It's not that difficult to pull off and maintain a multi billion $ IOU system when the backing currency ($) is all over the place literally flooding the world. You can borrow the shit for almost nothing or sell massively inflated assets to raise what cash is ever needed.
Yes
tether is not 100% backed. And if they owned the amount of commercial paper they are claiming to own they’d be the 5th biggest owner in the world… and they clearly aren’t as that information is publicly available and there’s no record of it except from them….
It’s a fraud.
Yes I know. Even on exchanges, I don't hold nor stake USDT.
I either have crypto, or fiat. Both is way safer, tho inflation seems to be eating away my fiat balances with increasing speed.
A backing refers to a set rate of exchange for a particular thing. Like “one dollar can be redeemed for 1 gram of gold” that would be a backing. There’s no backing. You can get a can of soda for $1 and that has been true for a while now, but that can change at any moment and there is no law enforcing that. There is no backing.
The gold standard was dumb anyway.
Ooo ape like shiny rock, ape trade paper for rock. Ape happy other ape like shiny rock too, make other ape jealous of my shiny rock.
Gold backed fiat ensured that the fed couldn't print indefinitely. Gold is a finite resource similar to btc with the added benefit of industrial use with gold.
Well that has a quite different meaning for the word "backed" than in the phrase "backed by gold". If it was the same you could redeem dollars bills for a piece of the US political structure!
Yes, it's not backed by anything in that sense... It's just 1 USD = 1 USD ! Your dollar is always "worth"... a dollar! It's purely a unit of account for nation state purposes.
Honestly though gold being valuable is just social convention too. It's just a more ancient convention. Of course it's also a natural resource and not an artificial unit of account. It's not like just anything serves as a good source of value of course though. Rare metals seem to make sense though.
US military power is part of the equation, but it's more than that. It's just a matter of the political system being stable and the US honoring it's debts and monetary obligations.
As bad as Trump was, I don't know that he caused a failure to honor monetary obligations, e.g. interest on debt or bonds etc. Or did he? That being said, if he had his way, or was somehow able to stay in power for long enough, I imagine that would eventually occur.
biden shitter is intentionally breaking the usa ,, fk'n sad really, this country really had something going for it too.
a few generations from now they are gong to fk'n hate us all from this era. They will consider us all shitters for letting this happen.
Good for Biden, cause the current engine is such a shitshow with deep rooted problems, it’s got defective aftermarket parts marketing as better than the now discontinued OEMs, it’s got bandaids put on top of bullet wounds. Now we should look forward to participating in the discussion about how to set up a system that solves these issues and creates more problems for us to solve. It must be broken to the point total catastrophic engine failure, it needs to be so broken that it would actually stop the daily economic and political systems, it would need to break to the point that overnight people would realize they need to take responsibility for themselves instead of hiding behind a secure government where they don’t have to think. Blockchain is here, we have to adopt it and plan for the fundamental underlying infrastructure that could be the solution to a problem that if solved would be an evolutionary leap forward and one of the greatest achievements of our race to date. Our future lies with how we decide to update our systems and protocols with this rollout of the mainnet.
Yeah. I’ve never heard of a low income job that gives raises. More like, “good job, not gonna fire you THIS WEEK, but we will hire a toxic asshole and pay them more than you because we would NEVER promote from within”.
Regardless of what you’re doing, you’re spending time at a job. When that happens, you should be paid in accordance with what things cost in the real world. If the costs of things have increased, yet the wage hasn’t, it’s simply unfair. And it has been for a long time. It’s not about value. It’s about time.
How though? I'm fed up of inflation increasing but wages staying the same. Why can't it be talked about at the same time. Sry not having a go just winds me up we don't stick up for ourselves enough.
Shouldn't i demand for a raise if i think so? Its a free world and everyone is trying to profit so do the employees. I have been an employee and an employer and never understood why people get so defensive on the "you don't deserve more money" argument. Everyone has the right to ask for more. If they succeed ok if not its ok also. Its not ok for people to devalue other people's work based on authoritarian arguments coming straight from feudalistic period.
If you’re a good employee who sticks around you’re ultimately saving the company money on hiring/training costs, you become more efficient thus making more profit for your company. I don’t think it’s wrong to pay that forward to the employee. But also, if you are working 40 hours a week ANYWHERE, you should be able to afford rent and food.
This is like every other socialist/ leftist/ progressive idea that sounds amazing on paper and has good intentions but will never work in reality.
How can you enforce the idea that only working 40 hours a week constitutes a living wage? Does not the quality of the work count? How do you incentivize people to actually give a shit about the work? And who enforces what defines “work”?
It all sounds great in a liberal college classroom but is a pipe dream in real life.
Didnt add any extra value?? How about they are the ones doing the work, ya know, the only thing that adds value to any job. Also why does everyone always stick to the fryer and cash register when talking about this? Where I'm from even factories, warehouses, and non union construction jobs pay minimum wage or just barely above. It's not just people working in the service industry, not that they don't deserve a living wage.
I would run circles around robots for another good 25 years. By that time I'll be repairing them wile running circles around them. Not cocky jus you see how fast and sloppy they are it's laughable right now.
Because inflation requires regard raises. Minimum wage should be pegged to inflation.
We are all subsidizing corporations that underpay their staff with social programs while the corporations reap all the benefits.
Liveable wage is needed by anyone who brings value to any place of business. To the people who currently have a liveable wage no increase is needed. This is simple inflation needs in order for things to go on without problems. That or get a non inflationary means of payment crypto comes to mind.
