"Don’t worry about it, there will never be any inflation!"
Time to take a closer look. 👇
2/ First, a few definitions:
Inflation measures how much more expensive a basket of goods and services has become over a certain period, usually a year.
Looking at the US and Europe the numbers don’t look too bad.
But wait there is more ;)
3/ As Winston Churchill once said:
The only statistics you can trust are those you falsified yourself.”
Over the past decades the government changed the way how to measure inflation several times to give you the expression there is nothing to worry about.
4/ If we calculate inflation the same way as in the 80ies or 90ies, it is at least double the amount!
5/ But there is more....
The Chapwood Index reflects the true cost-of-living increase in America. It reports the unadjusted actual cost and price fluctuation of the top 500 items on which Americans spend their after-tax dollars in the 50 largest cities in the nation.
6/ What does that mean?
The money in your bank account is actually losing 10% a year.
Same goes for your salary unless you get a 10% raise a year. If not, you should ask for it!
How can that be true? Why is there no revolution, you might ask.
7/ Unfortunately most people are not aware of it as inflation is a perfidious and hidden tax.
As Henry Ford once said:
"It is well enough that people do not understand our monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
8/ Let’s take a look why there is inflation in the first place:
Did you know? 21% of all us dollars were printed in 2020?
This is an outrageous and freaking high number!
Even if you do not know anything about finance that number should alert you!
9/ But is not only the US. For the first time in history every country on this little planet is busy, debasing its currency.
Things are about to get wild.
Please pay some attention to these trends and act accordingly.
10/ How are money printing and inflation linked to each other?
Inflation occurs when there is too much money chasing too few goods and services. In slightly more technical terms, inflation occurs when money supply growth outpaces economic growth.
11/ So what we have is a 100% increase in money supply and no increase in the supply of goods. Now there is more money chasing the same amount of goods, so sellers of the goods raise their prices.
Inflation is not a linear process but an exponential one!
Once it starts, it is really hard to control.
And unfortunately things are already moving fast.
Let me show you some data points: 👇
13/ US Inflation expectations have been on a steep rise during 2020.
14/ Remember, inflation occurs when too much money is chasing the same amount of goods.
As it seems, money is starting to chase commodities.
Commodities are close to a 5 year high.
15/ Lets take a closer look at some of them:
Dr. Copper is because of it is wide use one of the best commodities to measure inflation.
Already trading at a 7 year high! I expect copper prices to shoot out of that chart below over the next couple of years.
16/ At the same time copper inventories are on a 10 year low.
Supply and demand in action.
17/ The same can be seen through the whole base metals space.
Zinc, Platin are moving higher.
Silver is still very cheap in comparison!
18/ But there is more…
What’s even more alarming: agriculture commodities are on a tear lately.
Look at these charts:
Corn: 7 year high
Soybeans: 7 year high
Sugar: going ballistic
19/ But there is more….
Russia the biggest wheat exporter of the world just introduced new export taxes on wheat.
21/ So next time a politician tries to convince you, there is no inflation, show him some agriculture future price charts!
Inflations is right there!
22/ Obviously there other very bad side effects to inflation.
I am convinced, inflation is the main driver behind today’s wealth inequality.
If you live paycheck to paycheck you keep getting screwed by inflation.
23/ More on this:
Cheap money is the main driver of stocks and real estate.
If you are a social justice warrior, you should focus all your energy on a sound monetary system.
Central Banking is the biggest fraud in the 21 first century.
And it is right in front of our eyes!
24/ This is why I #Bitcoin. BTC provides an alternative. It allows the Common Man to exit this system, start working with his fellow man instead of fighting with him, and leave behind the overarching kleptocratic system that wants him poor and divided.
25/ #Bitcoin is treaded by the market as a digital commodity. (spoiler: it is much more than this)
Therefore it does not come as a surprise that Bitcoin is exploiding as of late.
26/Bottom line:
Inflation is already here. If you are lucky enough to have some savings, act accordingly.
During this decade the biggest wealth transfer of all time will go down.
Fortunes will be made and lost.
