ELON MUSK IS GOD

[Walter Sobchak]

but yeah the general consensus seems to be we may see a dip here and there but the fed will absolutely positively bankrupt this fucking country to make sure the S&P stays above 2400.

gotta say tho, its possible they pull it off (on both fronts).

The Fed can't bankrupt the country because they don't spend the country's money. Congress does that.

Also, the country can never go bankrupt.

[ErickAA]

I guess people have started getting $1200 checks. Should we expect a market boost Monday from this?

[TheXFactor]

How are these Billionaire hedge fund managers going to survive?

I hope most of them get wiped out.

Especially, Steven Cohen who is the hedge fund manager that the TV show "Billions" is based on.

In 2013, the Cohen-founded S.A.C. Capital Advisors pleaded guilty to insider trading and agreed to pay $1.8 billion in fines in one of the biggest criminal cases against a hedge fund. Steven Cohen still has a net worth of about $14 Billion and he is a major asshole.

This time I hope he goes broke.

[sonatine]

but yeah the general consensus seems to be we may see a dip here and there but the fed will absolutely positively bankrupt this fucking country to make sure the S&P stays above 2400.

gotta say tho, its possible they pull it off (on both fronts).

The Fed can't bankrupt the country because they don't spend the country's money. Congress does that.

Also, the country can never go bankrupt.

if you print enough dollars, the value of the dollar deflates versus other currencies/goods/standards.

if it suddenly takes 1200 jesusbucks to buy a gallon of gas, we are essentially bankrupt.

[ErickAA]

The Fed can't bankrupt the country because they don't spend the country's money. Congress does that.

Also, the country can never go bankrupt.

if you print enough dollars, the value of the dollar deflates versus other currencies/goods/standards.

if it suddenly takes 1200 jesusbucks to buy a gallon of gas, we are essentially bankrupt.

So why shouldn't we be investing in gold if we feel this is a high likelihood of happening?

[OSA]

if you print enough dollars, the value of the dollar deflates versus other currencies/goods/standards.

if it suddenly takes 1200 jesusbucks to buy a gallon of gas, we are essentially bankrupt.

So why shouldn't we be investing in gold if we feel this is a high likelihood of happening?

Luckily for us, not everyone shares the same grim outlook like Tine and San.

[Walter Sobchak]

The Fed can't bankrupt the country because they don't spend the country's money. Congress does that.

Also, the country can never go bankrupt.

if you print enough dollars, the value of the dollar deflates versus other currencies/goods/standards.

if it suddenly takes 1200 jesusbucks to buy a gallon of gas, we are essentially bankrupt.

"If you print enough dollars" that's true. But the Fed is maybe printing a few trillion. And the Fed will only print as much as there is a demand for. And by demand I mean "willing to lock up money for the term of a Treasury bond" plus "enough to backstop troubled assets." They're not going to print more than it's useful to print.

US dollars are the world's reserve currency and holding one is holding a bit of the lifeblood of the US economy and the whole world's economy. Their safety and value is a reflection of the fact that the US is the most stable, freest and powerful place in the world to do business. If anything will undo the dollar it's damage to the system, not the printing of more dollars. Any medium of exchange depends on trust in the system and the people participating in it. If the system breaks down it doesn't matter if you have gold, USD, Bitcoin, oil or rare wines, what you are holding will be worthless.

Those extra dollars will eventually slowly fall back out of the system when they are no longer needed to prop up troubled assets. The dollars from the QEs during the 2008-09 crisis mostly did. Those QEs did not result in significant inflation. The money supply has to be able to expand and contract with the requirements of the economic circumstances of the time. Without that there is no modern economy. Fortunately, the Fed is still run by grown-ups.

[Walter Sobchak]

if you print enough dollars, the value of the dollar deflates versus other currencies/goods/standards.

if it suddenly takes 1200 jesusbucks to buy a gallon of gas, we are essentially bankrupt.

So why shouldn't we be investing in gold if we feel this is a high likelihood of happening?

First, because that is not going to happen.

Second, because gold is stupid. For a medium of exchange to work, it has to be in sufficient supply, easily transferable and widely accepted. Gold is none of these things. Hold whatever asset you want, if the trust in the system and its participants breaks down, it will be worthless.