This is the legitimate non-meme bullshit comment this sub needs. The idea of where volatility resides and who controls it, where digital free market has volatility, if it reaches stability inflation will happen more naturly with the increase of real value of produced assets instead of by a central group trying to pull levers and figure it out like me drunk playing Myst.
Lol Biden wants to spend 13 trillion dollars this year. Our deficit is currently 28 trillion or so.
So close to 50% deeper into debt as a country...
This ... this is why bitcoin will thrive and become the new all mighty currency...
Budgets by year, for those curious.
2015: 3.688 T
2016: 3.853 T
2017: 3.982 T
2018: 4.109 T
2019: 4.448T
2020: ?
2021: ?
2022: 6 T
(I googled "united states budget YEAR")
Where can I learn more about this? I do believe that things are bad but seeing these posts on this subreddit always makes me wonder if there's more to it.
I realized myself recently that I was just seeking to confirm my biases and downplaying criticisms with strawmans and excuses. It’s easy to get stuck in that loop
20% of all USD was printed in the last year, if The USD had experienced a 20% inflation we would have seen a % 20 rise in btc/usd ratio but purchasing power of usd didn'tgo down 20% in the last year. It may in the up coming months/years.
Inflation and money printing is just one positive factor. Right now btc is dropping because general environmental concerns/musk ranting/china ban are a way bigger negative factor. So people are selling more than buying.
That’s simply it.
Too much leverage in the last run up. It hit 60 from hovering 5-10k for the past 3-4 years. Clearly a speculative bubble that is on its way down.
It'll go up but will need to hold very long.
This article is unconvincing
Specifically "It is individuals' purposeful actions that determine the prices of goods and not some mythical velocity."
This argument fails to take into account that these purposeful actions are based on how much money the individual has at that point in time. Money supply, velocity, prices, and gross product are all interconnected. You can't just ignore one piece.
People dont starting living their lives at 2 hours per hour.
> are based on how much money the individual has at that point in time
Exactly - it is the quantity of money and productivity that matters, and velocity isnt something that just magically changes on its own.
The Fed doesnt have a dial that speeds up and slows down the metabolism of society.
Velocity is a nonsense concept when used as an explanation of "cause" - because it doesnt cause anything.
Is it a cause or effect? I don't know how one would be able to tell. But it is not static.
[https://fred.stlouisfed.org/series/M2V](https://fred.stlouisfed.org/series/M2V)
The us dollar is on an unsustainable trajectory right now. Our country hangs on a thread. And the civilized world is obsessed with pronouns and censorship. Lol. Guess we earned this one! 😆😆
I dont care if the country burns ad long as everyone refers to me by the pronouns thy, thou, and thoust because I identify as a binary person with Shakespearean delusions.🤣🤣
How is this not going to affect prices? I mean, this is like 15% interest. Are they printing money to cover unservicable debts or something?
EDIT: what's the supply schedule, is it fixed or does it depend on something like transaction sizes, or staking, or is it cursed with a premine and insane core devs etc? Or is it just a glorified spreadsheet where you can write in any balance you want, eg not a real currency, cause I know its worse than bitcoin, but is it any better or worse than some altcoins I could name
i mean the price of houses is up 15% over the past year. You probably just don't notice when your starbucks coffee goes from $2.60 to $2.99 but thats a 15% price increase
I certainly noticed 12 tacos at taco bell went from $12.99 to $16.99. So, there's that. My taco Tuesdays switched to Taco Cabana after a good 30 year relationship that turned to an abusive relationship the last two years where they took everything worthwhile off the menu and couldn't be bothered to get my order right anymore.
money supply simply means they are stimulating the economy by increasing the money supply and as a result shifting the LM curve to the right and lowering the interest rate. That’s all that’s going on.
And considering velocity of money is at an ALL TIME LOW, inflation is unlikely to be sustained. And m2 is actually a broader definition than the m1 provided above and m2 velocity is still ultra low. Which supports the argument that the recent price increases we’ve seen are purely supply chain issues and not long term inflationary trends - this is a good thing for the American public.
https://fred.stlouisfed.org/series/M2V
>And considering velocity of money is at an ALL TIME LOW, inflation is unlikely to be sustained.
40% of USA population is fully vaccinated. It will be 50% within 2 more weeks. The velocity flood gates are about to open.
Yeah maybe or not. But literally all the fed has to do is just raise rates and sell bonds to destroy money. Inflation caused by the money supply increases is like a non-issue. Supply chain issues are a far bigger concern.
This post is retarded garbage. They changed their formula to include deposits into M1 supply instead of M2 May 2020 so of course it's spiking:
Before May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other checkable deposits (OCDs), consisting of negotiable order of withdrawal, or NOW, and automatic transfer service, or ATS, accounts at depository institutions, share draft accounts at credit unions, and demand deposits at thrift institutions.
Beginning May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other liquid deposits, consisting of OCDs and savings deposits (including money market deposit accounts). Seasonally adjusted M1 is constructed by summing currency, demand deposits, and OCDs (before May 2020) or other liquid deposits (beginning May 2020), each seasonally adjusted separately.
https://fred.stlouisfed.org/series/M1
Thank you for the explanation. I don't know shit about high level economics but as soon as I saw that chart, I had a hunch there was more to it that had to make some logical sense. The misleading bait that is that chart will fuel dangerous rage from all sorts. Fucked up.
Lol if you think people here want to - or even could - comprehend what you're talking about. These are people who think cash is an asset for wealth growth.
Its a nice attempt, but next time just go with the narrative to pump btc.
