You’ve misinterpreted what I’ve said. I think we would see deflation if we’ve got more tight monetary policy (gold standard, free banking or more hawkish FED, whatever). But I doubt QE is making a big inflationary pressure - it’s providing liquidity not increasing supply of money. In other words, it takes some less liquid “money-like” assets and replaces it with more liquid assets (money). This doesn’t change the supply of, broadly speaking, money (money-like assets), but alters its composition.
Other important factor to take into account is that low interest rates (while having low inflation in the same time) is not only result of central bank policies, but also structural changes in the economy (mostly due to decreasing productivity by ageing societies on the demand side, and lots of savings/capital on the supply side). The best case of this is Japan - ultra-inflationary policy of BoJ, negative interest rates and hardly any inflation. It doesn’t matter how much money you’ll print, if there’s nobody to spend it.
PS. I agree that these government measures are short-term necessary, but they’ll be long-term destructive. Especially that they’re impossible to remove even during a bull market and economic expansion (as last 12 years has thought us).
You know, it’s like “let’s take away those pesky zeroes now to simplify, I will add them back later”
ahahh. To be fair I noticed like 1 seconds after posting.
I suppose you already know what happening, but just in case, it’s not far from the truth that people will give you money for buying oil (if you can store it between May and June)
(Future traders want to roll their May contracts to June, but there’s no storage left, so yes technically this could go negative)
Because we never had a global lockdown with -95% in air travel. No one needs oil anymore and the producers have full storages. Storing it costs way more than 14$/barrel it seems lol.
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