No,your asking questions about something you dont know about,your ahead of the game.
I dont know how to explain something so complex in a few words.
The us government took on about 5 trillion dollars worth of morgage debt.
What people seem to miss is this is a paper asset on some other persons balance sheet in the form of a treasury.
Instead of letting this paper asset decline in value the gov descided to back it with the amercan tax payer dollars.
I reserve the right to reexplain after a good nights sleep.
This is liquidity injection.
With the situation the way it is i dont blame them.
Well big,deal whats the difference you might say.
The usdx is the worlds reserve currency.
Everything is priced in us dollars.
These two factors have created a never before seen situation.
The us had in its power to export inflation and stop recession because of dollar hedgonomy.
All it accomplished was to compress the springs of economic reality to crazy levels.
This has been happening for generations,not years.
Which brings us to inflation,lots of dollars over lots of years at an exponential rate.
And those dollars flow to tangibles,espesciaaly ones that havent moved much.It finds the path of least resistance.
In a nut shell.
Where from here?
Extrapolation from these realities is the fun part,which is what ive been thinking about for a long time.
I dont know how to explain something so complex in a few words.
The us government took on about 5 trillion dollars worth of morgage debt.
What people seem to miss is this is a paper asset on some other persons balance sheet in the form of a treasury.
Instead of letting this paper asset decline in value the gov descided to back it with the amercan tax payer dollars.
I reserve the right to reexplain after a good nights sleep.
This is liquidity injection.
With the situation the way it is i dont blame them.
Well big,deal whats the difference you might say.
The usdx is the worlds reserve currency.
Everything is priced in us dollars.
These two factors have created a never before seen situation.
The us had in its power to export inflation and stop recession because of dollar hedgonomy.
All it accomplished was to compress the springs of economic reality to crazy levels.
This has been happening for generations,not years.
Which brings us to inflation,lots of dollars over lots of years at an exponential rate.
And those dollars flow to tangibles,espesciaaly ones that havent moved much.It finds the path of least resistance.
In a nut shell.
Where from here?
Extrapolation from these realities is the fun part,which is what ive been thinking about for a long time.
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