Why are we dealing in absolutes?A world of Bitcoins would have us back in a depression far worse that that of the 1930's
he thinks the whole shooting gallery is a QE inflated bubble
There is no doubt that QE has pumped up asset prices. For bonds that is simply a definition. QE is the act of central banks buying up bonds. For other assets there has definitely been a knock on effect. I wouldn't invest in equities myself just now. But to describe the situation as a bubble warranting a flight to gold is a bit wild and possibly irresponsible.What do you think yourself?
There is no doubt that QE has pumped up asset prices. For bonds that is simply a definition. QE is the act of central banks buying up bonds. For other assets there has definitely been a knock on effect. I wouldn't invest in equities myself just now. But to describe the situation as a bubble warranting a flight to gold is a bit wild and possibly irresponsible.
People who save money have one major goal, that it will be able to purchase goods and services when they need it, at reasonably predictable prices. Inflation of the prices of goods and services is simply not happening and I believe the QE will be managed to ensure it won't happen in any big way. To but gold is to protect against some hyper inflationary outcome. That is extremely speculative and people rushing for gold are much more likely to find their real spending power in the future highly uncertain.
If QE causes (hyper) inflation it will because of some very serious misjudgement of monetary economics, and I trust them not to do that.- I do admire your confidence that QE will be managed to ensure price inflation of goods and services.
If QE causes (hyper) inflation it will because of some very serious misjudgement of monetary economics, and I trust them not to do that.
Examples of where I wouldn't trust the custodians of fiat to manage its price level are as follows:
The need to print money to pay crippling reparations (Weimar)
The need to print money to pay for wars (WWII etc.)
The need to print money to pay for disproportionate defense needs (Israel)
The need to print (reserve) money to devalue massive trade imbalances (oil crisis of the 70s)
The need to print money to cover for disastrous economic mis-management (Venezuala)
The need to print money to fund massive corruption on high (Louis XVI, Robert Mugabe et al)
These are situations where there is a huge imbalance in the demands on the economy versus its capabilities. There is currently no evidence of any such imbalance in the economies that affect us.
QE is a technical monetary tactic to try and boost investment, it is not a desperate attempt to live way beyond one's means. It can be unwound as the need requires in a way the above phenomena could not be unwound.
But I could be wrong
The US could be accused of monetary financing of its debt (to fight wars) although the FED would be totally against monetary financing. They would argue that the debt came first by folk including some significant foreign players willingly lending to the US.
Japan has been at this QE thing for ever and has suffered no inflation.
That's my line. How perverse human argumentation is. What I have been citing as clear evidence that bitcoin is a bubble, Liberty Blitz uses to claim the exact opposite. It has become increasingly trendy to go against the "very smart experts" such as in Brexit and Trump victories but it is hardly a long term sustainable philosophy.Liberty Blitzkrieg courtesy TheBigShort said:The consensus among the very smart experts is unanimous: bitcoin is clearly and indisputably a gigantic bubble that’s set to burst.
Liberty Blitz go on to expound on the key tenets of Shortie Syndrome. However given that a primary informer of their reasoning is to reject "the very smart experts" I was not convinced.
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