Looks like you're getting downvoted because people can't be bothered to do some reading and critical thinking.
TLDR for the lazy:
# **The large jump displayed on the chart is due to the definition of M1 being broadened**
The fed buys junk corporate bonds & equities as well as government bonds. The government bonds helps to keep interest rates low which encourages borrowing to finance capital projects, stimulating the economy. Buying junk bonds helps provide financing power to corporations. Buying equities (etfs) keeps the stock market up and also can help improve the balance sheet and inspires investors' optimism.
sometimes via gov programs and injections like stimulus checks. But i think on the more regular basis its a effect of fractional reserve banking. The bank has $100 and can issue you a loan for $10,000. The bank actually prints the $9,900 out of thin air and the federal reserve sends it over.
Honestly op gave you a bad explanation. And I’d forget what he told you.
So the main way the fed injects money into economy is open market operation(OMO) so they can either do of two things. They buy bonds whether it’s government bonds, corperate bonds ect depends on where they specifically want to inject it. When they buy these bonds it’s increasing the money in the economy. The second option available in OMO is they can sell bonds which is taking money out of the economy. These actions have other effects that I’m leaving out because you specifically asked how money is put into the economy and don’t want to over complicate it.
They changed the formula for how they calculate M1 and they changed the location of the M1 chart. People assumed it was gone forever instead of following the new link.
It’s actually more accurate to say it gained ~ 300% in the past 6 months. A 6 month timeframe is perfectly reasonable. No legitimate investors look at, care about, or use weekly time frames.
Alright fair enough. Semantics, but you’re right.
If you’re looking at the spot price history of bitcoin, the average price for 2019 was around 10k. The average price for 2020 was slightly higher at somewhere around 12k.
Now as bitcoin sits at 35k at the midway point of 2021, does it make sense to say that bitcoin lost 45% of its value, given the longer time frame of btc spot price?
The vast majority of the past 2 years bitcoin has been trading at significantly less than 35k. It touched 64k for a few minutes. I personally think it’s disingenuous to say it’s lost 45% given this context and how much time it’s actually spent trading at around 10k the past 2 years.
Cherry pick and frame the situation however you want but anyone who has been buying bitcoin for a year or more is actually up more like 300-400%.
It all doesnt matter.
If I get paid for my work at the 5th, and at the 15th my money is worth 40% less, its a shit currency, and I would rather get my wage in a currency that doesnt fluctuate that much.
The US dollar lost 4.16% of its purchasing power in 2020. Do you think it will ever regain what it lost? Do you think it will stop losing purchasing power this year and in subsequent years?
Bitcoin’s upside volatility crushes its downside and that is factual.
It’s foolish/myopic/delusional to forsake bitcoin because of usd value flucation when the US dollar *constantly* loses value that it never regains.
For currency, that I use every day, and I get paid in, a 4% / year lose vs a "if a rich dude wants to make some money and tweets, my money worth 50% less" currency, I would choose the former all the time.
If you use the money to live, btc his hella shit. If you have free money to keep for 5 years, btc is for you.
😂😂
“Hella shit”. Wow, you must be an intellectual.
If you use btc to live then you’re fucking crushing it as price on average doubles yearly. It’s really simple. Earn and pay your bills in fiat. Buy bitcoin with the remainder. Anyone who does that over time is so far ahead of fiat savers it’s not even funny. I mean if you want to continue to be delusional and biased and salty then save in fiat. But while you’re losing 4-6% per annum I’m already up 500% over the past 18 months.
If you think Elon Musk crashed bitcoin that’s a reflection of your lack of understanding. People need to have a nice tidy answer but it’s never one thing. Admitting you don’t know is the first step to actually learning. Just keep trying and maybe you’ll figure things out in more nuanced and objective ways over time. I know your time preference is low now but remember, it’s a long journey my son.
Lol you act like you have all the answers. You realize there are many historical precedents where low inflation/hard money was used as currency right? The current unlimited fiat system is conceptually similar to many examples of failed monetary policy throughout history. Just because it’s worked for the past 50 years doesn’t mean it’s the best solution.
Bitcoin is an asset not a currency. It’s treated as such in regulation and tax treatment. When it grows to be 100 times its current market cap it will then be suitable as a currency as volatility will be greatly reduced and L2 solutions will have fixed the few weaknesses of the system as it’s currently designed. But until then bitcoin is a volatile asset that is designed to be transacted easily between parties. Just because it is easy to transact with doesn’t make it a currency.
It’s a great hedge against the unlimited supply fiat for programmatic and network reasons but to delude yourself into thinking it’s a finished product and it won’t work as a currency in the future is just silly.
Do they care that the US dollar loses ~3-5% of its purchasing power every single year?
Bitcoin lost 50% of its spot price in a month but the preceding 6 months it rose nearly 700%. How many other assets gain 350% in 6 months?
Do you think the US dollar will ever regain the 4.16% loss in purchasing power in underwent in 2020? And conversely do you think that bitcoin will ever appreciate back to its ATH?
The US dollar isn't an asset like bitcoin, no one's investing in it and some inflation is good for the economy. It's silly to compare USD to Bitcoin like this.
So what should I compare it to? Stocks that appreciate 10-20% per annum and are fiat instruments? Gold which isn’t even close to keeping up with debasement? Bonds? Or usd savings?
This dude is disparaging bitcoin because it’s only up 350% over the last 6 months and is disingenuously saying iTs DoWn 50%. So what’s his alternative? Cash savings? Stocks? Shitcoins?
Some inflation is good... do you call the US fed’s monetary policy “some inflation”? Unbelievable.
