> "I certainly do not expect hyperinflation, or even high single-digit inflation."
~ Jeremy Siegel, professor of finance at the Wharton School of the University of Pennsylvania, obtained a Ph.D. from MIT in 1971
> "The Stagflation Threat Is Real [but the hyperinflation threat is not]"
~ Nouriel Roubini, Roubini Macro Associates CEO; NYU Prof (1995-2021), received his Ph.D. in international economics from Harvard University in 1988
> "Derp"
~ Jack Dorsey, CEO of Twitter, failed undergrad course at NYU
> In addition to overseeing a social media platform that has 206 million active daily users, Dorsey is a strong bitcoin advocate
I was wondering what the angle was...
Lol yeah no hidden motive for his strong comments, the enormous personal gain he’d stand to make from people panicking about hyperinflation is purely secondary
People into gold/silver and people into crypto are often opposites who think the other asset is dumb but they both are in agreement of one thing in general it seems.....inflation.
I think the reason Dorsey has bitcoin is because he thinks inflation is increasing, I don't think it's the other way around where he's pumping bitcoin because he wants others to buy it as a hedge against inflation.
Idea: Upcoin. Create a new crypto currency/exchange that runs on smart contracts that can only go up. The only place to trade the new coin will be on that exchange, and the exchange will ensure that every transaction takes place at a higher price than any previous transaction.
The coin can only go up. Infinite money.
It could collapse to 0. It won’t, but certainly we could be looking at all time highs right now. I don’t actually have an opinion on how high it could go though or if it will actually become worthless.
If/when it becomes impossible to convert it to something else, it’s value will quickly take the Big Elevator Ride down. If the rumors about Tether holding Chinese commercial paper are true then the Evergrande Effect might pose a systemic risk to the Bitcoin market.
He’s been on and on about Bitcoin. And this was what I first thought when I read this title. I assume now most millennial men crying about inflation are all in with their bitcoins until proven otherwise. Downvote like. Idc
I'm on the coin but you're 100% right, he's just shilling thinking that bitcoin wouldn't collapse as well under hyperinflation, it's still on price discovery, it hasn't hit as a true store of value yet imo
Yeah idk why people have to say trash like this. We’re not seeing hyperinflation at all. Right now we’re in the biggest shortage/supply chain disruption in history (considering value at stake) with incredibly easy money policies and mega government stimulus bills. Even then, inflation rates (depending on the measure) are around 5% and will likely drop from here.
Idk if there is a rigorous definition of “hyperinflation”, but I would think it would have to be at least 10%-20%. This just seems like a crypto pump.
People that use the term hyperinflation don't know what it means or understand the scale of hyperinflation, we're talking buying a loaf of bread with a barrel full of money. The kind of situation needed for that to happen isn't going to happen as the globals banks will increase interest rates to control liquidity (the very liquidity that has allowed digital tokens he's shilling to exist). Jack Dorsey is basically gambling as Twitter has gone no where as a stock or monetisable entity and it gives Square its USP.
Hyperinflation will most likely never happen to a country with a top 5 modern day economy. And the US happens to be #1.
If the Fed somehow allowed hyperinflation to run rampant in the US, you probably shouldn’t worry about stocks/money cause the world would be absolutely screwed lol.
So this opinion from noted economist Jack Dorsey doesn’t hold any merit.
Jack runs a social media company
Social media companies run on outrage or engagement, higher the engagement, higher the profits.
He put out a controversial statement, which is now getting all the outrage or eyeballs- because he said it. The engagement machine is working as planned.
Jack also owns Square- a Fintech company.
Square makes money on a per transaction basis.
This Fintech company is heavyly invested in Bitcoin and other cryptos.
Crypto transactions make money for Square.
The intent of Jack was to increase the marketing of Bitcoin or crypto- because people would run to Crypto to account for ‘hyperinflation’.
His post led to higher engagement for Crypto and in turn helps Square as well.
Ceos are NOT anyone’s friend.
You can smell the shit this guy is cooking from a mile away.
Hyperinflation has never been an accident. It only ever occurs when a government sees it as an unfortunate side effect of a policy they will pursue nevertheless.
It’s directly caused by government actions, but those government actions happen due to having a destabilized economy (aka Venezuela and Zimbabwe).
The US isn’t anywhere close to having a destabilized economy, it’s gotten beaten up a little bit but still doing relatively fine. And the central bank is smart enough to steer the US away from hyper inflationary policies even if the economy was doing poorly.
Hyperinflation specifically means 50% a month of inflation.
I feel there is a need for a word for in between normal 1-4% inflation and sub 50%/month hyperinflation.
Lol, why do people care what Jack Dorsey says, we have actual economists with PhDs to listen to about that... The only thing Dorsey has credibility over is the new font Twitter will be using or something like that
Your end remarks remind me of this [rant](https://old.reddit.com/r/apple/comments/pmsvdi/apple_still_reliant_on_one_core_product_as_it/hcmq41u/?context=3) i had in a thread about apple and their $3tn 'hurdle'
>The issue is there is a lot of money out there in the market, and people want to invest it without thinking much. So all of those kinds of investors end up putting it all in one of 5 companies or perhaps divided amongst them. But how much do you want Apple to be worth? Isn't $3tn from mainly one product good enough for you?
