Hey, great read as always. So insightful! I'd love to hear more about those systemic factors pushing markets into unatural configurations. Mindblowing.
I would say the most substantial market manipulation comes from institutional leverage and algorithmic trading. Both take the human element out of markets and subject actual participants to supply/demand factors that wouldn’t normally exist. If banks can pull billions out of thin air to catch bottoms and mark tops with ridiculously high volume trades then we hardly have a free market. Thanks for your comment!
The Triffin Paradox explains this dilemma. The privilege of having the reserve currency is that your inflation can be exported due to foreign demand for dollars. The detriment however, is that most of that demand comes in the form of debt. So yes, the hyperinflation is certainly delayed but the burden of debt is substantially higher and massive trade deficits are inevitable. Thank you for the comment.
Hey, great read as always. So insightful! I'd love to hear more about those systemic factors pushing markets into unatural configurations. Mindblowing.
I would say the most substantial market manipulation comes from institutional leverage and algorithmic trading. Both take the human element out of markets and subject actual participants to supply/demand factors that wouldn’t normally exist. If banks can pull billions out of thin air to catch bottoms and mark tops with ridiculously high volume trades then we hardly have a free market. Thanks for your comment!
The Triffin Paradox explains this dilemma. The privilege of having the reserve currency is that your inflation can be exported due to foreign demand for dollars. The detriment however, is that most of that demand comes in the form of debt. So yes, the hyperinflation is certainly delayed but the burden of debt is substantially higher and massive trade deficits are inevitable. Thank you for the comment.