[Tellafriend]

The miles long food lines are scary as all fuck though.
That has nothing to do with stonks or poker

I was stunned to learn that yesterday in my town there 1000 cars lined up to get free food placed in your trunk by the National Guard. 1000 cars. I am not in the country, but hardly a city of any import. schools feed our kids year round. the giveaways never end. we are so fucked when the music stops.

[Tellafriend]

How are these Billionaire hedge fund managers going to survive?

I hope most of them get wiped out.

Especially, Steven Cohen who is the hedge fund manager that the TV show "Billions" is based on.

In 2013, the Cohen-founded S.A.C. Capital Advisors pleaded guilty to insider trading and agreed to pay $1.8 billion in fines in one of the biggest criminal cases against a hedge fund. Steven Cohen still has a net worth of about $14 Billion and he is a major asshole.

This time I hope he goes broke.

I watched this interview live yesterday and it was tremendous. The interviewee is not Steven Cohen but instead a venture capitalist who got his start w/ Google or FB. Anyway, this guy is telling it like it is and the interviewer is at times taken back. It goes much longer than the 3 minutes that X posted so if you are interested go to YouTube/CNBC and watch it in full. Again, it will be well worth your time if you are interested in a contrarian view about what is happening by someone in the business.

[Daly]

The Fed can't bankrupt the country because they don't spend the country's money. Congress does that.

Also, the country can never go bankrupt.

if you print enough dollars, the value of the dollar deflates versus other currencies/goods/standards.

if it suddenly takes 1200 jesusbucks to buy a gallon of gas, we are essentially bankrupt.

So everything you say here is correct. “Everything being equal” if you have a baseline economy and then add extra currency to it you will get inflation. It’s a fairly simple concept.

What isn’t so simple to explain is “everything isn’t equal”. Yes both the Fed on the monetary side and the government on the fiscal side have added trillions of widgets of currency to the economy. I don’t have a calculator but it’s probably around 5 Trillion, maybe more. I did a back of the napkin calculation a few weeks back at the market bottom and came up with 17T of market cap evaporation in the three major stock indexes. That doesn’t account for real estate or intangeable assets or your fathers 56 Mantle. Trillions of widgets of value went “poof”.

Government added 5T, economy lost 20T plus.

Not exactly a fertile ground for inflation.

[Walter Sobchak]

if you print enough dollars, the value of the dollar deflates versus other currencies/goods/standards.

if it suddenly takes 1200 jesusbucks to buy a gallon of gas, we are essentially bankrupt.

So everything you say here is correct. “Everything being equal” if you have a baseline economy and then add extra currency to it you will get inflation. It’s a fairly simple concept.

What isn’t so simple to explain is “everything isn’t equal”. Yes both the Fed on the monetary side and the government on the fiscal side have added trillions of widgets of currency to the economy. I don’t have a calculator but it’s probably around 5 Trillion, maybe more. I did a back of the napkin calculation a few weeks back at the market bottom and came up with 17T of market cap evaporation in the three major stock indexes. That doesn’t account for real estate or intangeable assets or your fathers 56 Mantle. Trillions of widgets of value went “poof”.

Government added 5T, economy lost 20T plus.

Not exactly a fertile ground for inflation.

This too.

[gimmick]

So everything you say here is correct. “Everything being equal” if you have a baseline economy and then add extra currency to it you will get inflation. It’s a fairly simple concept.

What isn’t so simple to explain is “everything isn’t equal”. Yes both the Fed on the monetary side and the government on the fiscal side have added trillions of widgets of currency to the economy. I don’t have a calculator but it’s probably around 5 Trillion, maybe more. I did a back of the napkin calculation a few weeks back at the market bottom and came up with 17T of market cap evaporation in the three major stock indexes. That doesn’t account for real estate or intangeable assets or your fathers 56 Mantle. Trillions of widgets of value went “poof”.

Government added 5T, economy lost 20T plus.

Not exactly a fertile ground for inflation.

This too.

Yup. And additional point is that every currency has been doing this for a while. Relative to each other their value hasn't changed significantly. Running theme is that no one is seeing hyperinflation.

[sonatine]

also how quaint does the title of the show Billions sound these days

[Texter]

The miles long food lines are scary as all fuck though.
That has nothing to do with stonks or poker

I was stunned to learn that yesterday in my town there 1000 cars lined up to get free food placed in your trunk by the National Guard. 1000 cars. I am not in the country, but hardly a city of any import. schools feed our kids year round. the giveaways never end. we are so fucked when the music stops.

