inflations
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U.S. inflation has cooled down to 2.5%, surprising analysts by falling below the anticipated levels. This shift signals a potential turning point in the economy, with inflationary pressures easing faster than expected.
This development is likely to spark positive sentiment across the markets. Investors are preparing for bullish moves as the news ripples through various sectors. Keep a close watch, as market reactions could lead to significant opportunities ahead. Stay ready for the upcoming volatility!
#inflations #CPI_BTC_Watch #LowestCPI2021 #CryptoMarketMoves #BullBanter
U.S. inflation has cooled down to 2.5%, surprising analysts by falling below the anticipated levels. This shift signals a potential turning point in the economy, with inflationary pressures easing faster than expected.
This development is likely to spark positive sentiment across the markets. Investors are preparing for bullish moves as the news ripples through various sectors. Keep a close watch, as market reactions could lead to significant opportunities ahead. Stay ready for the upcoming volatility!
#inflations #CPI_BTC_Watch #LowestCPI2021 #CryptoMarketMoves #BullBanter
The US đșđžđșđžđșđž inflation rate has taken a surprising turn, falling to 2.5% in August 2024, which is lower than expected.
This marks the fifth consecutive month of decline, with the rate being the lowest since February 2021. The decrease is attributed to a drop in energy costs, including gasoline, fuel oil and natural gas prices. Additionally, inflation for food and transportation has also eased, contributing to the overall decline in the inflation rate.
This news is a welcome relief for consumers and investors alike, as it indicates a slowdown in price increases and a potential stabilization of the economy.
"Stay informed, Stay Safe"
#usdoller #inflations #InflationNews #DOGSONBINANCE
This marks the fifth consecutive month of decline, with the rate being the lowest since February 2021. The decrease is attributed to a drop in energy costs, including gasoline, fuel oil and natural gas prices. Additionally, inflation for food and transportation has also eased, contributing to the overall decline in the inflation rate.
This news is a welcome relief for consumers and investors alike, as it indicates a slowdown in price increases and a potential stabilization of the economy.
"Stay informed, Stay Safe"
#usdoller #inflations #InflationNews #DOGSONBINANCE
WORST CRYPTO đ© Potential Pitfalls: Examining Traditional vs. Digital Currency đš
The image cleverly challenges our perceptions by listing attributes that might be seen as red flags in a digital asset and revealing that they actually describe the US dollar:
1. Infinite Supply: Unlike cryptocurrencies like Bitcoin, which have a capped supply, the US dollar can be printed without limit, potentially leading to inflation.
2. Allocation of Transaction Fees: The notion of 'founders getting 25% of all transactions' is paralleled with taxation, where a portion of economic transactions is allocated to the government.
3. Inflation Benefits: In the crypto world, inflationary tokens might disproportionately benefit early holders or 'founders'. In the traditional economy, those who can borrow money or receive it first (like banks or financial institutions) may benefit from inflation before it impacts the economy.
4. Policy Changes: Cryptocurrencies are often lauded for their immutable protocols. In contrast, monetary policy governing fiat currency, such as the US dollar, can change based on decisions by the Federal Reserve or legislation, impacting interest rates and money supply.
5. Increase in Supply: A criticism of cryptocurrencies is rapid token issuance, which can devalue the currency. The US dollar has seen a significant increase in supply, especially with stimulus measures and quantitative easing.
By framing the US dollar with these considerations, it invites a reflective comparison with the principles of cryptocurrency. It's a thought-provoking take on what we value in a currency and how different models approach these concerns. $BTC
#USDTMarketcap #taxation #inflations #CentralBanking #Write2Earn
The image cleverly challenges our perceptions by listing attributes that might be seen as red flags in a digital asset and revealing that they actually describe the US dollar:
1. Infinite Supply: Unlike cryptocurrencies like Bitcoin, which have a capped supply, the US dollar can be printed without limit, potentially leading to inflation.
2. Allocation of Transaction Fees: The notion of 'founders getting 25% of all transactions' is paralleled with taxation, where a portion of economic transactions is allocated to the government.
3. Inflation Benefits: In the crypto world, inflationary tokens might disproportionately benefit early holders or 'founders'. In the traditional economy, those who can borrow money or receive it first (like banks or financial institutions) may benefit from inflation before it impacts the economy.
4. Policy Changes: Cryptocurrencies are often lauded for their immutable protocols. In contrast, monetary policy governing fiat currency, such as the US dollar, can change based on decisions by the Federal Reserve or legislation, impacting interest rates and money supply.
5. Increase in Supply: A criticism of cryptocurrencies is rapid token issuance, which can devalue the currency. The US dollar has seen a significant increase in supply, especially with stimulus measures and quantitative easing.
