Stocks, Gold, & Crypto Crushed As Dollar Spikes! | |
Anonymous Coward User ID: 78215030 United States 09/21/2020 01:06 PM Report Abusive Post Report Copyright Violation | ... Quoting: Anonymous Coward 2492899 Remember, DXY is relative strength, not absolute. The dollar "spiked" (if you could call it a spike) against other major fiat currencies. But guys, we are going to see deflation before we see inflation. All of the macro indicators are deflationary. You can't have large swaths of the economy collapse along with demand and think this is inflationary. It's not. The only thing that will turn this around to inflationary will be Congress. The Fed can't make inflation. Only Congress can with stimulus programs sending the money out into the economy. QE is not inflationary, it's deflationary. It literally reduces the money supply as it removes debt. We are heading for a crash if Congress doesn't authorize stimulus spending. For years I have searched for explainations about why QE is deflationary. You just about explained it in one sentence. It's counterintuitive, but that's how it works. They remove debt in an effort to drive rates lower. It would only become inflationary if the lower rates actually then entice more borrowers to borrow. But if lenders aren't lending...then borrowers aren't borrowing and our debt based money supply is actually shrinking. People act like the money the Fed pays for the bonds is then spent by the banks to buy up equities, but they literally can't spend it. That "money" goes into a special account for them with the Fed and counts toward their reserves. So the banks take a liquid asset (a bond), that they could sell on the market for cash to use as they choose, but instead, they sell it to the Fed in QE which ties up the bond and also ties up the cash in a restricted account. So QE has net reduced the money supply wit the effect of putting downward pressure on interest rates. Steven van Metre is a really good sound financial source on YouTube. It's good to listen to opposing thoughts as it helps us get a bigger picture. I'm long term bearish on the dollar, but short term it's going to pop upward and mid term, we will be dealing with it. Only an a literal act of Congress with stimulus could put downward pressure on it at this point. If QE is deflationary, why have we seen inflation in the price of assets (equities and real estate) over the last ten years? The economy has never really recovered from the 2008 crisis so we can't attribute the increase to economic growth. Also, what's been fueling the unprecedented wealth inequality/transfer, with the top 0.1 having a much larger share of overall wealth? Banks have steadily increased their balance sheets the last 10 years... this will likely continue so any deflation we get will be short term. They will not allow what they should be allowing, the whole system to collapse and reset to weed out the excesses. Do what BRIEF says.. you can't fight the system, so just go along with it or be left behind as your purchasing power goes to shit. [link to www.yardeni.com (secure)] |
Anonymous Coward User ID: 79403302 United States 09/21/2020 01:06 PM Report Abusive Post Report Copyright Violation | [link to www.zerohedge.com (secure)] Quoting: Don Draper from Nantucket Between bad banks behavior, COVID second-wave concerns, and political chaos; it appears markets (particularly stock markets) are waking up from their fiscal and monetary policy inspired dream-state. Stocks are getting spanked... What happened? Did captain queerbait try to declare himself an emperor again. Zuckerberg, I want to punch you right in your vagina. What else is happening? Are you broke yet or do I need to keep campaigning for your demise and utter desparation? |
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rubthebuddha
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Agent 99
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Don Draper from Nantucket
(OP) User ID: 57553864 United States 09/21/2020 01:13 PM Report Abusive Post Report Copyright Violation | ... Quoting: Anonymous Coward 2492899 Remember, DXY is relative strength, not absolute. The dollar "spiked" (if you could call it a spike) against other major fiat currencies. But guys, we are going to see deflation before we see inflation. All of the macro indicators are deflationary. You can't have large swaths of the economy collapse along with demand and think this is inflationary. It's not. The only thing that will turn this around to inflationary will be Congress. The Fed can't make inflation. Only Congress can with stimulus programs sending the money out into the economy. QE is not inflationary, it's deflationary. It literally reduces the money supply as it removes debt. We are heading for a crash if Congress doesn't authorize stimulus spending. For years I have searched for explainations about why QE is deflationary. You just about explained it in one sentence. It's counterintuitive, but that's how it works. They remove debt in an effort to drive rates lower. It would only become inflationary if the lower rates actually then entice more borrowers to borrow. But if lenders aren't lending...then borrowers aren't borrowing and our debt based money supply is actually shrinking. People act like the money the Fed pays for the bonds is then spent by the banks to buy up equities, but they literally can't spend it. That "money" goes