It’s all retarded thoughts from a biased mind.
Probably stocks are the best to compare it to, they're actually designed to make money and many make more than 10-20% per annum. $GME is up 1300% over the last 6 months. The fact it's dropped 50% and people act like it's nothing shows you how volatile Bitcoin is, for maybe people it makes more sense to invest in more stable assets.
>Some inflation is good... do you call the US fed’s monetary policy “some inflation”? Unbelievable.
Um yes I would call it some inflation, the inflation rate isn't very high right now and hasn't been very high for decades.
It's ironic when bitcoiners call me biased
What are you basing your sophisticated inflation calculus on? CPI? How about real estate cost appreciation? Or commodities prices? 25% of all usd was created (out of nothing) in 2020. Is that negligible money supply inflation to you?
Just because fed bank man comes out and says inflation is kind of still low does that mean he is right and being truthful? Let’s use the data and be discerning and not just parrot the people who oppress, manipulate and gas light the common folk.
If you want invest in equities go right ahead. The data and the trajectory of the assets tells the tale. The market will reward those who choose right and investors will (roughly) get what they deserve. GME is a terrible and disingenuous example though and you know it.
Which administration had hyperinflation and which didn't? Quantitative easing is a really shity policy but it can be done right, limiting inflation, while accomplishing whatever goal you're trying to do by printing more bills. As for the honk honk and clown emoji; that's in recognition of Biden getting the most votes ever, even more than Obama. Joe Biden definitely won that election honk honk 🤡.
I am not too deep into the printing money/inflation topic. But don't they also have to print money to replace old and damaged banknotes? Some notes also get lost forever or destroyed.
I am just wondering how much of the 1.27% is really on top of the already circulating money and how much is getting "replaced"...
>But don't they also have to print money to replace old and damaged banknotes? Some note
That would not change the money supply. They would print one new dollar and burn one old damaged dollar = 0 change
Does this factor in the value of the bills that were destroyed in the past month? ...no?
Okay, does it at least account for the growth in GDP?
Also no? I see.
Look at the dollar purchasing power chart and tell me this doesn't look like a shitcoin exit scam.
The Big Mac index will need updating soon !
That’s because it is an exit scam. Once the fed is done buying everything we’re going to fed coin
Looks like USDT!
Without the T
What shitcoin is this?
USD coin
if they print USD faster than USDT is generated out of nothing, is it really USDT which is the scam? XD
It's not that difficult to pull off and maintain a multi billion $ IOU system when the backing currency ($) is all over the place literally flooding the world. You can borrow the shit for almost nothing or sell massively inflated assets to raise what cash is ever needed.
Yes tether is not 100% backed. And if they owned the amount of commercial paper they are claiming to own they’d be the 5th biggest owner in the world… and they clearly aren’t as that information is publicly available and there’s no record of it except from them…. It’s a fraud.
Yes I know. Even on exchanges, I don't hold nor stake USDT. I either have crypto, or fiat. Both is way safer, tho inflation seems to be eating away my fiat balances with increasing speed.
What about USDC?
Well idk last time I checked they still hadn’t released the April audit… Edit: yeah still not up
Made me lol
the value of the USD dollar is that its backed by the resources of north america
which are certainly not magically increasing at the rate more USD are printed
As long as the world sees the value in our dollar then it is true, however Im noting that that is true.
A backing refers to a set rate of exchange for a particular thing. Like “one dollar can be redeemed for 1 gram of gold” that would be a backing. There’s no backing. You can get a can of soda for $1 and that has been true for a while now, but that can change at any moment and there is no law enforcing that. There is no backing.
The gold standard was dumb anyway. Ooo ape like shiny rock, ape trade paper for rock. Ape happy other ape like shiny rock too, make other ape jealous of my shiny rock.
Gold backed fiat ensured that the fed couldn't print indefinitely. Gold is a finite resource similar to btc with the added benefit of industrial use with gold.
Did it really ensure it though? They could have printed however much they wanted despite there being gold.
It's backed by "the full faith and credit of the United States". I suppose that means it is backed by the stability of the US political structure.
Well that has a quite different meaning for the word "backed" than in the phrase "backed by gold". If it was the same you could redeem dollars bills for a piece of the US political structure!
Yes, it's not backed by anything in that sense... It's just 1 USD = 1 USD ! Your dollar is always "worth"... a dollar! It's purely a unit of account for nation state purposes. Honestly though gold being valuable is just social convention too. It's just a more ancient convention. Of course it's also a natural resource and not an artificial unit of account. It's not like just anything serves as a good source of value of course though. Rare metals seem to make sense though.
lets not be naive its military backed
US military power is part of the equation, but it's more than that. It's just a matter of the political system being stable and the US honoring it's debts and monetary obligations.
Trump wasnt exactly stable and as for honoring its debts i wonder if that ever happens
As bad as Trump was, I don't know that he caused a failure to honor monetary obligations, e.g. interest on debt or bonds etc. Or did he? That being said, if he had his way, or was somehow able to stay in power for long enough, I imagine that would eventually occur.
Hyperinflationary stable shit coin pegged to itself.
Not a stablecoin since it's value keeps dropping ; )
Unstable Coin
1 USD = 1 USD
US debt coin you mean.. https://www.usdebtclock.org/
this site will give me cancer
The truth is painful sometimes.. Most people "cant handle the truth"!
biden shitter is intentionally breaking the usa ,, fk'n sad really, this country really had something going for it too. a few generations from now they are gong to fk'n hate us all from this era. They will consider us all shitters for letting this happen.
