the Fed is telling the market it wants higher oil and commodity prices to achieve this longer-term average of 2% inflation"
Poster Comment:
Commodity put named after the Greenspan put. Higher asset prices eventually leads to Hyperinflation.
| Source: | https://www.zerohedge.com/markets/dont-fight-feds-commodity-put |
| Published: | May 9, 2021 |
| Author: | Tyler Durden |
| Post Date: | 2021-05-09 09:11:16 by Horse |
| Views: | 92 |
the Fed is telling the market it wants higher oil and commodity prices to achieve this longer-term average of 2% inflation"
Poster Comment:
Commodity put named after the Greenspan put. Higher asset prices eventually leads to Hyperinflation.
#1: TommyTheMadArtist To: Horse (#0)
TommyTheMadArtist posted on 2021-05-09 10:13:36 Reply Private Reply
#2: BTP Holdings To: Horse (#0)
What you are saying is interesting. But overall prices have a high impact on inflation.
Inflation was so bad in Weimar Germany that you needed a wheelbarrow of German Marks to buy a loaf of bread.
But the hyperinflation in Weimar Germany was caused by the harsh terms of war reparations in the Versailles Treaty. Those terms caused the supply of hard money to dwindle. And since the German Mark was backed by gold, the shrinking supplies of gold caused the value of the German Mark to plummet.
Here in the U.S. the FED running the printing press overtime has the exact same effect.
Plus the FED has been buying up the short term Notes sold into secondary markets by China and Brazil in an attempt to keep inflation under control here.
I doubt that plan is working very well since the cost of fresh beef is sky high. :-/
BTP Holdings posted on 2021-05-09 17:19:56 Reply Private Reply
#3: Horse To: BTP Holdings (#2)
Horse posted on 2021-05-09 19:41:07 Reply Private Reply