WHERE THE FUCK IS MY HYPERINFLATION???

low oil prices, strong dollar, poor economy because of obama, banks with lots of regulation, unwilling to lend because rates are so low....

Inflation will come by end of year.

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Did you hear about the part where inflation/deflation is a tug of war? They printed all that money simply to stave off outright 1930s-style deflation. The velocity of money has been cratering.

When/if the labor force participation rate ever begins to rise and people begin to spend & lend again, grab your gold...

>>1811564
Can you explain velocity of money senpai

Economics student shall now give an explanation.

What you're calling "printing money" is actually called quantitative easing (QE).

This process involves the digital printing of money by the central banks around the world and is used to buy up mainly low risk financial assets such as government bonds.

Seen as the main holders of those bonds were banks, a lot of that money went to them and was used to re-build their balance sheets as they're legally now legally required to have higher amounts of liquid assets to back up any investment they'd be making.

The rest of that QE money went directly into the stock market or other high risk assets.

Hyper inflation wouldn't have happened anyway seen as the world economies just din't have enough consumer spending (demand) in order to drive prices up anyway.

However, if you live in America then you can expect some inflation if Trump cancels NAFTA and imposes tariffs on China.

>>1811481
>WHERE THE FUCK IS MY HYPERINFLATION
look at house prices.

They never went down, the fed propped them up.

>>1811669
>Economics student

no wonder you're completely wrong on every point

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>>1811686
Where's your hyperinflation then?

>implying anyone understands how our money supply actually works, including those who supposedly control it

>>1811669
Economics masters degree here and you're dumb as fuck.

A lot of people are shitposting and not really giving good reasons. So I will.

Hyperinflation happens pretty fast. The inflation we have now is completely controlled. American dollars are such a reserve currency I'm confident these dollars could even be pumped to avg americans and inflation would be low. The US reserve currency is VERY strong. It is backed by war and sanctions. Imagine if you didn't want to use US shit and wanted to fuck with them (russia) brb sanctions. See ruble/usd prices after ukraine incident. See libya,iraq when trying to trade on euro. The US dollar is backed by war and sanctions.

>>1811690
not him but
>The rest of that QE money went directly into the stock market or other high risk assets.

Hyper inflation wouldn't have happened anyway seen as the world economies just din't have enough consumer spending (demand) in order to drive prices up anyway
is just wrong. With fractional reserve banking in the current system you need lending to happen to create inflation to any significant degree, which just isn't happening at a rapid pace. And QE doesnt ''''increase'''' the value of securities like stock market just as it wouldn't have increased the value of apples if Fed bought those with QE dollars.

The point of QE is to introduce more liquidity into the system. thats why the money didnt go directly into the economy, but was bought at the market prices-aka low risk securities.

>>1811602

Think its a Keynes equation but still follows:

MV = PY. Here M is money supply, V is velocity, overall price level (P) with real GDP (Y)

So if GDP is up and prices are the same, other side of the equation must go up. since it is the money supply sky rocketing, either velocity is staying the same or falling depending on the other numbers. When velocity falls, it means people are buying less. When people buy less, they print more money and spend it hoping others will receive more money and spend it to boost velocity.

You can think of it like this: How many times is $1 being spent and re-spent on goods and services. 100 million people have $1000 and each work in their own business. If they keep the $1000 and never spend it, there is no velocity. If Every one spends all$1000 and immediately spends anything they make at their business every time the get new money, velocity is high.

>>1811481
>QE
Um, QE ended in 2014.

>>1813938

also you may be wondering why people don't just spend money even when they are rich, that gets into behavioral economics basing how different people value their money. Some peopl think having $1000 is alot and will spend it. Others may think that messily $50k isn't enough and need $100k before they buy frivolously.

>>1811686
Then whats the correct answer senpai

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>>1811481
stock market.
bond market.
real estate.
there it is

>>1814005
Ding ding ding. We have a winner.

I think that consumer hyperinflation will happen on the back of a major unexpected event. War, large natural disaster etc

>>1813767

Great argument m8

>>1813817
>With fractional reserve banking in the current system you need lending to happen to create inflation to any significant degree, which just isn't happening at a rapid pace.

That's just cause and effect.

Low levels of lending is caused by low consumer spending. If people aren't interested in basically free money you know its a demand side problem.

>>1813938
this is Quantity theory of money equation, it comes from Coperincus of all people and was later improved by Irving Fischer . Keynes rejected this equation btw.