By framing the US dollar with these considerations, it invites a reflective comparison with the principles of cryptocurrency. It's a thought-provoking take on what we value in a currency and how different models approach these concerns. $BTC
#USDTMarketcap #taxation #inflations #CentralBanking #Write2Earn
Legendary investor Buffett, US Treasury Long VS Little Buffett Bill Ackman, US Treasury Short
[]
Credit rating agency Fitch recently downgraded the US sovereign credit rating. Since then, the US 10-year bond yield soared to 4.188%, rising to the level of the US stock market plunge in October last year. After the US debt ceiling negotiations, it was announced that it would increase debt by $ 1.89 trillion in the second half of this year, and while the market is expected to increase the issuance of government bonds in the future, Buffett and Bill Ackman are attracting attention by showing conflicting positions in government bond positions.
Buffett claims
There are things in the world that people don't have to worry about. The dollar is the world's key currency, and this is a fact that everyone knows. US Dollar King Wangjjang.
Ackman claim
Increased issuance of U.S. Treasury bonds to cover government spending. Pessimism that if long-term inflation in the US stays at 3% instead of 2%, the yield on 30-year US Treasury bonds will reach 5.5% from the current level of 4.19%.
Personally, I'd like to support Ackman's claim. Already, US Treasury yields are showing abnormal conditions beyond the trend that has been going on since the 80s. The reason why US bond yields have been able to slump over the long term is because US Treasury bonds have been a safe haven asset in times of low inflation, i.e. a recession. Still, I think the high inflation disproves that US Treasuries are really unpopular.
If inflation rises from 2% to 3% in the US, the attractiveness of government bonds, which have relatively low yields compared to higher inflation, will be less attractive. Then, demand for US bonds will decrease, and as bond prices fall, yields are more likely to remain higher than before. If demand for U.S. Treasury bonds declines, there will be less conversion of dollars to buy U.S. Treasury bonds in other countries, which could fundamentally increase the likelihood of a decline in the value of the dollar.
Here, as a coin investor, what to think about is 'Does the US tolerate rising inflation?' I think this is good news for Bitcoin. Since the inflation rate has increased from 2% to 3%, 33%, on the contrary, the dollar has lost its value. I think investors who have their eyes on the dollar will pay more attention to Bitcoin or gold.
#UStreasury #short #inflations
Credit rating agency Fitch recently downgraded the US sovereign credit rating. Since then, the US 10-year bond yield soared to 4.188%, rising to the level of the US stock market plunge in October last year. After the US debt ceiling negotiations, it was announced that it would increase debt by $ 1.89 trillion in the second half of this year, and while the market is expected to increase the issuance of government bonds in the future, Buffett and Bill Ackman are attracting attention by showing conflicting positions in government bond positions.
Buffett claims
There are things in the world that people don't have to worry about. The dollar is the world's key currency, and this is a fact that everyone knows. US Dollar King Wangjjang.
Ackman claim
Increased issuance of U.S. Treasury bonds to cover government spending. Pessimism that if long-term inflation in the US stays at 3% instead of 2%, the yield on 30-year US Treasury bonds will reach 5.5% from the current level of 4.19%.
Personally, I'd like to support Ackman's claim. Already, US Treasury yields are showing abnormal conditions beyond the trend that has been going on since the 80s. The reason why US bond yields have been able to slump over the long term is because US Treasury bonds have been a safe haven asset in times of low inflation, i.e. a recession. Still, I think the high inflation disproves that US Treasuries are really unpopular.
If inflation rises from 2% to 3% in the US, the attractiveness of government bonds, which have relatively low yields compared to higher inflation, will be less attractive. Then, demand for US bonds will decrease, and as bond prices fall, yields are more likely to remain higher than before. If demand for U.S. Treasury bonds declines, there will be less conversion of dollars to buy U.S. Treasury bonds in other countries, which could fundamentally increase the likelihood of a decline in the value of the dollar.
Here, as a coin investor, what to think about is 'Does the US tolerate rising inflation?' I think this is good news for Bitcoin. Since the inflation rate has increased from 2% to 3%, 33%, on the contrary, the dollar has lost its value. I think investors who have their eyes on the dollar will pay more attention to Bitcoin or gold.
#UStreasury #short #inflations
The U-Mich consumer sentiment surged, but long-term inflation remains a challengeđ€
U-Mich consumer sentiment jumped to 72.6, the highest levels since September 2021, led by a surge in current conditions (77.5 vs 69 prior) and a slight drop in 1-year inflation expectations (3.4% vs 3.3% prior), matching the lowest levels seen since early 2021. The drop in near-term expectations matches the softening seen in recent hard inflation data, where the % of CPI categories showing increasing YoY growth is at the lowest levels since 2009. However, the only wrinkle in the release was the rebound in long-term inflation expectations back to 3.1%, matching a 12-year high going back to 2010. It appears that the battle to take long inflation in the long-run is going to take quite a while longer.
