Jack Dorsey says ‘hyperinflation’ will happen soon

Tsing Tao said:
Dorsey isn't any different. Why we think that people have an expertise on something way outside of their area simply because they are famous or have done well in a totally different area, is beyond me. But we do it all the time.

Somehow actors can provide great advice in politics (they can't), or social media tech folks know the economy (they don't).

Leveraging fame doesn't leverage knowledge or wisdom.
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In general I agree with you, but Dorsey has enough money to be getting good advice.
 
altagracialacey said:
Some say hyperinflation will occur soon while some say it is less likely to happen. Whatever be the case, one should consider using inflation hedging strategies to reduce the impact of inflation.
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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]

Fig1.jpg


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 %
 
$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.
 
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......
 
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.
 
•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
SPX-in-High-Inflation-Environment.png
 
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.
 
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