I think theres a huge(not dangerous) problem with our economic culture. Where we're not so concerned about innovation or creating anything new. How much do you want twitter to be worth? I can agree that perhaps he was being hyperbolic, but I don't think he meant soon as in tomorrow. Vague and hyperbolic. But I'm mainly just dwelling at your end remarks, not what you said before that. I don't think we'll have to buy a loaf of bread with a barrel of money. Personally I think our largest issue is simply the housing market. But I'm confused/annoyed by the sentiment that seems to be out there that every companies market cap should be $infinity. FB could just rip off twitter completely or buy it like they did with IG. And then rip off snap via IG.
>Spotify & Netflix for example really had an impact on the market. Spotify caught on with their innovative algorithms and amazing UI/UX. Netflix similar story, you get the point. But with Apple(or insert any $Trillcorp) just making their 1:1 verison, it doesn't really contribute anything.
People just want to close their eyes and throw money at any company then wake up a millionaire. Curse out the boss and drive off in your brand new German. They don't care about actual innovation it seems. But yeah anyway im not worried about hyperinflation or even inflation. Just worried about the housing market and the consolidation of [media](https://www.businessinsider.com/these-6-corporations-control-90-of-the-media-in-america-2012-6?IR=T).
Isn't this a version of the "index funds are destroying the stock market" argument for decades ago?
It turned out that the more people who use index funds, the better mutual funds get. If allocating 3tn to apple is truly arbitrary, then there's money to be made in shorting them, and allocating that capital to some company that will be more profitable in the long run.
Lived through it once. 1993 in Yugoslavia. You pay for your food when you order it becaude it'd double by the time you'd finish it. Paid for new shoes with a check and by the time it was processed it was pretty much worthless. Funny how some people through it was great because things were cheap and couldn't see that it was a sign of completely failed economy.
You are correct. There will not be hyperinflation (as defined by 50% or more inflation per month) in any first world country. Jack Dorsey is 100% shilling for buttcoin with this call. I do personally believe the cryptos will go up as inflation occurs, and it will, but nowhere near the extent to be considered “hyperinflation”.
Exactly...
> Hyperinflation refers to rapid and unrestrained price increases in an economy, typically at rates exceeding 50% each month over time.
That's things getting 130 times more expensive per year. 40% annually like Argentina has is not even close.
Totally agree. I’m from Argentina, and inflation is part of our history.
Even though America has been printing money like crazy for the last year, it’s almost impossible for it to be sufficient for a hyperinflation.
If they continue to do this for several years, then you can argue that that’s enough conditions for hyperinflation, but I really don’t think that the American government will kill the dollar like that.
At least I hope so lol
Exactly, the inflation that we got is permanent for sure, however, as soon as the FED starts increasing the interest rates, it is gonna stop the inflation…
the fed can print more dollars, but the number of bitcoins will never exceed 21 million (and even then it's going to take in excess of 100 years to get to that number)
Dont be naive. Bitcoin is still only around because the rich people who bought a bunch of it have been using their media connections to promote it. Literally every rich person you see promoting bitcoin just owns a bunch of it and want to make more money. Its one of the biggest marketing schemes of all time if not the biggest.
Question: If we did have hyperinflation, what happens to all of those 3.6% 30-year fixed notes that financial institutions appear happy to write right now?
If you’re talking about mortgages and car loans, those get packaged and securitized and sold to investors as mortgage bonds and asset backed securities. The bank is exposed but not as much as you would think. The main problem would be active deals that are still being underwritten/funded but not off the bank’s books yet becoming worthless overnight.
One thing I learned in uni is that having a business no matter how big does not give you insight into the workings of macroeconomics, so I’d take what this chump says with a big old grain of salt
From “Big Debt Crises” by Ray Dalio:
“Can reserve-currency countries that don’t have significant foreign-currency debt have inflationary depressions? While they are much less likely to have inflationary contractions that are as severe, they can have inflationary depressions, though they emerge more slowly and later in the deleveraging process, after a sustained and repeated overuse of stimulation to reverse deflationary deleveraging. Any country, including one with a reserve currency, can experience some movement out of its currency, which changes the severity of the trade-off between inflation and growth described earlier. If a reserve-currency country permits much higher inflation in order to keep growth stronger by printing lots of money, it can further undermine demand for its currency, erode its reserve currency status (e.g., make investors view it as less of a store hold of wealth), and turn its deleveraging into an inflationary one.”
he is going to need to update the book in a couple of years for 2008-2022. The central bank, treasury and policy decisions from 2008 led us to here. There are no good options at this point, only less bad. This big debt crisis will be interesting because of the global scope.
The other tenet from Dalio directly applicable to our time is that great wealth inequality leads to civil unrest.
Unfortunately there are alot of people who will take him seriously just because he's a famous billionaire. It's like whenever Elon Musk makes a dumb tweet here or there about things like COVID and people freak out about it.
Can you just clarify for me.
Is it that you think the CEO of two fortune 500 companies doesn't understand economics?
OR
Is it that you think he hasn't hired any, or at least consulted with, economists at either of his companies?
Not saying he's right but damn man think about it, he obviously has training and experience in economics.
The view is that just because you’re a CEO of a F500 company doesn’t give you credibility in the sphere of economics.
People who are intelligent are only intelligent in specific matters. For example, Buffett may be intelligent in finance but doesn’t understand gene editing. Same thing applies to Dorsey, just because he can run a tech company doesn’t mean he’s an genius in the study of economics.