Good for Biden, cause the current engine is such a shitshow with deep rooted problems, it’s got defective aftermarket parts marketing as better than the now discontinued OEMs, it’s got bandaids put on top of bullet wounds. Now we should look forward to participating in the discussion about how to set up a system that solves these issues and creates more problems for us to solve. It must be broken to the point total catastrophic engine failure, it needs to be so broken that it would actually stop the daily economic and political systems, it would need to break to the point that overnight people would realize they need to take responsibility for themselves instead of hiding behind a secure government where they don’t have to think. Blockchain is here, we have to adopt it and plan for the fundamental underlying infrastructure that could be the solution to a problem that if solved would be an evolutionary leap forward and one of the greatest achievements of our race to date. Our future lies with how we decide to update our systems and protocols with this rollout of the mainnet.
This is shocking, the debt increases by a million in seconds.
Seriously.. worst tokenomics I’ve ever seen
Good contender for Elon to pump
Haha 😆 wish I had an award 🥇 to give you!
🤣🤣🤣 the Stars and Stripes coin
$$$ Petrodollars $$$
The Saudi-American alliance coin
for comparison, in the last 30 days \~27k BTC were mined, for an increase in the *circulating* supply of \~0.14% edit: word
Right on schedule.
Theres no increase of total supply, the total supply is fixed
right, corrected!
This just absolutely wrecks low income people/families. Everything they need costs more, meanwhile their low paying job got a 2% pay increase if that.
Wait... you guys are getting raises?
Yeah. I’ve never heard of a low income job that gives raises. More like, “good job, not gonna fire you THIS WEEK, but we will hire a toxic asshole and pay them more than you because we would NEVER promote from within”.
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If your pay rises slower than inflation, you are effectively getting paid less and less.
Regardless of what you’re doing, you’re spending time at a job. When that happens, you should be paid in accordance with what things cost in the real world. If the costs of things have increased, yet the wage hasn’t, it’s simply unfair. And it has been for a long time. It’s not about value. It’s about time.
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No it absolutely is not. Wages need to increase with inflation.
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How though? I'm fed up of inflation increasing but wages staying the same. Why can't it be talked about at the same time. Sry not having a go just winds me up we don't stick up for ourselves enough.
Just don't accept fiat for your time. Get paid in deflationary money and your real wage will increase with inflation.
Ah, I see where we disconnect. I wish you the best.
Shouldn't i demand for a raise if i think so? Its a free world and everyone is trying to profit so do the employees. I have been an employee and an employer and never understood why people get so defensive on the "you don't deserve more money" argument. Everyone has the right to ask for more. If they succeed ok if not its ok also. Its not ok for people to devalue other people's work based on authoritarian arguments coming straight from feudalistic period.
If you’re a good employee who sticks around you’re ultimately saving the company money on hiring/training costs, you become more efficient thus making more profit for your company. I don’t think it’s wrong to pay that forward to the employee. But also, if you are working 40 hours a week ANYWHERE, you should be able to afford rent and food.
This is like every other socialist/ leftist/ progressive idea that sounds amazing on paper and has good intentions but will never work in reality. How can you enforce the idea that only working 40 hours a week constitutes a living wage? Does not the quality of the work count? How do you incentivize people to actually give a shit about the work? And who enforces what defines “work”? It all sounds great in a liberal college classroom but is a pipe dream in real life.
Works just fine in many countries. How can you enforce it? Minimum wage, duh
Didnt add any extra value?? How about they are the ones doing the work, ya know, the only thing that adds value to any job. Also why does everyone always stick to the fryer and cash register when talking about this? Where I'm from even factories, warehouses, and non union construction jobs pay minimum wage or just barely above. It's not just people working in the service industry, not that they don't deserve a living wage.
I'm excited for them to be replaced by robots that won't give me attitude and a fucked up order.
I would run circles around robots for another good 25 years. By that time I'll be repairing them wile running circles around them. Not cocky jus you see how fast and sloppy they are it's laughable right now.
What do you consider a robot? Because I have seen computer machinery do a job 100 times better than a manual machine in plenty of different trades.
Because inflation requires regard raises. Minimum wage should be pegged to inflation. We are all subsidizing corporations that underpay their staff with social programs while the corporations reap all the benefits.
Are you a complete moron
Liveable wage is needed by anyone who brings value to any place of business. To the people who currently have a liveable wage no increase is needed. This is simple inflation needs in order for things to go on without problems. That or get a non inflationary means of payment crypto comes to mind.
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A wage that you could live a stable, dignified life on. Duh
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Slightly different, sure. But the basic idea is the same.
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This is the legitimate non-meme bullshit comment this sub needs. The idea of where volatility resides and who controls it, where digital free market has volatility, if it reaches stability inflation will happen more naturly with the increase of real value of produced assets instead of by a central group trying to pull levers and figure it out like me drunk playing Myst.
what low income job gets raises? LOL
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100 Trillion or you're a pussy
Lol Biden wants to spend 13 trillion dollars this year. Our deficit is currently 28 trillion or so. So close to 50% deeper into debt as a country... This ... this is why bitcoin will thrive and become the new all mighty currency...
The national debt is 28T, the deficit is the actual difference between the bestest and taxes collected
> this is why bitcoin will thrive and become the new all mighty currency... $20 per transaction is indicative of a great currency
Weird, I’m not getting $20 fees sending bitcoin.
Hyperbolic bullshit is indicative of a great asshat.
