Thread by @ektrit

INFLATION VS DEFLATION

I have few eggs and few Albanian Lek coins.

Hang on there, I'll explain to my friends here inflation vs deflation with photos.

hang on

1/

Okay folks.
We have 4 eggs and 12 dollars (assume one coin is one dollar)

2/

Assume the market is just coins and eggs.

What is the price of an egg?

12 dollars divided by 4 eggs = 3 dollars per one egg.

3/

Now, the government decides to create money by an extra 4 dollars, 33.33% Quantitative Easing.

What is the price of an egg now?

16 dollars divided by 4 eggs = 4 dollars per egg.

Modern Economics calls this Inflation.

4/

Now, the government decides to do Quantitative Tightening, QT.
The government removes 8 dollars from the system.

What is the price of an egg now?

8 dollars divided by 4 eggs = 2 dollars per egg.

In modern Economics this is called deflation.

5/

Okay folks.
Now replace eggs with oil, aluminum, houses, stocks, bonds etc etc etc etc etc.

You get the point folks, with the term Quantitative Easing and Quantitative Tightening?

Weak US dollar (meaning lots of dollars available) vs Strong USD (meaning lack of dollars.

6/

Do you understand why the Insolvent Anti Human Banking Lobby does NOT want Quantitative Tightening and Strong Dollars?

Do you understand why QE and Strong USD are great for supply chains and you the people?

Things, life, get affordable.

7/

Do you understand why weak USD (0% interest rate) means higher oil price, meaning higher gasoline price, meaning larger misery for we the people?

Do you understand why strong USD (high interest rate) means lower oil price, better living for we the people?

8/

We ought to get on our knees and pray God Almighty for strong USD, high interest rates, and as a consequence LOW PRICES, hence affordable life for all of us.

9/ END

#krisonomics
#EnergyStarvation
#SupplyChainWar