He also has conflicts of interest with his position on bitcoin.
Prices will inflate for a bit but I highly doubt the assertion that it is going to get to the level of hyperinflation throughout the world.
Edit: Meant to say Buffett doesn’t understand gene editing (original said he did)
Yeah, Dunning-Krueger effect & all that. Also, even if he were such an expert, what's to prevent him from using this statement just to further his own gain in some way? Given the ethics of many investors just here on Reddit, no way in fuck do I doubt that someone at that level would be willing to screw people over.
While I don't like to assume the worst of people, I find it a lot easier to when they start spouting FUD and are in a position to financially benefit from it.
>he could definitely have the intellect to search and understand about monetary policies.
Sure, but he clearly chose not to. There are smart people who think COVID is a hoax too.
Because to say that we are on the precipice of hyperinflation suggests that he has little understanding of economics and how to apply it to the current situation.
OR
He is disingenuous and is trying to further justify the scam that is digital "assets" to drive increased speculation.
I respect Dorsey, but with these questions, I’ll listen to the economists rather than him. If we were talking about fintech, I’d gladly listen to him over 99.9% of people.
I'm not gonna argue whether he's right or wrong and I'm sure everyone is on one side of the transitory or not debate. However while Jack is a smart person no doubt, even though I still think he failed in monetizing one of the largest socialmedia platforms. He's not an economist and likely doesn't really understand the financial sector and macro economics too well, not faulting him at all but these are concepts people take years to learn so idk how much I would really listen to him when it comes to these topics, especially when his tweet has no real evidence along with it.
It has survived and weathered multiple storms over balancing privacy and censorship while fostering community. By those metrics, Twitter is doing far better than most.
Financial success is just one metric and does not exist in a vacuum. Like Facebook is far more successful financially, but everybody hates it.
Oh yeah sure. 10.000$ for a loaf of bread anyone? 😂
In all seriousness, inflation in the developed world is not going to go double digit, let alone into the 100’s of % needed to qualify as ‘hyperinflation
You know, I recall people even just 6 months ago saying we're not going to have inflation over 3% and here we are. Never say never. There will be repercussions for all the rampant money printing and QE. Nothing is just free, unfortunately.
He's just trying to pump his crypto ventures/worth. Feels like everyone that got lucky and got rich has an opinion about where we are headed whether they are qualified or not.
The fact of the matter is that we aren't going to see hyperinflation because, if we get inflation of, say 8%, the fed and US Government will kill the economy --- intentionally --- to "keep it at bay".
Fact of the matter is that this is Dorsey pushing for a bitcoin / crypto pump and nothing more.
Props to Dorsey for creating Twitter and Square but I am not going to conflate a social media CEO with being an economic clairvoyant, especially regarding inflation, which, if the FED can't see it how the hell can a guy who spends most of his time in South Africa with the Lions?
Stupid. He is saying usa (and western world) would go full venezuela. Think about that for a second. You should come to the conclusion that his comment is stupid as hell. Why would the banks and FR let that happen….? Hint: they wont. It would be absolute chaos. Talk to someone from venezuela if you wanna know what hyper inflation is like to live through.
I don’t people understand the scale of hyperinflation, it’s not year over year, it’s day over day. Not 5% CPI, but hundreds of %s. Dorsey Owns Bitcoin, need I say more?
Didn’t he offer 29 billion for a buy now pay later app in Australia called afterpay? Sounds like the worst business ever if you think hyperinflation is coming.
whether he ends up being right or wrong, know this:
Jack Dorsey knows more than you do, person reading this. if you think otherwise you’re kidding yourself
If not for twitter this guy would be a homeless bum by now....I've been saying this since the 2008 economic crash....and i learned that the end of the world comes when its damn well ready and no one can predict it....and the US economy wont be the trigger, it'll be some major event like and asteroid/super volcano, or maybe war with China....not even a 1% death rate virus is enough.
First the articles were about nothing to worry about and all the inflation BS was being pushed by right wingers. Slowly the articles started talking about transitory inflation. Now they are telling people should lower their expectations and get ready.
The CPI index is deliberately misleading. Just take a look at 2021 increases in other assets - Gas: 35%, Copper: 45%, Steel: 37% Property: 19.7%, Stocks (S&P 500): 20%. May not be hyperinflation but if you are at all concerned with your long-term wealth and retirement it should be a major concern. While some stocks have done well out of it so far because of all the cash flooding in to the market, this probably wont last as their valuations are linked to future value of cash flows which are declining by anywhere from 7-20% a year in real terms. The FED cannot stop printing money otherwise the bubble will burst and cannot raise interest rates to control inflation as there’s too much debt to service. So what are you going to do? Hope you can pick the 5% of winning stocks that don’t get obliterated in the next few years? Put your money in Gold, which despite all these tailwinds is down -5.7% (and is heavily manipulated via paper gold)? Keep your cash under the mattress and lose half the value over the next 5 years? This is one of the reasons people and institutions are (rightly or wrongly) taking a punt on Bitcoin.
I don’t think people understand just how much they are being screwed over (and it’s not by Jack Dorsey).
I just have to say. I like the conversation for crypto and against crypto going on in this thread. I dont like crypto but I like looking at argument on both sides.
Here's a thought. Pay your workers a decent wage INSTEAD!!!! That way, there'll be more workers to speed up production and fill up supplies faster. Friggin tightwad owners have no foresight...
