PortaJohn

DGOyCMXS.jpeg
 
  • Like
Reactions: SilentStalkr
Imagine that. 30% more currency in circulation than a year ago. How could there be inflation? 😂

Those that took Econ 101 will remember that the velocity of money is also a factor. If the Fed adds 30% to the currency "in circulation" (a bit of an ambiguous term) but velocity decreases by more than 30% because, oh, people are forced to stay home and stream Netflix shows, then one will actually experience deflation.

The real fun happens later when all that pent-up demand pops loose, or when supplies dwindle for certain items and effectively a market turns into a bidding war, or when the concept of rational market behavior is proven incorrect and dislocations occur. We're probably experiencing all of those things currently, and it's probably going to get worse as emotional people continue to react to situations they do not want to deal with but cannot ignore.