Don’t find this scary at all, whenever stuff is free people come out of the woodwork. When hurricane harvey hit a lot of people would go get the free water and free meals without needed them...got seen on social media and got fired...ha.

[SPIT this]

but yeah the general consensus seems to be we may see a dip here and there but the fed will absolutely positively bankrupt this fucking country to make sure the S&P stays above 2400.

gotta say tho, its possible they pull it off (on both fronts).

The Fed can't bankrupt the country because they don't spend the country's money. Congress does that.

Also, the country can never go bankrupt.

I'm sorry Sonatine, but I'm leaving you for Walter Sobchak

[lol wow]

Did this Portuguese nigga say quaint

[Sanlmar]

if you print enough dollars, the value of the dollar deflates versus other currencies/goods/standards.

if it suddenly takes 1200 jesusbucks to buy a gallon of gas, we are essentially bankrupt.

So everything you say here is correct. “Everything being equal” if you have a baseline economy and then add extra currency to it you will get inflation. It’s a fairly simple concept.

What isn’t so simple to explain is “everything isn’t equal”. Yes both the Fed on the monetary side and the government on the fiscal side have added trillions of widgets of currency to the economy. I don’t have a calculator but it’s probably around 5 Trillion, maybe more. I did a back of the napkin calculation a few weeks back at the market bottom and came up with 17T of market cap evaporation in the three major stock indexes. That doesn’t account for real estate or intangeable assets or your fathers 56 Mantle. Trillions of widgets of value went “poof”.

Government added 5T, economy lost 20T plus.

Not exactly a fertile ground for inflation.

I am self aware enough to see of the humor of us PFA members discussing economics.

Discussing economics is like discussing music so everyone is entitled to an opinion.

That said and it’s late and I am just typing stream of consciousness..... perhaps this is a parlor game. Here we go.


Trading neither creates wealth nor destroys it.


Ponder this:
Market cap is # shares x share price

Tesla issued around 10 million shares @ $17 during the IPO on June 29 2010. Market cap was $170 million. No matter what ever happens to Tesla’s price that’s all the money they will ever have gotten for those shares.

If on June 30 2010 me and Sonatine trade a share of TSLA at $20 the market cap is now said to be $200 million. The other 9,999,999 shares DID NOT TRADE. One share allegedly created a lot of wealth.

When we talk about evaporating wealth we must tread lightly.

If Sonatine paid me $1000 for Tesla in January and in April it trades @ $500..... well, I still have Sonatine’s $1000.


Money is not wealth
I can’t deal with this now. It’s important obv.

You can argue:
We were in an asset (stonks) bubble January 2020. The incorrect valuation was reset to something one might argue is more correct.

So Daly’s napkin has stimulus propping up previous stimulus that was market corrected in March.

The inflation was in one asset class (the 1%). This time we are doing Fiscal stimulus into the hands of the general population


Just messing around .... I am only talking stonks — not real estate and especially bonds much less collector cars and art

Tune back in tomorrow

[Sanlmar]

Oops

Reading is fundamental.


The topic was inflation.


No inflation now cause there is a demand shock. GDP is gonna be kaka for a good while.


Daly’s kids will see inflation cause that is how .gov gets out of debt by design. They inflate there way out.

Oh, that’s a fucking mortal lock.

[Baron Von Strucker]

So why shouldn't we be investing in gold if we feel this is a high likelihood of happening?

First, because that is not going to happen.

Second, because gold is stupid. For a medium of exchange to work, it has to be in sufficient supply, easily transferable and widely accepted. Gold is none of these things. Hold whatever asset you want, if the trust in the system and its participants breaks down, it will be worthless.

gold in vancouver is easy to get and easy to sell... https://www.vbce.ca

A few reasons to get gold If it is available, gold is better in bullion instead of paper as there is a high chance that there is not enough gold to reconcile the paper.... that being said it has always been a good very long term investment historically, rarly loses a lot of value even in the worst of times such as now.
In Canada at least there is NO TAXES on bullion profits.

It is safer than some volatile currency at the moment IMO

its never wrong to have 5 or 10 oz of gold in the safe deposit box.