dissident Sound 1y ago

in other words although supply of money and demand for it both have equal effect on the value of money supply is actually relatively static ( it grows at a slow and relatively steady rate ) whereas demand is dynamic.

supply is unlikely to go to infinity overnight but demand can go to zero overnight ( for example if US loses WW3 to China )

don't expect Austrian cocksuckers to explain these things to you. they don't care about reality. they care about pumping gold and bitcoin and avoiding taxes.

their real objection to fiat system is having to pay taxes, which are ultimately paid to the federal reserve as interest on loans.

so of course they begin to rationalize how everything is the fault of federal reserve when in reality China also has central banks - the difference is they DON'T HAVE NIGGERS.

the reason Yuan is beating the Dollar is because Chinks > Niggers

( Andrew Tate Voice ) Do You Understand ?