#Umich #consumer #inflations #CPIData
U-Mich consumer sentiment jumped to 72.6, the highest levels since September 2021, led by a surge in current conditions (77.5 vs 69 prior) and a slight drop in 1-year inflation expectations (3.4% vs 3.3% prior), matching the lowest levels seen since early 2021. The drop in near-term expectations matches the softening seen in recent hard inflation data, where the % of CPI categories showing increasing YoY growth is at the lowest levels since 2009. However, the only wrinkle in the release was the rebound in long-term inflation expectations back to 3.1%, matching a 12-year high going back to 2010. It appears that the battle to take long inflation in the long-run is going to take quite a while longer.
#Umich #consumer #inflations #CPIData
đš The dream of a 'soft landing' in the economy is just that a fairy tale. Despite hopes, the Fed's high interest rates aimed to control inflation won't prevent a looming market bubble burst. With inflation stubborn & the US in debt, a financial crisis may be on the horizon.
#economy #inflations #CryptoNews #CryptoNewsFlash #CryptoNewsđđ°đ«
Source: ZeroHedge
#economy #inflations #CryptoNews #CryptoNewsFlash #CryptoNewsđđ°đ«
Source: ZeroHedge
Global manufacturing PMI continues to decline, inflation pressure raises concernsđ„ș
UK manufacturing survey stumbling out of the gate with a 45 print, followed by Germany's manufacturing PMI at 38.8 vs 41 expected. These surveys continue a long-standing trend of the manufacturing sector struggling under the weight of higher rates and supply-chain challenges, while the services PMIs have continued to show strength thanks to a resilient consumer base.
In the US, S&P Manufacturing PMI improved slightly to 49 for July, while services PMI declined to 52.4 but remained in expansion territory. However, there's an unwelcome rebound in input prices to 50.6 vs 47.2 in the previous month, signaling potential difficulty in reducing inflation below 3% in the near term.
#PMI #inflations #UK #US #Germany
UK manufacturing survey stumbling out of the gate with a 45 print, followed by Germany's manufacturing PMI at 38.8 vs 41 expected. These surveys continue a long-standing trend of the manufacturing sector struggling under the weight of higher rates and supply-chain challenges, while the services PMIs have continued to show strength thanks to a resilient consumer base.
In the US, S&P Manufacturing PMI improved slightly to 49 for July, while services PMI declined to 52.4 but remained in expansion territory. However, there's an unwelcome rebound in input prices to 50.6 vs 47.2 in the previous month, signaling potential difficulty in reducing inflation below 3% in the near term.
#PMI #inflations #UK #US #Germany
Inflation and Bitcoin: A descriptive time-series analysis
Highlights
Changes in Bitcoin Granger cause changes in the forward inflation rate.A one-standard-deviation shock to Bitcoin results in a persistent increase in expected inflation.The relation between Bitcoin and inflation is not driven by the pandemic.
This study examines the time-series relation between Bitcoin and forward inflation expectation rates. Using a vector autoregressive process, we find that changes in Bitcoin Granger cause changes in the forward inflation rate. Furthermore, imposing an exogenous shock to Bitcoinâs price results in a persistent increase in the forward inflation rate. Our findings provide support for the notion that Bitcoin may be used as a hedge against inflation as changes in the price of Bitcoin tend to lead changes in the expected inflation.
Introduction
The market capitalization for Bitcoin recently eclipsed a trillion dollars. Practitioners and some researchers have suggested that Bitcoin is a viable hedge against inflation. For instance, in May of 2020, Bloomberg News reported that hedge fund manager Paul Tudor Jones responded to concerns about the expansionary policy by many of the worldâs central banks during the Covid-19 pandemic by purchasing Bitcoin.
Likewise, MicroStrategy Inc., the largest publicly traded business intelligence company, raised its holdings of Bitcoin in February of 2021 by about 20,000 coins because it believes the cryptocurrency to be a âdependable store of valueâ.2Unlike traditional currencies, Bitcoin has a fixed limit of 21 million coins and trades in a decentralized unregulated system. Schilling and Uhlig (2019) provide a theoretical overview of the interaction between Bitcoin and a more traditional currency that is supplied by a central bank. The authors allow the supply of Bitcoin to grow deterministically and show that Bitcoin can be considered a viable, albeit volatile medium of exchange.The strong demand for, limited supply of, and monetization of Bitcoin gives it the potential to protect against rising prices, which fits the definition of inflation hedge implied by Reilly et al. (1970) and Cagan (1974).