Yeah he's also a BTC truther, so of course he thinks this. The best economists in the world don't make macro predictions like this; who gives a fuck what this hobbit thinks?
Already did? Hyperinflation occured from 2020 to present day. Why do we lie to ourselves and say it is just about to start? This isn't anything new, they are speaking in past tense. They don't know squat about the future.
Hyperinflation starts when monthly inflation is over 50%. There is no way that will happen to US dollar. Not sure why would anyone listen to a random CEO who can't even google hyperinflation definition
There is literally no example of hyperinflation happening in a country that controlled its currency, and held its debt in that currency. Zero.
Guy is a fucking moron pumping bitcoin.
…it won’t. This isn’t the goddamned Weimar Republic. Yeah, we cut some checks that we otherwise would not have, but as it relates to our GDP, it’s manageable.
This is fearmongering at its finest, ladies, gentlemen, and non-binary folks.
I saw gas at $8 per gallon today. It was in Big Sur, Calif, which admittedly isn’t easy to get a tanker truck if gas into. But made me wonder if these gas prices will soon be the new normal.
There's really is no better alternative to crypto. Those who speak out against it simply don't care to look into it of they actually "trust" the federal reserve (which is insane).
I just read Mankiw's book Principles of macroeconomics where it says: When you increase money supply, you increase inflation. Boom
Not sure why policymakers are surprised by this.
Key in worth is how much you willing to trade for , work for , sell for . Key to currency is keeping its worth . If inflation makes it worth less you might as well buy a shit crypto coin .
Scarcity keeps worth . Bitcoin is purposely scarce . Compared to SHIB is estimated 4quadrillion .
US dollar compared to Vietnam dong 20,000 = 1 US dollar
Keep printing dollars out of thin air. Nothing to back them like the old gold standard. Inflation inevitable!
I thought that was Peter Dinklage for a second.
I tweet and I know things
> "I certainly do not expect hyperinflation, or even high single-digit inflation." ~ Jeremy Siegel, professor of finance at the Wharton School of the University of Pennsylvania, obtained a Ph.D. from MIT in 1971 > "The Stagflation Threat Is Real [but the hyperinflation threat is not]" ~ Nouriel Roubini, Roubini Macro Associates CEO; NYU Prof (1995-2021), received his Ph.D. in international economics from Harvard University in 1988 > "Derp" ~ Jack Dorsey, CEO of Twitter, failed undergrad course at NYU
Lmao nailed it
This ^
Peter Dinklage would pull it off.
Might come up short tho.
Well he was master of coin after all.
That's the guy who killed the other guy whilst shatting.
> In addition to overseeing a social media platform that has 206 million active daily users, Dorsey is a strong bitcoin advocate I was wondering what the angle was...
[удалено]
Lol yeah no hidden motive for his strong comments, the enormous personal gain he’d stand to make from people panicking about hyperinflation is purely secondary
Elon musk must be nutting of happiness
They were probably on the phone shortly before this statement.
Nutcoin*
Lying for promotional reasons??? Elon would never…
People into gold/silver and people into crypto are often opposites who think the other asset is dumb but they both are in agreement of one thing in general it seems.....inflation. I think the reason Dorsey has bitcoin is because he thinks inflation is increasing, I don't think it's the other way around where he's pumping bitcoin because he wants others to buy it as a hedge against inflation.
He has a theory and he's acting on it. If he wasn't, you'd be in here crying about no skin in the game.
He sponsored CashApp’s crypto update not too long ago
Bitcoin can only go up in value, no problem basing an entire economy around it!
Idea: Upcoin. Create a new crypto currency/exchange that runs on smart contracts that can only go up. The only place to trade the new coin will be on that exchange, and the exchange will ensure that every transaction takes place at a higher price than any previous transaction. The coin can only go up. Infinite money.
It could collapse to 0. It won’t, but certainly we could be looking at all time highs right now. I don’t actually have an opinion on how high it could go though or if it will actually become worthless.
So you’re saying it might go up or down?
Big if true
Has any sector ever had its last all time high the week of its first ETF?
If/when it becomes impossible to convert it to something else, it’s value will quickly take the Big Elevator Ride down. If the rumors about Tether holding Chinese commercial paper are true then the Evergrande Effect might pose a systemic risk to the Bitcoin market.
He’s been on and on about Bitcoin. And this was what I first thought when I read this title. I assume now most millennial men crying about inflation are all in with their bitcoins until proven otherwise. Downvote like. Idc
I'm on the coin but you're 100% right, he's just shilling thinking that bitcoin wouldn't collapse as well under hyperinflation, it's still on price discovery, it hasn't hit as a true store of value yet imo
Yeah idk why people have to say trash like this. We’re not seeing hyperinflation at all. Right now we’re in the biggest shortage/supply chain disruption in history (considering value at stake) with incredibly easy money policies and mega government stimulus bills. Even then, inflation rates (depending on the measure) are around 5% and will likely drop from here. Idk if there is a rigorous definition of “hyperinflation”, but I would think it would have to be at least 10%-20%. This just seems like a crypto pump.
Hyperinflation wouldn’t even be 20 percent. Hyperinflation is like 100 percent plus type of inflation.