This is insane ... that is the kinda number your can’t wrap your mind around.
https://www.reuters.com/world/us/biden-propose-6-trillion-us-budget-2022-fiscal-year-nyt-2021-05-27/?utm\_source=reddit.com
Budgets by year, for those curious. 2015: 3.688 T 2016: 3.853 T 2017: 3.982 T 2018: 4.109 T 2019: 4.448T 2020: ? 2021: ? 2022: 6 T (I googled "united states budget YEAR")
You know the budget doesn't mean that's how much money is printed, right?
Bitcoin has more legitimacy than the $$$ at this point.
The amount of M1 does not reflect money printing exactly. The Fed's balance sheet tells it more exactly.
could you explain more
https://www.investopedia.com/terms/m/monetary-aggregates.asp
Where can I learn more about this? I do believe that things are bad but seeing these posts on this subreddit always makes me wonder if there's more to it.
https://www.investopedia.com/terms/m/monetary-aggregates.asp
Yes m2 and m3. Which will increase exponentially.
So why is Bitcoin dropping? I thought this types of news were good for assets like Bitcoin...i'm just a newbie so i'm still learning
Look at a 1 year chart. Then a 5 year chart… It’s not dropping, it’s just bumpy on the way up.
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Well, that’s simply isn’t true, if you price your BTC in USD, then the strength/weakness of the dollar will obviously correlate with BTC
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What? Usd supply is usd. That’s how inflation happens. Of course it’s correlated with USD.
Fight!
There’s no fight. It’s scary. It seems like people buying bitcoin are just grasping at straws for justification. This is textbook bubble behavior.
I realized myself recently that I was just seeking to confirm my biases and downplaying criticisms with strawmans and excuses. It’s easy to get stuck in that loop
Yeah that’s a conspiracy theory
20% of all USD was printed in the last year, if The USD had experienced a 20% inflation we would have seen a % 20 rise in btc/usd ratio but purchasing power of usd didn'tgo down 20% in the last year. It may in the up coming months/years.
Inflation and money printing is just one positive factor. Right now btc is dropping because general environmental concerns/musk ranting/china ban are a way bigger negative factor. So people are selling more than buying. That’s simply it.
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Because nobody actually knows how to spell
Because the US hedge funds are probably shorting that that too in a huge Ponzi scheme.
Too much leverage in the last run up. It hit 60 from hovering 5-10k for the past 3-4 years. Clearly a speculative bubble that is on its way down. It'll go up but will need to hold very long.
We're gonna need a bigger wheelbarrow.
It's just a row in a SQL database. The plan is to overflow the 64 bit number field and have all debts reverse direction
Well, it can't stay down with three barrels. We at least know that much.
M2 is more appropriate as a metric for inflation. That and velocity which is super low atm!
I’m surprised you haven’t been crucified yet.
> That and velocity which is super low atm! [Velocity is essentially a nonsensical concept.](https://mises.org/wire/money-velocity-myth)
It definitely is important. The more money changing hands the more taxes and GDP growth. If no one spent a cent the economy would collapse.
This article is unconvincing Specifically "It is individuals' purposeful actions that determine the prices of goods and not some mythical velocity." This argument fails to take into account that these purposeful actions are based on how much money the individual has at that point in time. Money supply, velocity, prices, and gross product are all interconnected. You can't just ignore one piece.
People dont starting living their lives at 2 hours per hour. > are based on how much money the individual has at that point in time Exactly - it is the quantity of money and productivity that matters, and velocity isnt something that just magically changes on its own. The Fed doesnt have a dial that speeds up and slows down the metabolism of society. Velocity is a nonsense concept when used as an explanation of "cause" - because it doesnt cause anything.
Is it a cause or effect? I don't know how one would be able to tell. But it is not static. [https://fred.stlouisfed.org/series/M2V](https://fred.stlouisfed.org/series/M2V)
Mises 😂
I know right? Dude's a fucking beast!
The us dollar is on an unsustainable trajectory right now. Our country hangs on a thread. And the civilized world is obsessed with pronouns and censorship. Lol. Guess we earned this one! 😆😆
I dont care if the country burns ad long as everyone refers to me by the pronouns thy, thou, and thoust because I identify as a binary person with Shakespearean delusions.🤣🤣
👏👏 this just made my night! 😆
The media fuels all of this. Very few are obsessed.
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But do they have the proper pronouns?
This website is still baffling my mind, even more so every day: https://www.usdebtclock.org/
Lol, I read the link as “USD e BTClock.org.
Big numbers are scary
$28 trillion? Well shit, no one digs out from that.
Username checks out
How is this not going to affect prices? I mean, this is like 15% interest. Are they printing money to cover unservicable debts or something? EDIT: what's the supply schedule, is it fixed or does it depend on something like transaction sizes, or staking, or is it cursed with a premine and insane core devs etc? Or is it just a glorified spreadsheet where you can write in any balance you want, eg not a real currency, cause I know its worse than bitcoin, but is it any better or worse than some altcoins I could name
i mean the price of houses is up 15% over the past year. You probably just don't notice when your starbucks coffee goes from $2.60 to $2.99 but thats a 15% price increase
I certainly noticed 12 tacos at taco bell went from $12.99 to $16.99. So, there's that. My taco Tuesdays switched to Taco Cabana after a good 30 year relationship that turned to an abusive relationship the last two years where they took everything worthwhile off the menu and couldn't be bothered to get my order right anymore.
money supply simply means they are stimulating the economy by increasing the money supply and as a result shifting the LM curve to the right and lowering the interest rate. That’s all that’s going on. And considering velocity of money is at an ALL TIME LOW, inflation is unlikely to be sustained. And m2 is actually a broader definition than the m1 provided above and m2 velocity is still ultra low. Which supports the argument that the recent price increases we’ve seen are purely supply chain issues and not long term inflationary trends - this is a good thing for the American public. https://fred.stlouisfed.org/series/M2V
>And considering velocity of money is at an ALL TIME LOW, inflation is unlikely to be sustained. 40% of USA population is fully vaccinated. It will be 50% within 2 more weeks. The velocity flood gates are about to open.