into a special account for them with the Fed and counts toward their reserves. So the banks take a liquid asset (a bond), that they could sell on the market for cash to use as they choose, but instead, they sell it to the Fed in QE which ties up the bond and also ties up the cash in a restricted account. So QE has net reduced the money supply wit the effect of putting downward pressure on interest rates. Steven van Metre is a really good sound financial source on YouTube. It's good to listen to opposing thoughts as it helps us get a bigger picture. I'm long term bearish on the dollar, but short term it's going to pop upward and mid term, we will be dealing with it. Only an a literal act of Congress with stimulus could put downward pressure on it at this point. If QE is deflationary, why have we seen inflation in the price of assets (equities and real estate) over the last ten years? The economy has never really recovered from the 2008 crisis so we can't attribute the increase to economic growth. Also, what's been fueling the unprecedented wealth inequality/transfer, with the top 0.1 having a much larger share of overall wealth? Very good question! PLATA BITCHEZZZZZZ UPGRADE UNAVAILABLE The Rolling Stones said it best... "What's confusing you is the nature of my game" |
Don Draper from Nantucket
(OP) User ID: 57553864 United States 09/21/2020 01:15 PM Report Abusive Post Report Copyright Violation | [link to www.zerohedge.com (secure)] Quoting: Don Draper from Nantucket Between bad banks behavior, COVID second-wave concerns, and political chaos; it appears markets (particularly stock markets) are waking up from their fiscal and monetary policy inspired dream-state. Stocks are getting spanked... What happened? Did captain queerbait try to declare himself an emperor again. Zuckerberg, I want to punch you right in your vagina. What else is happening? Are you broke yet or do I need to keep campaigning for your demise and utter desparation? Gotta admit you got moxie kid! PLATA BITCHEZZZZZZ UPGRADE UNAVAILABLE The Rolling Stones said it best... "What's confusing you is the nature of my game" |
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Agent 99
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Agent 99
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Agent 99
User ID: 77082640 United States 09/21/2020 01:27 PM Report Abusive Post Report Copyright Violation | ... Quoting: Anonymous Coward 71991067 For years I have searched for explainations about why QE is deflationary. You just about explained it in one sentence. It's counterintuitive, but that's how it works. They remove debt in an effort to drive rates lower. It would only become inflationary if the lower rates actually then entice more borrowers to borrow. But if lenders aren't lending...then borrowers aren't borrowing and our debt based money supply is actually shrinking. People act like the money the Fed pays for the bonds is then spent by the banks to buy up equities, but they literally can't spend it. That "money" goes into a special account for them with the Fed and counts toward their reserves. So the banks take a liquid asset (a bond), that they could sell on the market for cash to use as they choose, but instead, they sell it to the Fed in QE which ties up the bond and also ties up the cash in a restricted account. So QE has net reduced the money supply wit the effect of putting downward pressure on interest rates. Steven van Metre is a really good sound financial source on YouTube. It's good to listen to opposing thoughts as it helps us get a bigger picture. I'm long term bearish on the dollar, but short term it's going to pop upward and mid term, we will be dealing with it. Only an a literal act of Congress with stimulus could put downward pressure on it at this point. If QE is deflationary, why have we seen inflation in the price of assets (equities and real estate) over the last ten years? The economy has never really recovered from the 2008 crisis so we can't attribute the increase to economic growth. Also, what's been fueling the unprecedented wealth inequality/transfer, with the top 0.1 having a much larger share of overall wealth? Very good question! You guys act like there is someone Grand Wizard sitting at the Fed Front Desk moving these numbers around. It doesn't work like that. |
Anonymous Coward User ID: 79401328 United States 09/21/2020 01:27 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 78286955 South Africa 09/21/2020 01:39 PM Report Abusive Post Report Copyright Violation | |
1415215425
User ID: 76419931 United States 09/21/2020 01:39 PM Report Abusive Post Report Copyright Violation | If the dollar is so strong, then why is the rest of the world trying to dump them?.... This is the last swan song, maybe? but it's coming someday. Quoting: taternuts Its going to end in national default. Dollar is dead and the wealthy don't know what to do. All my post are theatrical artistic writing . |
Sotired