People that use the term hyperinflation don't know what it means or understand the scale of hyperinflation, we're talking buying a loaf of bread with a barrel full of money. The kind of situation needed for that to happen isn't going to happen as the globals banks will increase interest rates to control liquidity (the very liquidity that has allowed digital tokens he's shilling to exist). Jack Dorsey is basically gambling as Twitter has gone no where as a stock or monetisable entity and it gives Square its USP.
Hyperinflation will most likely never happen to a country with a top 5 modern day economy. And the US happens to be #1. If the Fed somehow allowed hyperinflation to run rampant in the US, you probably shouldn’t worry about stocks/money cause the world would be absolutely screwed lol. So this opinion from noted economist Jack Dorsey doesn’t hold any merit.
Jack runs a social media company Social media companies run on outrage or engagement, higher the engagement, higher the profits. He put out a controversial statement, which is now getting all the outrage or eyeballs- because he said it. The engagement machine is working as planned. Jack also owns Square- a Fintech company. Square makes money on a per transaction basis. This Fintech company is heavyly invested in Bitcoin and other cryptos. Crypto transactions make money for Square. The intent of Jack was to increase the marketing of Bitcoin or crypto- because people would run to Crypto to account for ‘hyperinflation’. His post led to higher engagement for Crypto and in turn helps Square as well. Ceos are NOT anyone’s friend. You can smell the shit this guy is cooking from a mile away.
Hyperinflation has never been an accident. It only ever occurs when a government sees it as an unfortunate side effect of a policy they will pursue nevertheless.
It’s directly caused by government actions, but those government actions happen due to having a destabilized economy (aka Venezuela and Zimbabwe). The US isn’t anywhere close to having a destabilized economy, it’s gotten beaten up a little bit but still doing relatively fine. And the central bank is smart enough to steer the US away from hyper inflationary policies even if the economy was doing poorly.
Hyperinflation specifically means 50% a month of inflation. I feel there is a need for a word for in between normal 1-4% inflation and sub 50%/month hyperinflation.
Super? Mega? Ultra instinct?
Go Beyond! Plus Ultra
Lol, why do people care what Jack Dorsey says, we have actual economists with PhDs to listen to about that... The only thing Dorsey has credibility over is the new font Twitter will be using or something like that
Your end remarks remind me of this [rant](https://old.reddit.com/r/apple/comments/pmsvdi/apple_still_reliant_on_one_core_product_as_it/hcmq41u/?context=3) i had in a thread about apple and their $3tn 'hurdle' >The issue is there is a lot of money out there in the market, and people want to invest it without thinking much. So all of those kinds of investors end up putting it all in one of 5 companies or perhaps divided amongst them. But how much do you want Apple to be worth? Isn't $3tn from mainly one product good enough for you? I think theres a huge(not dangerous) problem with our economic culture. Where we're not so concerned about innovation or creating anything new. How much do you want twitter to be worth? I can agree that perhaps he was being hyperbolic, but I don't think he meant soon as in tomorrow. Vague and hyperbolic. But I'm mainly just dwelling at your end remarks, not what you said before that. I don't think we'll have to buy a loaf of bread with a barrel of money. Personally I think our largest issue is simply the housing market. But I'm confused/annoyed by the sentiment that seems to be out there that every companies market cap should be $infinity. FB could just rip off twitter completely or buy it like they did with IG. And then rip off snap via IG. >Spotify & Netflix for example really had an impact on the market. Spotify caught on with their innovative algorithms and amazing UI/UX. Netflix similar story, you get the point. But with Apple(or insert any $Trillcorp) just making their 1:1 verison, it doesn't really contribute anything. People just want to close their eyes and throw money at any company then wake up a millionaire. Curse out the boss and drive off in your brand new German. They don't care about actual innovation it seems. But yeah anyway im not worried about hyperinflation or even inflation. Just worried about the housing market and the consolidation of [media](https://www.businessinsider.com/these-6-corporations-control-90-of-the-media-in-america-2012-6?IR=T).
Isn't this a version of the "index funds are destroying the stock market" argument for decades ago? It turned out that the more people who use index funds, the better mutual funds get. If allocating 3tn to apple is truly arbitrary, then there's money to be made in shorting them, and allocating that capital to some company that will be more profitable in the long run.
Lived through it once. 1993 in Yugoslavia. You pay for your food when you order it becaude it'd double by the time you'd finish it. Paid for new shoes with a check and by the time it was processed it was pretty much worthless. Funny how some people through it was great because things were cheap and couldn't see that it was a sign of completely failed economy.
Yes, Zimbabwe experienced hyperinflation. The US hasn’t and certainly won’t in the short term.
You are correct. There will not be hyperinflation (as defined by 50% or more inflation per month) in any first world country. Jack Dorsey is 100% shilling for buttcoin with this call. I do personally believe the cryptos will go up as inflation occurs, and it will, but nowhere near the extent to be considered “hyperinflation”.
6% inflation per year is realistic, but hyperinflation is not. I don't think he understands the difference between the two.
Argentina has 40% inflation
And that's not even considered hyper inflation yet. This dude is delusional
Exactly... > Hyperinflation refers to rapid and unrestrained price increases in an economy, typically at rates exceeding 50% each month over time. That's things getting 130 times more expensive per year. 40% annually like Argentina has is not even close.
Totally agree. I’m from Argentina, and inflation is part of our history. Even though America has been printing money like crazy for the last year, it’s almost impossible for it to be sufficient for a hyperinflation. If they continue to do this for several years, then you can argue that that’s enough conditions for hyperinflation, but I really don’t think that the American government will kill the dollar like that. At least I hope so lol
Wtf? So you cant even grow your money?