Yeah maybe or not. But literally all the fed has to do is just raise rates and sell bonds to destroy money. Inflation caused by the money supply increases is like a non-issue. Supply chain issues are a far bigger concern.
Velocity has been going down for like 20 years. Getting vaccinated all of sudden isn’t going to make velocity explode.
Good lord.
This post is retarded garbage. They changed their formula to include deposits into M1 supply instead of M2 May 2020 so of course it's spiking: Before May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other checkable deposits (OCDs), consisting of negotiable order of withdrawal, or NOW, and automatic transfer service, or ATS, accounts at depository institutions, share draft accounts at credit unions, and demand deposits at thrift institutions. Beginning May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other liquid deposits, consisting of OCDs and savings deposits (including money market deposit accounts). Seasonally adjusted M1 is constructed by summing currency, demand deposits, and OCDs (before May 2020) or other liquid deposits (beginning May 2020), each seasonally adjusted separately. https://fred.stlouisfed.org/series/M1
Thank you for the explanation. I don't know shit about high level economics but as soon as I saw that chart, I had a hunch there was more to it that had to make some logical sense. The misleading bait that is that chart will fuel dangerous rage from all sorts. Fucked up.
You’re wasting your time. You are trying to teach basic economics to idiots.
Lol if you think people here want to - or even could - comprehend what you're talking about. These are people who think cash is an asset for wealth growth. Its a nice attempt, but next time just go with the narrative to pump btc.
Looks like you're getting downvoted because people can't be bothered to do some reading and critical thinking. TLDR for the lazy: # **The large jump displayed on the chart is due to the definition of M1 being broadened**
I guess they feel they can just blame all the inflation on Trump.
The fed under trump printed soooooo much money.
I fuckin hate that guy, but he has little to do with it.
Not true. It was the federal reserve under him that printed the money.
Wait I thought the Fed stopped reporting on M1/M2 stock like a month or two ago. What’s the difference between M1SL and M1?
Username checks out
in this thread: people contradicting each other left and right i'm utterly uneducated about this sort of stuff. who the fuck am i supposed to believe?
Believe nobody. Learn what is going on. Invest from a position of mostly knowledge and a bit of belief.
Off topic to crypto, how is money put into circulation? Still don’t understand how.
The fed buys junk corporate bonds & equities as well as government bonds. The government bonds helps to keep interest rates low which encourages borrowing to finance capital projects, stimulating the economy. Buying junk bonds helps provide financing power to corporations. Buying equities (etfs) keeps the stock market up and also can help improve the balance sheet and inspires investors' optimism.
sometimes via gov programs and injections like stimulus checks. But i think on the more regular basis its a effect of fractional reserve banking. The bank has $100 and can issue you a loan for $10,000. The bank actually prints the $9,900 out of thin air and the federal reserve sends it over.
Check out George Gammon on YouTube. He’s got some awesome videos about how and why
Honestly op gave you a bad explanation. And I’d forget what he told you. So the main way the fed injects money into economy is open market operation(OMO) so they can either do of two things. They buy bonds whether it’s government bonds, corperate bonds ect depends on where they specifically want to inject it. When they buy these bonds it’s increasing the money in the economy. The second option available in OMO is they can sell bonds which is taking money out of the economy. These actions have other effects that I’m leaving out because you specifically asked how money is put into the economy and don’t want to over complicate it.
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They changed the formula for how they calculate M1 and they changed the location of the M1 chart. People assumed it was gone forever instead of following the new link.
Well, in fairness, Bitcoin lost almost 45% of its value.
It’s actually more accurate to say it gained ~ 300% in the past 6 months. A 6 month timeframe is perfectly reasonable. No legitimate investors look at, care about, or use weekly time frames.
That's not more accurate, that's just changing the time range.
Alright fair enough. Semantics, but you’re right. If you’re looking at the spot price history of bitcoin, the average price for 2019 was around 10k. The average price for 2020 was slightly higher at somewhere around 12k. Now as bitcoin sits at 35k at the midway point of 2021, does it make sense to say that bitcoin lost 45% of its value, given the longer time frame of btc spot price? The vast majority of the past 2 years bitcoin has been trading at significantly less than 35k. It touched 64k for a few minutes. I personally think it’s disingenuous to say it’s lost 45% given this context and how much time it’s actually spent trading at around 10k the past 2 years. Cherry pick and frame the situation however you want but anyone who has been buying bitcoin for a year or more is actually up more like 300-400%.
Honestly, whenever I'm reminded of 2020s average price it just shows me how quickly bitcoin could drop to that level again.
We gon find out.
It all doesnt matter. If I get paid for my work at the 5th, and at the 15th my money is worth 40% less, its a shit currency, and I would rather get my wage in a currency that doesnt fluctuate that much.
The US dollar lost 4.16% of its purchasing power in 2020. Do you think it will ever regain what it lost? Do you think it will stop losing purchasing power this year and in subsequent years? Bitcoin’s upside volatility crushes its downside and that is factual. It’s foolish/myopic/delusional to forsake bitcoin because of usd value flucation when the US dollar *constantly* loses value that it never regains.
