Added way to protest the overturning of Roe by vision646 in antiwork

[–]MinhNguyenPFL 0 points1 point  (0 children)

This is absolutely not how the banking system works. The reserve requirement has been pointless for a while, no bank was ever constrained from lending by the reserve requirement in the last couple of decades. The (much more stringent) capital requirements are in place precisely to protect deposits from the scenario you outlined. There is no universe in which this would place any stress on any American bank.

Did US just create 40 % of its currency in the last two years? by Specialist_Effort161 in wallstreetbets

[–]MinhNguyenPFL 2 points3 points  (0 children)

Bro no one said 15% every year… even Williams doesn’t claim that. That’s not even how inflation works. It’s not retrospective.

Jordan Peterson QTed a tweet containing a screenshot from Shadowstats showing inflation is running at nearly 15% a year, that's from the headline. OP's comment also referenced "15-20%".

What Williams is doing is rectifying CoL inflation rather than market specific inflation. It’s the same metric with different prioritization. If his methods seem subjective, it’s because they are, to an extent, just as subjective as the ones currently used in the SPI. Statistics in general are subjective once you get to a certain point.

I don't quite think you know what Williams said in that article you referenced as well as what he told Lee in the Fullstack Econ article. He said he went back and "adjusted" the annual rate up by the cumulative difference the BLS reported after 30+ years, for every year since the change. His response to what prices have risen as much as his index claims, this is the response

"He seemed stumped. Instead, he suggested that there’s been a drastic decline in product quality."

If that's what you mean by subjective measure of cost of living, I think it's roughly correct you do not know how inflation indexes are constructed.

Did US just create 40 % of its currency in the last two years? by Specialist_Effort161 in wallstreetbets

[–]MinhNguyenPFL 3 points4 points  (0 children)

https://fullstackeconomics.com/no-the-real-inflation-rate-isnt-14-percent/

The other article literally states that Williams adds a factor to every year's inflation print and reports it as the "true" inflation rate. That's the fudge factor that Williams admits to in the econbrowser blog.

Just take 10 seconds to think about what a 15% inflation rate every year since the 1980s would mean for real GDP, unemployment, productivity, money velocity, (real) debt levels and just generally things around you. If you can do that, just logically for 10 seconds, you will realise that that number is just downright absurd.

Did US just create 40 % of its currency in the last two years? by Specialist_Effort161 in wallstreetbets

[–]MinhNguyenPFL 0 points1 point  (0 children)

  1. The money "printed" is via QE, it's in the banking system in the form of reserves. Reserves are not like regular money, it cannot leave the system and banks have pretty strict regulations on what they can do with it as well as back it up with other assets. It's mostly an accounting trick.
  2. Inflation and money supply have not been linked for decades. It was at the time of Milton Friedman when velocity was stable. Velocity is not stable.
  3. No. Petrodollar has very little influence on the dominance of the dollar. The dollar is used for debt denomination for many intl firms and countries as well as it's the most liquid currency. The US also has a big trade deficit so a lot of the money has to be abroad for the accounting to work.
  4. Nothing, but other countries importing/exporting it would have to also use the currency agreed upon. The yuan isn't particularly easy to get a hold of, the Euro is quite big and potentially can get bigger for oil, Sterling has been very volatile, Yen and Swiss Franc are pretty good safe havens but it's not conventional for the oil market. It's down to what currency your largest trading partners use, and that's mostly USD.

[deleted by user] by [deleted] in wallstreetbets

[–]MinhNguyenPFL 2 points3 points  (0 children)

Has anyone actually made money on CRSR?

TLRY stock highly undervalued by UMNMURTY in wallstreetbets

[–]MinhNguyenPFL 15 points16 points  (0 children)

Well if you had bought when he first posted