Get yourself prepared for wild outcomes and spread the word.
GL!
French Fries - $ 0.26
Big Mac - $ 0.65
Coke - $ 0.15
Obviously prices only went up as the quality of products got better! 🤪🤡
28/ As I pointed out, real inflation is probably way higher than the official data might suggest.
Nevertheless considering the amount of money printed over the past decade, it still seems low.
Lets follow the money!
As M2 went up, velocity of M2 droped like a stone.
29/ This might tell you, the newly printed money didnt go in the real economy but went straight into assets like real estate and stocks (asset price inflation).
But things might turn around as of lately.
Definitely something to pay attention to.
30/ Especially considering this:
'Spend as much as you can,' IMF head urges governments worldwide.
1/ US Dollar is still king. 👑
Whole market currently at the mercy of the king.
DXY in parabolic uptrend. Once it breakes, #Bitcoin, #Gold and risk assets will rally, but it could squezze to 120 first for max pain.
The FED might just go for it.
2/ In the short term DXY might dip to range low at around 107 before going higher. But not even sure if we get so low, next couple of days will clear it.
As long as we are above 104, it remains a trader market.
Be patient if you are looking for longterm entries.
3/ US Yields have been ripping higher. As long as yields keep going up, all other asset classes will have a hard time.
US30Y sub 3% will be key, next resistance at 4%. If it goes higher, get ready for a lot of pain and stress in the financial system.
Sie hat Recht, dass Energie auch durch den Krieg teurer geworden sind, jedoch steht Öl mittlerweile unter dem Niveau vor dem Krieg.
Was wir auch sehen, den Großteil seines Anstieges hat Öl lange vor dem Krieg hinter sich gebracht. War das auch Putin?
3/ Die Energiepreise steigen in erster Linie wegen einer völlig fehl geleiteten Energiepolitik, geopolitische Spannungen haben den Trend nur verschärft aber nicht ausgelöst.
Zurück zum Geld: während der Öl Preis nach Corona stark stieg, hat zeitgleich der Euro stark abgewertet.
1/ I never post about any other cryptos beside #BTC as most of it is complete vaporware.
Today I make an exception, as I am getting more bullish on crypto gaming.
Especially a still mostly unkown project called @DefiKingdoms is well positioned to thrive in 2022.
Welcome to DFK
2/ First of all, keep in mind that investing in projects like @DefiKingdoms bares a much higher risk than #Bitcoin.
I would not reccomend selling your BTC for any other crypto project.
And as always do your own research, dont follow anyone bllindly. This is not financial advice
3/ Online Gaming was a niche years ago, but no more. The sector will keep growing, especially as the world is facing new lockdowns, it doesnt take a rocket scientist to figure out how people might spend their time at home.
2/ Disclaimer:
Ich bin weder Mediziner, Virologe noch Epidemiologe.
Ich übernehme keinerlei Garantie für die Richtigkeit der hier vorgestellten Meinungen und Einschätzungen.
Ich stelle lediglich Fragen, die zu selten gestellt werden.
3/ Die in diesem Thread zusammengefassten Meinungen stehen extrem konträr zu den Meinungen unserer Politiker.
Gegenstimme: @TiloJung Interview mit @Karl_Lauterbach
1) #Bitcoin hat dort Erfolg, wo Gold gescheitert ist. Gerade einmal 10 Jahre nach seiner Erschaffung, befindet sich das alte System in heller Aufregung.
Kommt das Ende des Bargeldes schneller, als viele in Europa für möglich halten und welche Gefahren bringt das mit sich?
2) In einem seiner neusten Paper propagiert der IMF die Heruasgabe von digitalen Zentralbankwährungen und beleuchtet die angeblichen Vor- und Nachteile.
3) In den letzten 30 Jahre waren meist westliche Soldaten in den rohstoffreichen Gebieten dieser Welt unterwegs, um Brunnen und Schulen zu bauen.
Diese Unternehmen war von mäßigem Erfolg und verheerenden Kollateralschäden gezeichnet, so das neue Pläne und Ideen von Nöten sind.