In contrast to the hedging arguments above, other economists have suggested that Bitcoin is simply a speculative investment that does not resemble anything like a traditional monetary instrument. In fact, the Federal Reserve Chairman, Jerome Powell, stated in March of 2021 that cryptocurrencies are âhighly volatile and therefore not really useful stores of value⊠a speculative asset that is essentially a substitute for gold rather than for the dollarâ. Baur et al. (2018) provide empirical evidence that Bitcoin is uncorrelated with traditional assets such as stocks, bonds, or commodities, suggesting it is mainly used as a speculative investment. Furthermore, Peetz and Mall (2017) argue that Bitcoin is not a transaction currency for a variety of reasons such as the difficulty to value, the lack of intrinsic worth, and its limited transaction capacity.
Given the conflicting opinions regarding Bitcoin as a potential inflation hedge, a structural analysis of both Bitcoin and expected inflation seems warranted. In this study, we conduct a variety of multivariate time-series tests to examine the leadâlag relation between Bitcoin and the Federal Reserve Bank of St. Louis 5-year forward inflation expectation rates. According to Branch (1974), Fama and MacBeth (1974), and Oudet (1973), a security is an inflation hedge if its returns are independent of the rate of inflation. As noted by Bodie (1976), such independence can be loosely defined as a positive correlation between the nominal rate of return on a particular asset and the rate of inflation.
Results from our multivariate time-series tests are striking. First, we find that changes in the price of Bitcoin Granger (1969) cause changes in the forward inflation rate. However, the opposite direction of causation is not observed. We then estimate a series of vector autoregressive (VAR) equations, where both changes in Bitcoin and changes in the forward inflation rate are treated endogenously. We impose an exogenous shock of the change in Bitcoin and estimate impulse response functions for changes in the forward inflation rate. Interestingly, accumulated impulse response functions become positive shortly after the exogenous stock to the change in Bitcoin. Moreover, the results are robust across the pre- and post-Covid periods and the inclusion of several different lags in the VAR framework.
Our findings provide general support for the idea that Bitcoin could be used as a viable hedge against inflation as its returns are not only positively correlated with the future inflation expectation rate, but tend to lead it. Thus, our results contribute to the broad literature that focuses on inflation hedging.
In particular, Narayan et al. (2019) show that the growth rate in Bitcoin is related to Indonesiaâs monetary aggregates. Their empirical results suggest that, in the case of Indonesia, changes in Bitcoin are directly related to inflation. Our findings also tangentially contribute to the growing body of research regarding the efficiency of Bitcoin.The relation we find between Bitcoin and the forward inflation rate could stem from structural differences in the respective markets where these instruments trade or it could be an indication of where prices are being discovered.
Section snippets
Data description
The data used throughout the analysis are obtained from two primary sources. From CoinMarketCap, we gather daily prices in Bitcoin for the two-year period that ranges from January 1st, 2019 to December 31st, 2020. During this same period, we gather the 5-Year Forward Inflation Expectation Rate (T5YIFR) from the St. Louis Federal Reserve Bank. This rate is defined as follows:
We estimate both the likelihood ratio test and Akaikeâs information criterion and determine that the appropriate number of lags in Eq. (3) falls between one and five. To determine the proper ordering of the above VAR model, we begin by estimating Granger
Conclusion
We find that changes in Bitcoin Granger cause changes in the forward inflation rate, but not vice-versa. We also find strong evidence that an unexpected increase in the price of Bitcoin is associated with a significant and persistent increase in the forward inflation rate. The findings in this paper have important implications for both investment managers and policymakers. First, our results suggest that Bitcoin can act as a hedge against expected inflation. This is important for investment
Declaration of Competing Interest
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
#Write2Earn! #BTCâ #inflations
Changes in Bitcoin Granger cause changes in the forward inflation rate.A one-standard-deviation shock to Bitcoin results in a persistent increase in expected inflation.The relation between Bitcoin and inflation is not driven by the pandemic.
This study examines the time-series relation between Bitcoin and forward inflation expectation rates. Using a vector autoregressive process, we find that changes in Bitcoin Granger cause changes in the forward inflation rate. Furthermore, imposing an exogenous shock to Bitcoinâs price results in a persistent increase in the forward inflation rate. Our findings provide support for the notion that Bitcoin may be used as a hedge against inflation as changes in the price of Bitcoin tend to lead changes in the expected inflation.
Introduction
The market capitalization for Bitcoin recently eclipsed a trillion dollars. Practitioners and some researchers have suggested that Bitcoin is a viable hedge against inflation. For instance, in May of 2020, Bloomberg News reported that hedge fund manager Paul Tudor Jones responded to concerns about the expansionary policy by many of the worldâs central banks during the Covid-19 pandemic by purchasing Bitcoin.