User ID: 2492899 United States 09/21/2020 01:45 PM Report Abusive Post Report Copyright Violation | ... Quoting: Anonymous Coward 2492899 Remember, DXY is relative strength, not absolute. The dollar "spiked" (if you could call it a spike) against other major fiat currencies. But guys, we are going to see deflation before we see inflation. All of the macro indicators are deflationary. You can't have large swaths of the economy collapse along with demand and think this is inflationary. It's not. The only thing that will turn this around to inflationary will be Congress. The Fed can't make inflation. Only Congress can with stimulus programs sending the money out into the economy. QE is not inflationary, it's deflationary. It literally reduces the money supply as it removes debt. We are heading for a crash if Congress doesn't authorize stimulus spending. For years I have searched for explainations about why QE is deflationary. You just about explained it in one sentence. It's counterintuitive, but that's how it works. They remove debt in an effort to drive rates lower. It would only become inflationary if the lower rates actually then entice more borrowers to borrow. But if lenders aren't lending...then borrowers aren't borrowing and our debt based money supply is actually shrinking. People act like the money the Fed pays for the bonds is then spent by the banks to buy up equities, but they literally can't spend it. That "money" goes into a special account for them with the Fed and counts toward their reserves. So the banks take a liquid asset (a bond), that they could sell on the market for cash to use as they choose, but instead, they sell it to the Fed in QE which ties up the bond and also ties up the cash in a restricted account. So QE has net reduced the money supply wit the effect of putting downward pressure on interest rates. Steven van Metre is a really good sound financial source on YouTube. It's good to listen to opposing thoughts as it helps us get a bigger picture. I'm long term bearish on the dollar, but short term it's going to pop upward and mid term, we will be dealing with it. Only an a literal act of Congress with stimulus could put downward pressure on it at this point. If QE is deflationary, why have we seen inflation in the price of assets (equities and real estate) over the last ten years? The economy has never really recovered from the 2008 crisis so we can't attribute the increase to economic growth. Also, what's been fueling the unprecedented wealth inequality/transfer, with the top 0.1 having a much larger share of overall wealth? Lending. Lending growth is what is inflationary and QE kept rates very low for a long time making it almost stupid not to borrow more than you normally would have. That's what causes inflation in our debt based system. Why do housing prices keep going up? Because people can borrow to buy more than they could normally afford driving prices higher. Why did they crash in 2007? Because adjustable rate mortgages readjusted to higher rates making payments unaffordable for many. This caused a wave of defaults, which was magnified by the securitization of these shit mortgages causing heavy losses and accelerated the tightening of credit until it completely seized up. Even when the Fed came to the rescue to add liquidity, lending standards were VERY tight. There was a period where basically it was only people with cash able to take advantage of the dip in prices. It was only after prices began to rise again that lending eased and people could start to go back to bidding them higher. Same thing with higher education. Why are prices so high? Lending. People can go deep into debt to afford ridiculously priced degrees that they couldn't otherwise afford allowing colleges to jack up the price. However, now that lending has ground to a halt, you will now see deflationary pressures. QE is deflationary, but it contributes to an inflationary environment...BUT ONLY IF THERE IS LENDING GROWTH. If there is no lending growth, then QE is just what it is...a tool that causes deflation in order to put downward pressure on interest rates and take some bad debt out of the system. But don't misunderstand that taking debt out of the system is indeed deflationary. Our money is debt. The more people borrow, the more "money" is in the system, because every debt is somebody else's asset. |
Sotired
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CosmicRays
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Wormhole traveler
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1415215425
User ID: 76424431 United States 09/21/2020 02:25 PM Report Abusive Post Report Copyright Violation | We have a bunch of worthless fks running the USA. The founding principles made America wealthy. Now we are poor self absorbed chumps. This nation is done. Just a matter of time before terrorist domestic factions start forming in the usa. Last Edited by messagehalted on 09/21/2020 02:25 PM All my post are theatrical artistic writing . |
Wizer
User ID: 79397502 Canada 09/21/2020 02:25 PM Report Abusive Post Report Copyright Violation | sucks..I always learned buy when there is blood in the street and sell when there is a party..but I am a dollar cost average buy and hold kindof guy..used to do dips and drips but the paperwork for owning 40 diff companies come tax time was horrific... Quoting: diverdan01 " They " have been controlling the markets since before the inception of the modern economic exchange. So everyone is going to be relying on " tried and true " market strategies and all going to fail. Only " they " on the inside will know and likely have already cashed out. Everyone knows that USA planning EMP false flag, then invade Iran and China....so everyone is cashing out before this shit goes down. I'd by Sept 28th. Wizer |
Don Draper from Nantucket