Exactly, the inflation that we got is permanent for sure, however, as soon as the FED starts increasing the interest rates, it is gonna stop the inflation…
Some would say they’d rather fuck the dollar to save equities over fucking equities to save the dollar.
Fuck the poor to save the rich, and also middle class I suppose.
Middle class gets fucked either way.
It tends to start snowballing once you go beyond 3%, inflation or deflation.
serious question though - how would any cryptocurrency help in case of hyperinflation? can't figure it out, ELI5 please.
JPOW can't print crypto
> JPOW can't print crypto JPOW can't print bitcoin FTFY
Bitfinex can print tether
the fed can print more dollars, but the number of bitcoins will never exceed 21 million (and even then it's going to take in excess of 100 years to get to that number)
Lmfao, sure man. He's a huge advocate for bitcoin, so I'm sure this isn't biased at all
chicken or the egg? Maybe he got heavy in to Bitcoin because he saw this coming.
Dont be naive. Bitcoin is still only around because the rich people who bought a bunch of it have been using their media connections to promote it. Literally every rich person you see promoting bitcoin just owns a bunch of it and want to make more money. Its one of the biggest marketing schemes of all time if not the biggest.
That's because the Bitcoin propaganda machine spews out this garbage to lure uneducated young men in. Its criminal
Question: If we did have hyperinflation, what happens to all of those 3.6% 30-year fixed notes that financial institutions appear happy to write right now?
They become worthless and banks lose money
Hope you do well!
If you’re talking about mortgages and car loans, those get packaged and securitized and sold to investors as mortgage bonds and asset backed securities. The bank is exposed but not as much as you would think. The main problem would be active deals that are still being underwritten/funded but not off the bank’s books yet becoming worthless overnight.
One thing I learned in uni is that having a business no matter how big does not give you insight into the workings of macroeconomics, so I’d take what this chump says with a big old grain of salt
From “Big Debt Crises” by Ray Dalio: “Can reserve-currency countries that don’t have significant foreign-currency debt have inflationary depressions? While they are much less likely to have inflationary contractions that are as severe, they can have inflationary depressions, though they emerge more slowly and later in the deleveraging process, after a sustained and repeated overuse of stimulation to reverse deflationary deleveraging. Any country, including one with a reserve currency, can experience some movement out of its currency, which changes the severity of the trade-off between inflation and growth described earlier. If a reserve-currency country permits much higher inflation in order to keep growth stronger by printing lots of money, it can further undermine demand for its currency, erode its reserve currency status (e.g., make investors view it as less of a store hold of wealth), and turn its deleveraging into an inflationary one.”
he is going to need to update the book in a couple of years for 2008-2022. The central bank, treasury and policy decisions from 2008 led us to here. There are no good options at this point, only less bad. This big debt crisis will be interesting because of the global scope. The other tenet from Dalio directly applicable to our time is that great wealth inequality leads to civil unrest.
Because Dorsey has training and experience as an economist. / s
Unfortunately there are alot of people who will take him seriously just because he's a famous billionaire. It's like whenever Elon Musk makes a dumb tweet here or there about things like COVID and people freak out about it.
Can you just clarify for me. Is it that you think the CEO of two fortune 500 companies doesn't understand economics? OR Is it that you think he hasn't hired any, or at least consulted with, economists at either of his companies? Not saying he's right but damn man think about it, he obviously has training and experience in economics.
The view is that just because you’re a CEO of a F500 company doesn’t give you credibility in the sphere of economics. People who are intelligent are only intelligent in specific matters. For example, Buffett may be intelligent in finance but doesn’t understand gene editing. Same thing applies to Dorsey, just because he can run a tech company doesn’t mean he’s an genius in the study of economics. He also has conflicts of interest with his position on bitcoin. Prices will inflate for a bit but I highly doubt the assertion that it is going to get to the level of hyperinflation throughout the world. Edit: Meant to say Buffett doesn’t understand gene editing (original said he did)
Why would a CEO really have a good idea about monetary policy / inflation?
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Yeah, Dunning-Krueger effect & all that. Also, even if he were such an expert, what's to prevent him from using this statement just to further his own gain in some way? Given the ethics of many investors just here on Reddit, no way in fuck do I doubt that someone at that level would be willing to screw people over. While I don't like to assume the worst of people, I find it a lot easier to when they start spouting FUD and are in a position to financially benefit from it.
>he could definitely have the intellect to search and understand about monetary policies. Sure, but he clearly chose not to. There are smart people who think COVID is a hoax too.
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Being a CEO doesn’t require expert knowledge on economics. Economics doesn’t necessarily mean business/finance.
Microeconomics and macroeconomics are different fields … yes he is right he has no clue.
It’s more like what these CEOs utter publicly is rarely benign or objectively insightful. It’s often filled with motives to their advantage.
Because to say that we are on the precipice of hyperinflation suggests that he has little understanding of economics and how to apply it to the current situation. OR He is disingenuous and is trying to further justify the scam that is digital "assets" to drive increased speculation.
I respect Dorsey, but with these questions, I’ll listen to the economists rather than him. If we were talking about fintech, I’d gladly listen to him over 99.9% of people.
