– an excessively fast rise in the price of goods and services. The U.S. dollar, the de facto global reserve currency, has yet to suffer through this type of extreme devaluation.
In QE, the Fed snaps up Treasurys and mortgage-backed securities from financial institutions with no pre-defined holding period. When the Fed purchases bonds from a bank, the latter's cash reserves at the central bank rise, providing it with a liquidity cushion and greater incentive to lend. Increased lending then encourages more spending and investment, putting upward pressure on prices either in the real economy or asset markets.
"Conventional vanilla banking is about the mismatch between deposits and assets. In SVB's case, they had deposit redemptions of $42bn which is just over 20% of the bank assets when Silicon Valley deserted them in one day. That caused the failure, not the investment in the assets. Since the pandemic corporate loan growth has been mediocre away from the huge increase under the PPP loan program. Hence most banks invested the bulk of their liquidity in U.S.
The dollar index, which gauges the greenback’s value against major currencies, surged by 11% in the second half of 2008 even as Lehman Brothers collapsed, causing a worldwide contagion. The index stabilized in the range of 75-90 in the subsequent years even though the Fed did multiple rounds of QE. The greenback slipped 11% in ten months after the Fed reopened liquidity floodgates in March 2020, a notable devaluation but far from the outright hyperinflationary crash.
balajis godbole17 I'm sure if this happens, that's why I started to buy Bitcoin in installments according to my ability. There was a lot going on in the world before the belief in the ability of people who were initially considered crazy, ended up admitting it a lot. like inventors/scientists.
balajis godbole17 Coindesk is a bullshit
balajis godbole17
balajis godbole17 Doesn't the Pavlovian conditioning argument self-defeat? If everyone is conditioned this way, then they will behave this way in their economic transactions.
balajis godbole17 BTFP is effectively QE. For one thing, the assets exchanged for dollars by the banks with the fed was not done at market price. Another thing is the one year term can be infinitely renewed at every expiration.
balajis godbole17 props to Coindesk
balajis godbole17 Ja yes balajis is the guy who cherry picks some shots of homeless people in Detroit and postcard pictures of Dubai and Shanghai as indicators that the West is going down. He has some semi-hidden deeply rooted animosity towards US. He can’t wait for it to happen. Wishful thinking
balajis godbole17 The late John McAffee approved.
balajis godbole17 Inflation and hyperinflation also happen by imagination turned reality. How ? Because Currency value is also Confidence And at this time it's very LOW NEAR 0
balajis godbole17 During hyperinflation, 30k usd bitcoin will be too cheap to buy....1million dollar worth of btc is like equal to current 20k usd btc without hyperinflation
balajis godbole17 Yeah, no shit.
balajis godbole17 lol
balajis godbole17 “Historical precedents” all the way back to 2008! 🤡
balajis godbole17 He bet 1 mill. He didn't predict 1$ Bitcoin
balajis godbole17 😂😂😂
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balajis godbole17 Yoh mmua 10m$
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