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Billy Chapel
User ID: 79280147 United States 09/21/2020 02:58 PM Report Abusive Post Report Copyright Violation | True. The manipulators are just manipulatin'. They need to be taken out and hung by their heels. People playing stock market games are just allowing their capital to be looted. "Peace in our time? All it took was everybody about to die." “The way I see it, there’s only three kinds of people in this world. Bad ones, ones you follow, and ones you need to protect.” - Amos Burton |
Anonymous Coward User ID: 79300919 Canada 09/21/2020 03:10 PM Report Abusive Post Report Copyright Violation | ... Quoting: Anonymous Coward 71991067 For years I have searched for explainations about why QE is deflationary. You just about explained it in one sentence. It's counterintuitive, but that's how it works. They remove debt in an effort to drive rates lower. It would only become inflationary if the lower rates actually then entice more borrowers to borrow. But if lenders aren't lending...then borrowers aren't borrowing and our debt based money supply is actually shrinking. People act like the money the Fed pays for the bonds is then spent by the banks to buy up equities, but they literally can't spend it. That "money" goes into a special account for them with the Fed and counts toward their reserves. So the banks take a liquid asset (a bond), that they could sell on the market for cash to use as they choose, but instead, they sell it to the Fed in QE which ties up the bond and also ties up the cash in a restricted account. So QE has net reduced the money supply wit the effect of putting downward pressure on interest rates. Steven van Metre is a really good sound financial source on YouTube. It's good to listen to opposing thoughts as it helps us get a bigger picture. I'm long term bearish on the dollar, but short term it's going to pop upward and mid term, we will be dealing with it. Only an a literal act of Congress with stimulus could put downward pressure on it at this point. If QE is deflationary, why have we seen inflation in the price of assets (equities and real estate) over the last ten years? The economy has never really recovered from the 2008 crisis so we can't attribute the increase to economic growth. Also, what's been fueling the unprecedented wealth inequality/transfer, with the top 0.1 having a much larger share of overall wealth? Lending. Lending growth is what is inflationary and QE kept rates very low for a long time making it almost stupid not to borrow more than you normally would have. That's what causes inflation in our debt based system. Why do housing prices keep going up? Because people can borrow to buy more than they could normally afford driving prices higher. Why did they crash in 2007? Because adjustable rate mortgages readjusted to higher rates making payments unaffordable for many. This caused a wave of defaults, which was magnified by the securitization of these shit mortgages causing heavy losses and accelerated the tightening of credit until it completely seized up. Even when the Fed came to the rescue to add liquidity, lending standards were VERY tight. There was a period where basically it was only people with cash able to take advantage of the dip in prices. It was only after prices began to rise again that lending eased and people could start to go back to bidding them higher. Same thing with higher education. Why are prices so high? Lending. People can go deep into debt to afford ridiculously priced degrees that they couldn't otherwise afford allowing colleges to jack up the price. However, now that lending has ground to a halt, you will now see deflationary pressures. QE is deflationary, but it contributes to an inflationary environment...BUT ONLY IF THERE IS LENDING GROWTH. If there is no lending growth, then QE is just what it is...a tool that causes deflation in order to put downward pressure on interest rates and take some bad debt out of the system. But don't misunderstand that taking debt out of the system is indeed deflationary. Our money is debt. The more people borrow, the more "money" is in the system, because every debt is somebody else's asset. While I agree that lending has been a huge factor fueling these asset bubbles, I don't think it's enough to explain everything. For example, stocks crashed in March at the fastest level ever recorded, which is logical given that we've never experienced an economic shock as bad as this one. Despite that, and with no indication that the economy was anything but terminally ill, the bear market downturn ended up being the shortest on record and recovered within weeks. If banks weren't using these new reserves to directly prop up the stock market, how did the markets recover so quickly? Low interest rates are not nearly a strong enough tool to create that type of response in this economic environment. |
M R E
User ID: 71630411 United States 09/21/2020 03:26 PM Report Abusive Post Report Copyright Violation | We have a bunch of worthless fks running the USA. The founding principles made America wealthy. Now we are poor self absorbed chumps. This nation is done. Just a matter of time before terrorist domestic factions start forming in the usa. Quoting: 1415215425 We turned from a great product producing creditor nation to a non producing debtors nation, we produce nothing now but consumers and debt, until this changes we are done! Term limits would be a start in the right direction, Lobbyist and greed destroyed America, people like Biden and Sanders are the problem, they sold us out to China, you can add many others to the list including many Republicans! would rather have it & not need it then need it & not have it |