Likewise, MicroStrategy Inc., the largest publicly traded business intelligence company, raised its holdings of Bitcoin in February of 2021 by about 20,000 coins because it believes the cryptocurrency to be a âdependable store of valueâ.2Unlike traditional currencies, Bitcoin has a fixed limit of 21 million coins and trades in a decentralized unregulated system. Schilling and Uhlig (2019) provide a theoretical overview of the interaction between Bitcoin and a more traditional currency that is supplied by a central bank. The authors allow the supply of Bitcoin to grow deterministically and show that Bitcoin can be considered a viable, albeit volatile medium of exchange.The strong demand for, limited supply of, and monetization of Bitcoin gives it the potential to protect against rising prices, which fits the definition of inflation hedge implied by Reilly et al. (1970) and Cagan (1974).
In contrast to the hedging arguments above, other economists have suggested that Bitcoin is simply a speculative investment that does not resemble anything like a traditional monetary instrument. In fact, the Federal Reserve Chairman, Jerome Powell, stated in March of 2021 that cryptocurrencies are âhighly volatile and therefore not really useful stores of value⊠a speculative asset that is essentially a substitute for gold rather than for the dollarâ. Baur et al. (2018) provide empirical evidence that Bitcoin is uncorrelated with traditional assets such as stocks, bonds, or commodities, suggesting it is mainly used as a speculative investment. Furthermore, Peetz and Mall (2017) argue that Bitcoin is not a transaction currency for a variety of reasons such as the difficulty to value, the lack of intrinsic worth, and its limited transaction capacity.
Given the conflicting opinions regarding Bitcoin as a potential inflation hedge, a structural analysis of both Bitcoin and expected inflation seems warranted. In this study, we conduct a variety of multivariate time-series tests to examine the leadâlag relation between Bitcoin and the Federal Reserve Bank of St. Louis 5-year forward inflation expectation rates. According to Branch (1974), Fama and MacBeth (1974), and Oudet (1973), a security is an inflation hedge if its returns are independent of the rate of inflation. As noted by Bodie (1976), such independence can be loosely defined as a positive correlation between the nominal rate of return on a particular asset and the rate of inflation.
Results from our multivariate time-series tests are striking. First, we find that changes in the price of Bitcoin Granger (1969) cause changes in the forward inflation rate. However, the opposite direction of causation is not observed. We then estimate a series of vector autoregressive (VAR) equations, where both changes in Bitcoin and changes in the forward inflation rate are treated endogenously. We impose an exogenous shock of the change in Bitcoin and estimate impulse response functions for changes in the forward inflation rate. Interestingly, accumulated impulse response functions become positive shortly after the exogenous stock to the change in Bitcoin. Moreover, the results are robust across the pre- and post-Covid periods and the inclusion of several different lags in the VAR framework.
Our findings provide general support for the idea that Bitcoin could be used as a viable hedge against inflation as its returns are not only positively correlated with the future inflation expectation rate, but tend to lead it. Thus, our results contribute to the broad literature that focuses on inflation hedging.
In particular, Narayan et al. (2019) show that the growth rate in Bitcoin is related to Indonesiaâs monetary aggregates. Their empirical results suggest that, in the case of Indonesia, changes in Bitcoin are directly related to inflation. Our findings also tangentially contribute to the growing body of research regarding the efficiency of Bitcoin.The relation we find between Bitcoin and the forward inflation rate could stem from structural differences in the respective markets where these instruments trade or it could be an indication of where prices are being discovered.
Section snippets
Data description
The data used throughout the analysis are obtained from two primary sources. From CoinMarketCap, we gather daily prices in Bitcoin for the two-year period that ranges from January 1st, 2019 to December 31st, 2020. During this same period, we gather the 5-Year Forward Inflation Expectation Rate (T5YIFR) from the St. Louis Federal Reserve Bank. This rate is defined as follows:
We estimate both the likelihood ratio test and Akaikeâs information criterion and determine that the appropriate number of lags in Eq. (3) falls between one and five. To determine the proper ordering of the above VAR model, we begin by estimating Granger
Conclusion
We find that changes in Bitcoin Granger cause changes in the forward inflation rate, but not vice-versa. We also find strong evidence that an unexpected increase in the price of Bitcoin is associated with a significant and persistent increase in the forward inflation rate. The findings in this paper have important implications for both investment managers and policymakers. First, our results suggest that Bitcoin can act as a hedge against expected inflation. This is important for investment
Declaration of Competing Interest
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
#Write2Earn! #BTCâ #inflations
đEverything Will Trend to Zero in Terms of #Bitcoin đ
Let Me Explain:
- đ Prices Reflect Supply and Demand: Prices are just exchange rates; when you swap USD for goods, you're trading one thing for another.
- đ” Unlimited USD Supply: The Fed can create dollars with a keystrokeâno real resources required. This makes USD abundant and less valuable over time.
- đïž Goods & Services Are Scarce: Unlike USD, goods and services require time, effort, energy, and materials to produce, making them inherently more valuable.
