I will have a look at this further if I get time. Once again my apologies.It yells inflation at us (pun intended).
At some time it will be necessary for fed to increase interest rates and it will crash stock market, I believe.
The only problem I see here is that Buffet indicator is undervaluing the leveraging of profits and equity shift that could be triggered by disruptive technologies from AI/computing power/automation.
Money is just a digital number. The worth of a country's money is not tied to anything besides its desirability of its good and services. As long as the country keep producing goods and services that is desirable, like new technology from Tesla and Apple, the currency will remains strong. Most country with a currency collapse from money printing was due a massive drop in gdp and a massive increase in money supply. Venezuela is the perfect example.
But when money supply increases faster than gdp, isn’t it mandatory that it will lead to inflation?
Gdp is now being powered by ai and automation. Remember how "we are at our highest productivity but no wage increases" verbiage? Guess money printing is making up for some if that deficit. It's almost like we are secretly moving toward to universal basic income but not.
Two issues with this “model” from buffet.
Berkshire Hathaway, first bought 10M shares of Apple in May 2016 for $232M.
Could be but it's only part of the picture. The great nutrient collapse
Further discussion if desired should probably take place in the climate thread Climate Change / Global Warming Discussion
We have been in a deflationary cycle for a long time. Increases in money supply has not been enough to offset decreases in money velocity. Money supply is not the only thing that determine prices. If you have $1 in the economy that is going back and forth nonstop between all the participants, that $1 in theory can support an unlimited amount of value creation. If you have $2 in the economy that only goes from the employer to the employee and stays there because the employee fears unemployment, health issue, or retirement concerns, that $2 is basically dead money. Extreme example to show you how the people’s willingness to spend money is the bigger driver toward inflation than the money supply. Since the early 2000s people have been saving more and spending less. Yes inflation and the resulting interest hike can crash the market but the world economy is too sick to worry about that. Money printing is not the problem but a solution.
If 3/7ths of the USD money supply has been printed in 2020 alone, would the real inflation rate of USD fiat currency be 43% rather than the +-2% reported?
Odd that the mods decided my initial response to this attack was "nasty" but have allowed this completely inaccurate screed to remain. Go back and read my actual posts and tell me where I said Elon "has gone off the deep end" or anything close to that. Further, you keep repeating the same simplistic idea that a faster growing plant is better but that is not always the case.
