interesting. Let' s consider that the USD already had lost 98%. What does 80% extra money creation do? bring it up to 98,8%. Does that even matter?
Not really.
What you will see is that the consequence, not of the latest round money creation, but of the purposeful destruction of the supply-chain with its interdependence and digital vulnerabilities will be causing: hyper inflation, because now there is a tool in action to balance the amount of goods against the amount of currency value.
Because before this, there was an increase in production. This increase has a deflationary trend. By forcing a supply chain issue, there is enough currency to meet the scarce available goods. Now the currency available chase the smaller amounts of goods, meaning prices increase tot he point of astronomical.
Between the extremes, of course, there is a nice goldilock where production and goods are still available but the increase of price adds to the GDP, and thus adds to the " quality" of the creditworthiness.
Let's say the inflation reaches on average 15% YoY(Year over Year). This means that the goods exchanged for currency continues at a higher-price level. GDP, therefor, increases by 12%, because certain people will have to bow out, due to savings forced upon them, or changes in spending habits.
This means a country in debt, with say 500 billion and a GDP of 700 billion, all of a sudden is looking at a GDP of 784 billion. Since debt is expressed in a % of GDP, they went from 71% indebtedness to 63%. From an accountancy perspective this is GREAT! From a technocratic perspective: this is fucking awesome.
This is what the European Central Bank (and the FED for that matter, that s why they placated it as transitory) is hoping for.
I am not too sure it will be as they think it will be.
It is really not just a bubble, like the housing bubble, or the mortgage bubble. This is bubble everything. The MOTHER OF ALL BUBBLES.
In terms of how relieved I feel .... that depends on the angle. I feel relieved everyday. And I am being relieved, as we speak, by mass immigration The moment I am killed, I am definitively relieved.
interesting. Let' s consider that the USD already had lost 98%. What does 80% extra money creation do? bring it up to 98,8%. Does that even matter?
Not really.
What you will see is that the consequence not of the latest round money creation but of the purposeful destruction of the supply-chain with it's interdependence and digital vulnerabilities will be causing: hyper inflation because now there is a tool in action to balance the amount of goods against the amount of currency value.
Because before this, there was increase in production. This increase has a deflationary trend. By forcing a supply chain issue, there is not enough currency to meet the scarce available goods. Now the currency available chase the smaller amounts of goods, meaning prices increase tot he point of astronomical.
Between the extremes, of course, there is a nice goldilock where production and goods are still available but the increase of price adds to the GDP and thus adds to the " quality" of the creditworthiness.
Let' s say the inflation reaches on average 15% YoY(Year over Year). This means that the goods exchanged for currency continues at a higher-price level. GDP therefor increases by 12%, because certain people will have to bow out, due to savings forced upon them, or changes in spending habits.
This means a country in debt with say 500 billion and a GDP of 700 billion, all of a sudden is looking at a GDP of 784 billion. Since debt is expressed in a % of GDP, they went from 71% indebtedness to 63%. From an accountancy perspective this is GREAT! From a technocratic perspective: this is fucking awesome.
This is what the European Central Bank (and the FED for that matter, that s why they placated it as transitory) is hoping for.
I am not too sure it will be as they think it will be.
It is really not just a bubble, like the housing bubble, or the mortgage bubble. This is bubble everything. The MOTHER OF ALL BUBBLES.
In terms of how relieved I feel .... that depends on the angle. I feel relieved everyday. And I am being relieved, as we speak, by mass immigration The moment I am killed, I am definitively relieved.