Re:BadEconomics: Putting $400M of Bitcoin on your company ba...
by Supermancho on Monday January 04, 2021 @07:36PM
(#25640400)
> Food prices definitely haven't doubled in the last 10 years.
Not all foods. Again, food has a number of factors that's countering the inflationary forces.
> The price of assets can vary quite wildly based on the interest rates
That's irrelevant to the spike in value that has occurred while the rate has sat at 0. The inflation of the prices of stocks and property assets are evident and the realization of no other way to invest wealth - bond returns are less than 1% now, which is why they are basically useless.
Re:BadEconomics: Putting $400M of Bitcoin on your company ba...
by JamesBarney on Monday January 04, 2021 @10:00PM
(#25641539)
The short term rate has sat at 0, but the long term rate has always been above 0.
The stock market and real estate aren't goods and services, they are assets. The price of assets can vary quite wildly based on the interest rates (Looking at a net present value calculation explains why). But these fluctuations are unrelated to fluctuations in the prices of goods and services.(i.e. inflation)
Food prices definitely haven't doubled in the last 10 years.
https://www.ers.usda.gov/data-products/food-price-outlook/fo...
People complaining about inflation are usually asking us to trade a very real current harm-underemployment for a hypothetical harm that hasn't materialized in the last 13 years despite repeated warnings-inflation. This seems like a bad trade especially since mainstream macro theory says the risks of rampant surprise inflation are low.