Anonymous Coward User ID: 77436828 United States 09/21/2020 03:29 PM Report Abusive Post Report Copyright Violation | [link to www.zerohedge.com (secure)] Quoting: Don Draper from Nantucket Between bad banks behavior, COVID second-wave concerns, and political chaos; it appears markets (particularly stock markets) are waking up from their fiscal and monetary policy inspired dream-state. Stocks are getting spanked... LAST DEAD CAT BOUNCE EVER! |
Agent 99
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M R E
User ID: 71630411 United States 09/21/2020 03:34 PM Report Abusive Post Report Copyright Violation | ... Quoting: Anonymous Coward 2492899 It's counterintuitive, but that's how it works. They remove debt in an effort to drive rates lower. It would only become inflationary if the lower rates actually then entice more borrowers to borrow. But if lenders aren't lending...then borrowers aren't borrowing and our debt based money supply is actually shrinking. People act like the money the Fed pays for the bonds is then spent by the banks to buy up equities, but they literally can't spend it. That "money" goes into a special account for them with the Fed and counts toward their reserves. So the banks take a liquid asset (a bond), that they could sell on the market for cash to use as they choose, but instead, they sell it to the Fed in QE which ties up the bond and also ties up the cash in a restricted account. So QE has net reduced the money supply wit the effect of putting downward pressure on interest rates. Steven van Metre is a really good sound financial source on YouTube. It's good to listen to opposing thoughts as it helps us get a bigger picture. I'm long term bearish on the dollar, but short term it's going to pop upward and mid term, we will be dealing with it. Only an a literal act of Congress with stimulus could put downward pressure on it at this point. If QE is deflationary, why have we seen inflation in the price of assets (equities and real estate) over the last ten years? The economy has never really recovered from the 2008 crisis so we can't attribute the increase to economic growth. Also, what's been fueling the unprecedented wealth inequality/transfer, with the top 0.1 having a much larger share of overall wealth? Lending. Lending growth is what is inflationary and QE kept rates very low for a long time making it almost stupid not to borrow more than you normally would have. That's what causes inflation in our debt based system. Why do housing prices keep going up? Because people can borrow to buy more than they could normally afford driving prices higher. Why did they crash in 2007? Because adjustable rate mortgages readjusted to higher rates making payments unaffordable for many. This caused a wave of defaults, which was magnified by the securitization of these shit mortgages causing heavy losses and accelerated the tightening of credit until it completely seized up. Even when the Fed came to the rescue to add liquidity, lending standards were VERY tight. There was a period where basically it was only people with cash able to take advantage of the dip in prices. It was only after prices began to rise again that lending eased and people could start to go back to bidding them higher. Same thing with higher education. Why are prices so high? Lending. People can go deep into debt to afford ridiculously priced degrees that they couldn't otherwise afford allowing colleges to jack up the price. However, now that lending has ground to a halt, you will now see deflationary pressures. QE is deflationary, but it contributes to an inflationary environment...BUT ONLY IF THERE IS LENDING GROWTH. If there is no lending growth, then QE is just what it is...a tool that causes deflation in order to put downward pressure on interest rates and take some bad debt out of the system. But don't misunderstand that taking debt out of the system is indeed deflationary. Our money is debt. The more people borrow, the more "money" is in the system, because every debt is somebody else's asset. While I agree that lending has been a huge factor fueling these asset bubbles, I don't think it's enough to explain everything. For example, stocks crashed in March at the fastest level ever recorded, which is logical given that we've never experienced an economic shock as bad as this one. Despite that, and with no indication that the economy was anything but terminally ill, the bear market downturn ended up being the shortest on record and recovered within weeks. If banks weren't using these new reserves to directly prop up the stock market, how did the markets recover so quickly? Low interest rates are not nearly a strong enough tool to create that type of response in this economic environment. The Federal reserve is who is propping up the markets, they are buying stocks and most bonds especially junk bonds, if this market keeps this current slide they will buy even more, their balance sheet since March has gone from $4.5 Trillion to over $7 Trillion! would rather have it & not need it then need it & not have it |