Biden's best speech -- new

[Tsing Tao]

No, not necessarily but sometimes it does pay to hold cash. My point is that looking at purchasing power and inflation in relation to new money doesn’t tell the whole story. Not every dollar is moving through the actual economy.

Also, we are seeing lots of goods and services get a lot cheaper through automation or specialization. There are a lot of other market forces that need to be considered beyond “brrrrrrrrr.”

Actually, we're in a period where holding cash is actually a bad thing. I'm not saying there aren't a few reasons to do so, but the vast motivation is to not hold cash.

As for goods and services getting cheaper through automation, you're a big advocate of hedonics, aren't you.

 

[Tsing Tao]

https://twitter.com/x/status/1351494846054346753

 

[UsualName]

Actually, we're in a period where holding cash is actually a bad thing. I'm not saying there aren't a few reasons to do so, but the vast motivation is to not hold cash.

As for goods and services getting cheaper through automation, you're a big advocate of hedonics, aren't you.

I don’t know what hedonics is. My point is when we look at periods of high inflation we can usually find a supply/demand issue in those eras and sometimes the market overcorrects thinking there’s a money supply problem. For example, when we look at the inflation problem of the 70s, despite all of the correcting interest rates to reduce the money supply what actually solved the problem was relief from a restricted energy supply. Or at least that is my take.

 

[Tsing Tao]

I don’t know what hedonics is. My point is when we look at periods of high inflation we can usually find a supply/demand issue in those eras and sometimes the market overcorrects thinking there’s a money supply problem. For example, when we look at the inflation problem of the 70s, despite all of the correcting interest rates to reduce the money supply what actually solved the problem was relief from a restricted energy supply. Or at least that is my take.

I appreciate your take, but monetary policy in the 70s is about as close to today in terms of comparison as New York or Seattle is to Jupiter.