Post
Topic
Board Economics
Re: Rate cuts money printing inflation
by
magneto
on 02/10/2019, 13:35:23 UTC
We all ready see this, prices specially Property rent and buy prices are going higher.


Do You think its coused by inflation? 


If so do you think the gold and btc Will be hedge?

I think the assets prices going up in Europe,  USA, Australia Central Banks just started money printing those 3  countries wich i mentioned above


As we Know in canada there is about to start Economic recessions If they dont start rate cuts like USA, EU, AU just did.


Uk Economic situation is 50/50 it can go down.

Do You personally feel that Fiat Currrency losing slowly puraching power? 

I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!! 

Rate cuts are intended to raise inflation towards the inflation target. That's literally what they are for.

I doubt that a single rate cut would have any real long term detriments. Nor is there really any reason to believe that inflation is caused by rate cuts alone - it can be related also to the velocity of money, the money supply, etc. (but of course, interest rates do play a big part).

In regardsr to your point about losing purchasing power, it's not really anything new. There is a reason why a savings account is not considered to be a good store of value, when it's denominated in fiat. When something doesn't have intrinsic value, it's bound to lose value in the long run (except in deflation).