- đ USD Prices Trend to Infinity: Since USD supply is limitless, prices of goods in USD rise because the currency becomes weaker over time.
đ„ Visit My Pinned post to get profitable insight
đ In Contrast: Bitcoinâs Scarcity
- âïž Bitcoin Has a Fixed Supply: Only a limited amount of Bitcoin can be produced every 10 minutes, with the rate halving every 4 years.
- đ Decreasing Bitcoin Issuance: As time goes on, Bitcoin's supply grows slower, while we get better at producing goods and services.
- đ Bitcoin Hoarding Effect: Many holders keep their BTC, anticipating rising purchasing power, making it even scarcer in circulation.
đĄ The Big Picture:
- đ Goods & Services vs. BTC: As the supply of goods rises and BTC supply falls, the prices of goods in BTC terms will trend down.
- đž USD Inflation vs. BTC Deflation: Dollars can be printed endlessly, inflating prices. Bitcoinâs capped supply drives its value higher over time.
- đĄ Long-Term Value Shift: A house's price in USD will keep rising, but in BTC terms, it will fall, highlighting Bitcoinâs superior scarcity and value retention.
đ Bottom Line: Everything becomes cheaper in Bitcoin terms because BTC's supply is capped while everything else keeps growing. đȘđ #BTCâ #inflations #scarcity $BTC
- đ Prices Reflect Supply and Demand: Prices are just exchange rates; when you swap USD for goods, you're trading one thing for another.
- đ” Unlimited USD Supply: The Fed can create dollars with a keystrokeâno real resources required. This makes USD abundant and less valuable over time.
- đïž Goods & Services Are Scarce: Unlike USD, goods and services require time, effort, energy, and materials to produce, making them inherently more valuable.
- đ USD Prices Trend to Infinity: Since USD supply is limitless, prices of goods in USD rise because the currency becomes weaker over time.
đ„ Visit My Pinned post to get profitable insight
đ In Contrast: Bitcoinâs Scarcity
- âïž Bitcoin Has a Fixed Supply: Only a limited amount of Bitcoin can be produced every 10 minutes, with the rate halving every 4 years.
- đ Decreasing Bitcoin Issuance: As time goes on, Bitcoin's supply grows slower, while we get better at producing goods and services.
- đ Bitcoin Hoarding Effect: Many holders keep their BTC, anticipating rising purchasing power, making it even scarcer in circulation.
đĄ The Big Picture:
- đ Goods & Services vs. BTC: As the supply of goods rises and BTC supply falls, the prices of goods in BTC terms will trend down.
- đž USD Inflation vs. BTC Deflation: Dollars can be printed endlessly, inflating prices. Bitcoinâs capped supply drives its value higher over time.
- đĄ Long-Term Value Shift: A house's price in USD will keep rising, but in BTC terms, it will fall, highlighting Bitcoinâs superior scarcity and value retention.
đ Bottom Line: Everything becomes cheaper in Bitcoin terms because BTC's supply is capped while everything else keeps growing. đȘđ #BTCâ #inflations #scarcity $BTC
CBRT Governor Hafize Gaye Erkan Emphasizes Determination in the Fight Against Inflation!
Hafize Gaye Erkan, the Governor of the Central Bank of Turkey (CBRT), made significant statements regarding the measures taken to combat inflation and the future targets. Erkan revised the year-end inflation forecast from 22.3% to 58%, but emphasized that this increase is a temporary situation and they have initiated a monetary tightening process to ensure price stability. Here are the key points from Erkan's statements:
Monetary Tightening Process:
The Central Bank Governor stated that they have initiated a monetary tightening process to achieve a permanent reduction in inflation and they will strengthen it as needed. Along with interest rate hikes, selective credit and quantitative tightening measures will also be implemented. #interestrate
Future of Inflation:
Erkan stated that the current inflation surge will be temporary, and they aim to lay the groundwork for disinflation to begin in 2024. They further predict that a period of stability will commence in 2025, leading to a faster decline in inflation.
Main Trends and Expectations:
Erkan expressed confidence that inflation's main trend and expectations will consistently improve during the disinflation process, and the decisions taken will reflect this improvement by the second quarter of 2024. She highlighted that essential goods, food, and energy items have a significant impact on inflation, while the contribution of the services sector remains stable.
Domestic Demand and Current Account:
Erkan mentioned that strong domestic demand has been effective in the economy, while total supply has been more moderate. They predict that selective credit tightening measures will keep domestic demand in balance, and they expect a significant improvement in the current account balance in the second half of the year due to the impact of monetary tightening measures.
Exchange Rate and Other Factors:
The Governor acknowledged that exchange rate pass-through has increased, but she stated that the monetary tightening process will support exchange rate stability. Erkan also pointed out that wage increases have led to cost increases, which will be reflected in prices within a few months. Additionally, she mentioned that price increases in the service sector are still at high levels, and rent increases also have an impact on inflation.