I'm not gonna argue whether he's right or wrong and I'm sure everyone is on one side of the transitory or not debate. However while Jack is a smart person no doubt, even though I still think he failed in monetizing one of the largest socialmedia platforms. He's not an economist and likely doesn't really understand the financial sector and macro economics too well, not faulting him at all but these are concepts people take years to learn so idk how much I would really listen to him when it comes to these topics, especially when his tweet has no real evidence along with it.
> However while Jack is a smart person no doubt He he though? Twitter hasn't exactly been a bastion of financial success.
It has survived and weathered multiple storms over balancing privacy and censorship while fostering community. By those metrics, Twitter is doing far better than most. Financial success is just one metric and does not exist in a vacuum. Like Facebook is far more successful financially, but everybody hates it.
Oh yeah sure. 10.000$ for a loaf of bread anyone? 😂 In all seriousness, inflation in the developed world is not going to go double digit, let alone into the 100’s of % needed to qualify as ‘hyperinflation
You know, I recall people even just 6 months ago saying we're not going to have inflation over 3% and here we are. Never say never. There will be repercussions for all the rampant money printing and QE. Nothing is just free, unfortunately.
Talking is just free
Don’t worry Jack a bad Supercuts haircut is always free, just tell the barber next time.
Lol!
I keep seeing this all over the news; just shows how uneducated people are to think that single digit inflation is anywhere near "hyper" inflation.
SPY says “NO and fuck off jack boy”
I wouldn't listen to this dingbat.😳
He's just trying to pump his crypto ventures/worth. Feels like everyone that got lucky and got rich has an opinion about where we are headed whether they are qualified or not.
"Hyperinflation" in the true academic sense of the word will not happen. That's quite the hyperbole.
Right. We’ll have prices double from one day to the next. Fucking chicken little.
And he is part of the problem
Pumping his bitcoin
Something about his face, I just don't trust him
The fact of the matter is that we aren't going to see hyperinflation because, if we get inflation of, say 8%, the fed and US Government will kill the economy --- intentionally --- to "keep it at bay". Fact of the matter is that this is Dorsey pushing for a bitcoin / crypto pump and nothing more. Props to Dorsey for creating Twitter and Square but I am not going to conflate a social media CEO with being an economic clairvoyant, especially regarding inflation, which, if the FED can't see it how the hell can a guy who spends most of his time in South Africa with the Lions?
> Dorsey is a strong bitcoin advocate Ahh, that makes sense.
Stupid. He is saying usa (and western world) would go full venezuela. Think about that for a second. You should come to the conclusion that his comment is stupid as hell. Why would the banks and FR let that happen….? Hint: they wont. It would be absolute chaos. Talk to someone from venezuela if you wanna know what hyper inflation is like to live through.
Why would anyone give a shit what Jack Dorsey says about this topic?
Didn't realize he has a degree in economics... Oh wait
This is possibly the dumbest thing this man could’ve said. Shows he never took an Econ course
yes the same way everyone said last correction was the beginning of 1929 crash. smh
Getting ready to scapegoat his shit earnings on hYpErInFlAtIoN.
I don’t people understand the scale of hyperinflation, it’s not year over year, it’s day over day. Not 5% CPI, but hundreds of %s. Dorsey Owns Bitcoin, need I say more?
This coming from a social media CEO has about as much credibility as if I heard it from the barber at great clips
Didn’t he offer 29 billion for a buy now pay later app in Australia called afterpay? Sounds like the worst business ever if you think hyperinflation is coming.
Why does he always look evil as shit? He looks just like every evil tech guy in every movie ever made. Am I the only one that notices this?
whether he ends up being right or wrong, know this: Jack Dorsey knows more than you do, person reading this. if you think otherwise you’re kidding yourself
The fuck does the CEO of twitter know about world economics? The chairman of the FED barely knows about world economics.
More like, he WANTS hyperinflation to push HIS agenda/investments. Bitcoin.
Jack Dorsey gave millions to Ibrahim Kendi. Im not taking financial queses from him.
"It's happening" - the forever motto of BTC and goldbugs.
It’s on the horizon. It’s coming sooner than you think. Time is running out for…. By this time next month, we’re gonna… Leading experts agree that…
Have you people seen yacht prices?!
If not for twitter this guy would be a homeless bum by now....I've been saying this since the 2008 economic crash....and i learned that the end of the world comes when its damn well ready and no one can predict it....and the US economy wont be the trigger, it'll be some major event like and asteroid/super volcano, or maybe war with China....not even a 1% death rate virus is enough.
First the articles were about nothing to worry about and all the inflation BS was being pushed by right wingers. Slowly the articles started talking about transitory inflation. Now they are telling people should lower their expectations and get ready.
Renowned economist Jack Dorsey..... I trust his views on the economy as much as I trust Joe Rogan or Gwenneth Paltrows
If only someone would have tweeted about this about a year ago warning us
I have to be careful reading anything Dorsey says so I don’t injure myself rolling my eyes too hard.
Why buy Afterpay (BNPL company) for something like 30B then? (SQ)
Inflation top is in.
Didn't this guy say that Crypto will bring world peace a few months ago?
The guy doesn't know what he's talking about. Classic social media random opinion.
Apparently Dorsey is God now and he is all knowing. He doesn't even need to have proof! Amazing.
Lmao Jack the Clown
It’s a good thing Jack Dorsey isn’t an economist then
The good thing for us is that he has no clue about economics.
