Show HN: M1 Chart – The stock market adjusted for the US-dollar money supply

Re:Show HN: M1 Chart – The stock market adjusted for the US-... by tylerhou on Saturday February 13, 2021 @09:53PM (#26129230)

You shouldn’t care. This chart is making up claims of “obvious” inflation (despite no evidence) to push BTC and other cryptos. (That’s why the dropdown has crypto coins.)

Also, the person doesn’t really understand monetary policy or macroeconomics — inflation is measured by changes in the price of a currency. M1 only measures supply. The other half of the price equation (that is missing from this chart) is the demand of the currency.

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Re:Show HN: M1 Chart – The stock market adjusted for the US-... by lumost on Saturday February 13, 2021 @11:03PM (#26129563)

Measuring the intrinsic demand for a currency is an exceptionally difficult problem and prone to cognitive bias in terms of which factors are weighted and how it's calculated.

Measuring the money supply is a trivial matter - if we observe a radical change in the money supply which correlates to asset price increases it's reasonable to question if our understanding of the economy is correct.

This may be in actionable information even if you buy the argument however. Holding assets while they inflate is the best move and at 0% interest rates there is no alternative to holding assets.

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