Determination and Independence:
Erkan emphasized the importance of managing expectations to break the inertia in inflation and stated that they will use all tools with determination until inflation reaches single digits, avoiding any political statements. She underlined that the Central Bank will make independent decisions.
Future Plans:
Regarding the weak performance of commercial loans, Erkan mentioned they expect a recovery in July. They also plan to diversify Turkish lira savings instruments and support the deepening of capital markets. Furthermore, she disclosed that reserves have strengthened, financing conditions have improved, and exchange rate volatility has decreased.
Inflation Forecasts:
Erkan shared the updates on inflation forecasts, indicating that they have raised the year-end inflation forecast to 58%, set the 2024 forecast at 33%, and established the 2025 year-end inflation forecast at 15%. #inflations #TCMB
In Summary:
According to the statements of CBRT Governor Hafize Gaye Erkan, the monetary tightening measures in the fight against inflation will continue with determination, and a decrease in inflation is expected in the coming years. The goal is to implement cautious policies and achieve economic stability through independent decisions. The temporary inflation surge is expected to be balanced in the near future, and a disinflation process is foreseen to begin. #CBRT #Turkey
Monetary Tightening Process:
The Central Bank Governor stated that they have initiated a monetary tightening process to achieve a permanent reduction in inflation and they will strengthen it as needed. Along with interest rate hikes, selective credit and quantitative tightening measures will also be implemented. #interestrate
Future of Inflation:
Erkan stated that the current inflation surge will be temporary, and they aim to lay the groundwork for disinflation to begin in 2024. They further predict that a period of stability will commence in 2025, leading to a faster decline in inflation.
Main Trends and Expectations:
Erkan expressed confidence that inflation's main trend and expectations will consistently improve during the disinflation process, and the decisions taken will reflect this improvement by the second quarter of 2024. She highlighted that essential goods, food, and energy items have a significant impact on inflation, while the contribution of the services sector remains stable.
Domestic Demand and Current Account:
Erkan mentioned that strong domestic demand has been effective in the economy, while total supply has been more moderate. They predict that selective credit tightening measures will keep domestic demand in balance, and they expect a significant improvement in the current account balance in the second half of the year due to the impact of monetary tightening measures.
Exchange Rate and Other Factors:
The Governor acknowledged that exchange rate pass-through has increased, but she stated that the monetary tightening process will support exchange rate stability. Erkan also pointed out that wage increases have led to cost increases, which will be reflected in prices within a few months. Additionally, she mentioned that price increases in the service sector are still at high levels, and rent increases also have an impact on inflation.
Determination and Independence:
Erkan emphasized the importance of managing expectations to break the inertia in inflation and stated that they will use all tools with determination until inflation reaches single digits, avoiding any political statements. She underlined that the Central Bank will make independent decisions.
Future Plans:
Regarding the weak performance of commercial loans, Erkan mentioned they expect a recovery in July. They also plan to diversify Turkish lira savings instruments and support the deepening of capital markets. Furthermore, she disclosed that reserves have strengthened, financing conditions have improved, and exchange rate volatility has decreased.
Inflation Forecasts:
Erkan shared the updates on inflation forecasts, indicating that they have raised the year-end inflation forecast to 58%, set the 2024 forecast at 33%, and established the 2025 year-end inflation forecast at 15%. #inflations #TCMB
In Summary:
According to the statements of CBRT Governor Hafize Gaye Erkan, the monetary tightening measures in the fight against inflation will continue with determination, and a decrease in inflation is expected in the coming years. The goal is to implement cautious policies and achieve economic stability through independent decisions. The temporary inflation surge is expected to be balanced in the near future, and a disinflation process is foreseen to begin. #CBRT #Turkey
"How Inflation Devoured Grandma's Savings: A Tale of Forgotten Peso Bills"
A man recently discovered his grandmother's savings, tucked away for 18 years after her passing. đ°ïž Among her possessions were stacks of 2 peso bills, now obsolete. In her day, they represented a substantial sum, but today they're worth barely $5. đž This serves as a poignant lesson on the erosion of wealth due to inflation. đ
#FamilyLegacy #inflations #FinancialPlanning #wealtherosion #flatcurrency
A man recently discovered his grandmother's savings, tucked away for 18 years after her passing. đ°ïž Among her possessions were stacks of 2 peso bills, now obsolete. In her day, they represented a substantial sum, but today they're worth barely $5. đž This serves as a poignant lesson on the erosion of wealth due to inflation. đ
#FamilyLegacy #inflations #FinancialPlanning #wealtherosion #flatcurrency
Inflation in Germany for October 2023. đ©đȘ
The Consumer Price Index (CPI) data for Germany has been released, and there are some noteworthy highlights for October 2023.