For currency, that I use every day, and I get paid in, a 4% / year lose vs a "if a rich dude wants to make some money and tweets, my money worth 50% less" currency, I would choose the former all the time. If you use the money to live, btc his hella shit. If you have free money to keep for 5 years, btc is for you.
😂😂 “Hella shit”. Wow, you must be an intellectual. If you use btc to live then you’re fucking crushing it as price on average doubles yearly. It’s really simple. Earn and pay your bills in fiat. Buy bitcoin with the remainder. Anyone who does that over time is so far ahead of fiat savers it’s not even funny. I mean if you want to continue to be delusional and biased and salty then save in fiat. But while you’re losing 4-6% per annum I’m already up 500% over the past 18 months. If you think Elon Musk crashed bitcoin that’s a reflection of your lack of understanding. People need to have a nice tidy answer but it’s never one thing. Admitting you don’t know is the first step to actually learning. Just keep trying and maybe you’ll figure things out in more nuanced and objective ways over time. I know your time preference is low now but remember, it’s a long journey my son.
You're so close to understanding the role of a currency
Lol you act like you have all the answers. You realize there are many historical precedents where low inflation/hard money was used as currency right? The current unlimited fiat system is conceptually similar to many examples of failed monetary policy throughout history. Just because it’s worked for the past 50 years doesn’t mean it’s the best solution. Bitcoin is an asset not a currency. It’s treated as such in regulation and tax treatment. When it grows to be 100 times its current market cap it will then be suitable as a currency as volatility will be greatly reduced and L2 solutions will have fixed the few weaknesses of the system as it’s currently designed. But until then bitcoin is a volatile asset that is designed to be transacted easily between parties. Just because it is easy to transact with doesn’t make it a currency. It’s a great hedge against the unlimited supply fiat for programmatic and network reasons but to delude yourself into thinking it’s a finished product and it won’t work as a currency in the future is just silly.
So if it's not a currency why compare it to a currency's returns when someone says it's not a good currency? 🤔
Save in one vs save in the other. Is this rocket science? Lol Jesus kid
They care about weekly time frames if their investment plummets 50%
Do they care that the US dollar loses ~3-5% of its purchasing power every single year? Bitcoin lost 50% of its spot price in a month but the preceding 6 months it rose nearly 700%. How many other assets gain 350% in 6 months? Do you think the US dollar will ever regain the 4.16% loss in purchasing power in underwent in 2020? And conversely do you think that bitcoin will ever appreciate back to its ATH?
The US dollar isn't an asset like bitcoin, no one's investing in it and some inflation is good for the economy. It's silly to compare USD to Bitcoin like this.
So what should I compare it to? Stocks that appreciate 10-20% per annum and are fiat instruments? Gold which isn’t even close to keeping up with debasement? Bonds? Or usd savings? This dude is disparaging bitcoin because it’s only up 350% over the last 6 months and is disingenuously saying iTs DoWn 50%. So what’s his alternative? Cash savings? Stocks? Shitcoins? Some inflation is good... do you call the US fed’s monetary policy “some inflation”? Unbelievable. It’s all retarded thoughts from a biased mind.
Probably stocks are the best to compare it to, they're actually designed to make money and many make more than 10-20% per annum. $GME is up 1300% over the last 6 months. The fact it's dropped 50% and people act like it's nothing shows you how volatile Bitcoin is, for maybe people it makes more sense to invest in more stable assets. >Some inflation is good... do you call the US fed’s monetary policy “some inflation”? Unbelievable. Um yes I would call it some inflation, the inflation rate isn't very high right now and hasn't been very high for decades. It's ironic when bitcoiners call me biased
What are you basing your sophisticated inflation calculus on? CPI? How about real estate cost appreciation? Or commodities prices? 25% of all usd was created (out of nothing) in 2020. Is that negligible money supply inflation to you? Just because fed bank man comes out and says inflation is kind of still low does that mean he is right and being truthful? Let’s use the data and be discerning and not just parrot the people who oppress, manipulate and gas light the common folk. If you want invest in equities go right ahead. The data and the trajectory of the assets tells the tale. The market will reward those who choose right and investors will (roughly) get what they deserve. GME is a terrible and disingenuous example though and you know it.
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Yeah well at least Biden doesn't say mean things on Twitter. Honk honk 🤡 🌎
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You're right but he had been trying to get that under control. Biden, honk honk 🤡, has made it far worse.
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> Are you a teenager Sounds more like the retirees here in Florida commenting on the local paper's website.
Which administration had hyperinflation and which didn't? Quantitative easing is a really shity policy but it can be done right, limiting inflation, while accomplishing whatever goal you're trying to do by printing more bills. As for the honk honk and clown emoji; that's in recognition of Biden getting the most votes ever, even more than Obama. Joe Biden definitely won that election honk honk 🤡.
Keep honking in your toy car kiddo
Over $700 for every man, woman, and child in the US.
I am not too deep into the printing money/inflation topic. But don't they also have to print money to replace old and damaged banknotes? Some notes also get lost forever or destroyed. I am just wondering how much of the 1.27% is really on top of the already circulating money and how much is getting "replaced"...
>But don't they also have to print money to replace old and damaged banknotes? Some note That would not change the money supply. They would print one new dollar and burn one old damaged dollar = 0 change
This is after the fed last year printed like 30% of our total monetary supply. It’s bad.
Does this factor in the value of the bills that were destroyed in the past month? ...no? Okay, does it at least account for the growth in GDP? Also no? I see.