Is price hike on maverick going to happen ?

[sunismymed]

Here's another chart to get peoples attention as to how bad this can get. US Money Supply (M2 measurement):
https://fred.stlouisfed.org/series/M2NS#0

I haven't bought a new car for decades, but ordered the Maverick because I know dollars I've saved might not be worth 50 cents in a couple years. But when anyone says dollars, what are they really? They ain't printing much anymore. The proportion of paper money to the entire money supply is an inverse of that chart you showed us. What does it mean? What's the difference between crypto and an online bank statement? If Trudeau can empty his opponents bank accounts in a self declared emergency, why would anyone think one of our Presidents, bureaucrats or county clerks wont do the same when they can?

It's also nice to know that the gas mileage and ability to hold extra jerry cans in the bed can get the family somewhere else if the fan gets hit hard.

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[TooManyVehicles]

I haven't bought a new car for decades, but ordered the Maverick because I know dollars I've saved might not be worth 50 cents in a couple years. But when anyone says dollars, what are they really? They ain't printing much anymore. The proportion of paper money to the entire money supply is an inverse of that chart you showed us. What does it mean? What's the difference between crypto and an online bank statement? If Trudeau can empty his opponents bank accounts in a self declared emergency, why would anyone think one of our Presidents, bureaucrats or county clerks wont do the same when they can?

It's also nice to know that the gas mileage and ability to hold extra jerry cans in the bed can get the family somewhere else if the fan gets hit hard.

Definitions:
"money supply" isn't just printed $ (or Loonies for that matter).
M1 measures currency, demand deposits (checking accounts), other liquid deposits (e.g. savings, money market). M1 does not include things like Bonds. M1 was changed in 2020 to include savings accounts as they are now considered liquid.

M2 measures M1 + "near money". Near money is money markets, time deposits (e.g. CDs) etc. under $100K.

M3 Measures M2 + large time deposits, institutional money market funds, short term repurchase agreements (aka REPO's). The Federal Reserve stopped publishing M3 numbers in 2006.

Editorial:
The banking system (and more importantly most of our institutions) are built on trust. When you put money in a bank, you "trust" the "system" that your money will be protected (e.g. FDIC insurance) and that others may not have access to your money (at least without due process). That is why actions (such as we are seeing in Canada) are so dangerous. Once that trust is lost, watch out.

 

[sunismymed]

Editorial:
The banking system (and more importantly most of our institutions) are built on trust. When you put money in a bank, you "trust" the "system" that your money will be protected (e.g. FDIC insurance) and that others may not have access to your money (at least without due process). That is why actions (such as we are seeing in Canada) are so dangerous. Once that trust is lost, watch out.

Perhaps the most fundamental required trust, is the underlying value of the currency. The US used to have a 'gold standard', you could take a thousand dollars to a certain institution and have your dollars exchanged for a certain amount of gold. I believe it was Nixon who got US off the gold standard, and he literally told us that he was 'not a crook'.

The Feds are creating dollars out of thin air. Remember baseball cards, when all of a sudden there's a 100 Joe Shmoe's floating among your friends. That card becomes worthless.

How to get filthy rich? Well it's hard to pick winners in the stock market, and betting against a stock (going short) is very risky. But we all know that governments find it too tempting to resist printing a little currency now and then, so there is a downward (inflationary) bias. What is easier than trading stocks, more portable (can be moved around the world & taxing authorities) and without bearing Corporate risk is currency trading. That is how George Soros got his billions.

On a totally different topic: If you knew how to help bring about the collapse of a country: you could make a fortune trading its currency on its way down.

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