REVscene Automotive Forum - View Single Post

trollface · 05-28-2021, 06:55 AM

"Inflation" if it does stay, is not 100% tied to printing money. Printing money creates liquidity, not demand.

Everyone is forgetting manufacturing, shipping etc was all screwed up by C19. Supply is down while demand stayed high if you look at consumer spending. Look at the top companies in SP500, they had amazing blowout quarters. There are a lot of ppl that did really well or was unaffected at all by C19.

You can't make sweeping macro level calls on the economy because Bananas went up 5 cents at Safeway. If dealers can't get new cars to sell, obvs used car prices trend up. That has nothing to do with printing money.

There is a massive pent-up demand waiting to be filled. Retailers can't get stock, the demand is still there. Walk into any computer store, gun store, bike store and ask them how they did last year. They were able to sell every single sku at full tilt, no discount, taking pre-orders deep into next year. Their only issue is getting enough stock, kinda like... lumber.

Printing money to create liquidity did not magically make the price of XYZ go up, there were a lot of factors at play here that we've never seen before.

USD is a complex one:
- Policy
- Growth
- Export prices
- Inflation

Source: Man with un-treated head injuries

05-28-2021, 06:55 AM	#39
trollface Rs has made me the man i am today! Join Date: Oct 2011 Location: Richmond Posts: 3,182 Thanked 4,289 Times in 1,182 Posts Failed 390 Times in 133 Posts	"Inflation" if it does stay, is not 100% tied to printing money. Printing money creates liquidity, not demand. Everyone is forgetting manufacturing, shipping etc was all screwed up by C19. Supply is down while demand stayed high if you look at consumer spending. Look at the top companies in SP500, they had amazing blowout quarters. There are a lot of ppl that did really well or was unaffected at all by C19. You can't make sweeping macro level calls on the economy because Bananas went up 5 cents at Safeway. If dealers can't get new cars to sell, obvs used car prices trend up. That has nothing to do with printing money. There is a massive pent-up demand waiting to be filled. Retailers can't get stock, the demand is still there. Walk into any computer store, gun store, bike store and ask them how they did last year. They were able to sell every single sku at full tilt, no discount, taking pre-orders deep into next year. Their only issue is getting enough stock, kinda like... lumber. Printing money to create liquidity did not magically make the price of XYZ go up, there were a lot of factors at play here that we've never seen before. USD is a complex one: - Policy - Growth - Export prices - Inflation Source: Man with un-treated head injuries Last edited by trollface; 05-28-2021 at 07:22 AM.