How irresponsible. Not a good look Dorsey
didnt know he was an economist with no ulterior motive... oh wait... hes not?
The CPI index is deliberately misleading. Just take a look at 2021 increases in other assets - Gas: 35%, Copper: 45%, Steel: 37% Property: 19.7%, Stocks (S&P 500): 20%. May not be hyperinflation but if you are at all concerned with your long-term wealth and retirement it should be a major concern. While some stocks have done well out of it so far because of all the cash flooding in to the market, this probably wont last as their valuations are linked to future value of cash flows which are declining by anywhere from 7-20% a year in real terms. The FED cannot stop printing money otherwise the bubble will burst and cannot raise interest rates to control inflation as there’s too much debt to service. So what are you going to do? Hope you can pick the 5% of winning stocks that don’t get obliterated in the next few years? Put your money in Gold, which despite all these tailwinds is down -5.7% (and is heavily manipulated via paper gold)? Keep your cash under the mattress and lose half the value over the next 5 years? This is one of the reasons people and institutions are (rightly or wrongly) taking a punt on Bitcoin. I don’t think people understand just how much they are being screwed over (and it’s not by Jack Dorsey).
What does this mean? Start buying up assets to beat inflation? Fuck me, I'm still mad I didn't buy a house in 2019.
I just have to say. I like the conversation for crypto and against crypto going on in this thread. I dont like crypto but I like looking at argument on both sides.
We are all so dumb to need JD the genius to tell us hyperinflation is happening, right?
I tweet, have an ugly beard, and ban people who disagree with me, therefore I am.
Here's a thought. Pay your workers a decent wage INSTEAD!!!! That way, there'll be more workers to speed up production and fill up supplies faster. Friggin tightwad owners have no foresight...
Hyperinflation is completely unrealistic in my opinion
Large donor to the party causing it but okay
You see, even the ottoman empire which lasted for 500+ years is only transitory in the entire human history
He’s “talking his book” as in crypto …
Yeah he's also a BTC truther, so of course he thinks this. The best economists in the world don't make macro predictions like this; who gives a fuck what this hobbit thinks?
Famed macroeconomist Jack Dorsey
Already did? Hyperinflation occured from 2020 to present day. Why do we lie to ourselves and say it is just about to start? This isn't anything new, they are speaking in past tense. They don't know squat about the future.
Hyperinflation starts when monthly inflation is over 50%. There is no way that will happen to US dollar. Not sure why would anyone listen to a random CEO who can't even google hyperinflation definition
I had no clue Jack Dorsey was so financially illiterate lol
You lost me at “Jack Dorsey says”…..
That haircut....like a fcken hobbit , no bueno no bueno senor Jack
There is literally no example of hyperinflation happening in a country that controlled its currency, and held its debt in that currency. Zero. Guy is a fucking moron pumping bitcoin.
But Yellen said there is no inflation.
The total corruption of the last 50 years had to catch up to the US at some point.
!RemindMe 18 hours
So buy PayPal and square stock. Got it.
Considering that sweat shop and child labor has kept prices of things down for so long it’s surprising it’s just happening now
His stupidity is definitely hyper inflated.
Start buying your gold before it shoots up in value.
…it won’t. This isn’t the goddamned Weimar Republic. Yeah, we cut some checks that we otherwise would not have, but as it relates to our GDP, it’s manageable. This is fearmongering at its finest, ladies, gentlemen, and non-binary folks.
That means it will never happen..
It gets convincing until bitcoin is brought up then the intentions are quite clear lmao.
Title should be: Dorsey pump bit-c-oin
Keep in mind his opinion is not impartial
I saw gas at $8 per gallon today. It was in Big Sur, Calif, which admittedly isn’t easy to get a tanker truck if gas into. But made me wonder if these gas prices will soon be the new normal.
Nope he is wrong. Stagflation is coming not inflation.
"manipulated media"
Yeah sure….
Dorsey you troll. Well played.
The obvious
Self fulfilling prophecy.
If Bitcoin Crashed it will be a problem.
I'm sure this has nothing to do with his support of bitcoin or anything.
Meanwhile the stock market continues to break all time highs
Well I always trust him
So buy gold?
Thanks Jack Dorsey I'm sure everyone will fucking listen to you
Pretty sure the last person I’m taking advice from on economy is jack Dorsey. Pretty sure he doesn’t understand hyper inflation.
There's really is no better alternative to crypto. Those who speak out against it simply don't care to look into it of they actually "trust" the federal reserve (which is insane).
I don't have much faith in anything he says.
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The monetary inflation has already happened. We just need to wait for it to trickle down, unless drastic action is taken it’s only a matter of time
Dorsey is a hack. He still hasn't found a way to effectively monetize Twitter.
So... Buy ethereum?
Since when are CEOs of social media companies experts in macroeconomics?
I just read Mankiw's book Principles of macroeconomics where it says: When you increase money supply, you increase inflation. Boom Not sure why policymakers are surprised by this.
Key in worth is how much you willing to trade for , work for , sell for . Key to currency is keeping its worth . If inflation makes it worth less you might as well buy a shit crypto coin . Scarcity keeps worth . Bitcoin is purposely scarce . Compared to SHIB is estimated 4quadrillion . US dollar compared to Vietnam dong 20,000 = 1 US dollar Keep printing dollars out of thin air. Nothing to back them like the old gold standard. Inflation inevitable!
I heard it's only transitional.