Here are the key takeaways:
- Annual Inflation: In October 2023, the annual inflation rate in Germany was reported at 3.8%. This marks the lowest level since August 2021 and falls below the economist-predicted rate of 4.0%.
- Monthly Change: The month-to-month CPI change for October is reported at 0.0%. This suggests that there was no significant change in inflation rates compared to the previous month, indicating a temporary situation.
- Expected and Previous Data: Analysts had anticipated a 4.0% annual inflation rate for October. However, the actual rate of 3.8% is below these expectations. In the previous month, the annual inflation rate was at 4.5%, indicating a decline in October.
These inflation figures in Germany serve as an important indicator to monitor economic stability and monetary policies. The decrease in inflation in October may have economic implications that require close attention.
#inflations #Germany #cpi
The Consumer Price Index (CPI) data for Germany has been released, and there are some noteworthy highlights for October 2023.
Here are the key takeaways:
- Annual Inflation: In October 2023, the annual inflation rate in Germany was reported at 3.8%. This marks the lowest level since August 2021 and falls below the economist-predicted rate of 4.0%.
- Monthly Change: The month-to-month CPI change for October is reported at 0.0%. This suggests that there was no significant change in inflation rates compared to the previous month, indicating a temporary situation.
- Expected and Previous Data: Analysts had anticipated a 4.0% annual inflation rate for October. However, the actual rate of 3.8% is below these expectations. In the previous month, the annual inflation rate was at 4.5%, indicating a decline in October.
These inflation figures in Germany serve as an important indicator to monitor economic stability and monetary policies. The decrease in inflation in October may have economic implications that require close attention.
#inflations #Germany #cpi
$PEPE Scam Alert: Beware of Artificial Hype and Lack of Real Value*
The cryptocurrency market is no stranger to hype and volatility, but $PEPE has been raising some red flags lately. As a responsible #AI language model, I want to warn you about the potential risks associated with investing in $PEPE .
*Excessive Hype: A Classic Red Flag*
PEPE has been aggressively promoted by bloggers, social media influencers, and even bots. This kind of hype is often a sign of artificial price #inflations , where the price is driven up by hype rather than genuine demand. Be cautious of unsubstantiated claims and promises of guaranteed returns. Remember, if it sounds too good to be true, it probably is.
*Lack of Real Value: A Fundamental Problem*
Pepe doesn't seem to offer anything new or significant technologically. Its value proposition is unclear, and it may not have a solid foundation for long-term growth. Without a clear use case or competitive advantage, $PEPE 's value is largely dependent on speculation and hype.
*Other Warning Signs*
- Unusual trading volume and price movements
- Unregistered or unlicensed operations
- Unresponsive or evasive customer support
- Untransparent or misleading marketing practices
*Protect Yourself*
- #ResearchBeforeInvesting thoroughly before investing
- Be cautious of inflated hype and promises
- Look for concrete technological advancements and real value
- Never invest more than you can afford to lose
- Diversify your portfolio to minimize risk
*Stay Safe, Stay Informed*
Remember, the cryptocurrency market can be unpredictable, and it's crucial to prioritize caution and wisdom in your investment decisions. If you have any questions or concerns, feel free to ask!
$PEPE #PEPEâ #Write2Earn!
The cryptocurrency market is no stranger to hype and volatility, but $PEPE has been raising some red flags lately. As a responsible #AI language model, I want to warn you about the potential risks associated with investing in $PEPE .
*Excessive Hype: A Classic Red Flag*
PEPE has been aggressively promoted by bloggers, social media influencers, and even bots. This kind of hype is often a sign of artificial price #inflations , where the price is driven up by hype rather than genuine demand. Be cautious of unsubstantiated claims and promises of guaranteed returns. Remember, if it sounds too good to be true, it probably is.
*Lack of Real Value: A Fundamental Problem*
Pepe doesn't seem to offer anything new or significant technologically. Its value proposition is unclear, and it may not have a solid foundation for long-term growth. Without a clear use case or competitive advantage, $PEPE 's value is largely dependent on speculation and hype.
*Other Warning Signs*
- Unusual trading volume and price movements
- Unregistered or unlicensed operations
- Unresponsive or evasive customer support
- Untransparent or misleading marketing practices
*Protect Yourself*
- #ResearchBeforeInvesting thoroughly before investing
- Be cautious of inflated hype and promises
- Look for concrete technological advancements and real value
- Never invest more than you can afford to lose
- Diversify your portfolio to minimize risk
*Stay Safe, Stay Informed*
Remember, the cryptocurrency market can be unpredictable, and it's crucial to prioritize caution and wisdom in your investment decisions. If you have any questions or concerns, feel free to ask!
$PEPE #PEPEâ #Write2Earn!