Jack Dorsey says ‘hyperinflation’ will happen soon

Discussion in 'Economics' started by ipatent, Oct 24, 2021.

  1. ipatent

    ipatent

    In general I agree with you, but Dorsey has enough money to be getting good advice.
     
    #31     Oct 26, 2021
    yc47ib likes this.
  2. piezoe

    piezoe

    You may be hedged and not realize it. Do you own equities? Broad stock market exposure is better than a perfect inflation hedge! (The perfect hedge provides no gain and no loss) Overall the S&P has kept up with or exceeded inflation. [Past results my not reflect future results]

    [​IMG]

    In 1979 and 1980 we had double digit inflation ~12.5%
    In 1979 the S&P 500 was up 12.3%; in 1980 25.77%

    following table shows average annual results for each decade of S&P:
    first % is inflation second % is real total return. There are only two unusal decades where total real return lagged inflation. Over all since 1950 the market has acted as a very good inflation protection with a real overall return of 7% against mean inflation of 3.8%. Patience is a virtue!
    Total Return
    1950's 2.2 % 16.7 %
    1960's 2.5 % 5.2 %
    1970's 7.4 % -1.4 %
    1980's 5.1 % 11.6 %
    1990's 2.9 % 14.7 %
    2000's 2.5 % -3.4 %
    1950-2009 3.8 % 7.0 %
     
    #32     Oct 26, 2021
    Bugsy likes this.
  3. SunTrader

    SunTrader

    $100 invested back in 1900 would have turned into $1.2 million approx - adjusted for inflation $315k approx

    To say that inflation takes a bite out of things is an understatement.
     
    #33     Oct 27, 2021
    cobco likes this.
  4. 322170

    322170

    I think Silver has a better opportunity to run v/s Gold - It's cheaper in price which allows more people to buy into it and it's been severely depressed for years. I wouldn't be surprised to see it double by next year especially with the way inflation is heating up and with all the pending bubbles equities, real-estate, bitcoin, classic cars, etc...etc... I believe Silver is a good inflation hedge. Just my 2cents......
     
    #34     Oct 31, 2021
  5. themickey

    themickey

    When gold bullish or bearish, silver runs about twice as hard in either direction, that's one way to tell precious metal's sentiment, is how far silver is reacting to gold. so in effect silver is twice as volatile.
     
    #35     Oct 31, 2021
    cobco likes this.
  6. ipatent

    ipatent

  7. •from your dear CNBC, "Wholesale prices rose 8.6% year over year in October, tied for highest ever"
    https://www.cnbc.com/2021/11/09/who...er-year-in-october-tied-for-highest-ever.html

    •from PBS public television, "In the late 1970s, in America, prices were rising fast. In other words, inflation was running rampant, usually thought to be the result of the oil crisis of that era, government overspending, and the self-fulfilling prophecy of higher prices leading to higher wages leading to higher prices. The Fed was resolved to stop inflation. So, Chairman Paul Volcker (who is pictured above) kept raising rates in 1980 and ’81, eventually bringing both the economy and inflation to a standstill."

    •does it sound any different? this pop is going to force the FED to take away the punch bowl sooner and more aggressive.


    SPX-in-High-Inflation-Environment.png
    [​IMG]
     
    #37     Nov 10, 2021
  8. #38     Nov 10, 2021
  9. ipatent

    ipatent

    #39     Nov 11, 2021
  10. Sig

    Sig

    Wait a minute, I thought we were all going to be beyond the tyranny of "fiat" currency and using crypto in no time. And BTC is deflating rapidly, heck, enough BTC to buy you a loaf of bread last year will buy you 4 loaves today. Except for that time in the spring when enough BTC to buy you a loaf of bread one week would only buy you 1/2 a loaf a week later. But anyway, no need to fear inflation, just switch to crypto. Just make sure you're not in any business where you buy inventory to make something you sell later, that probably won't work out for any of those suckers.
     
    #40     Nov 11, 2021
    piezoe likes this.