HELOC for Eggs & Gas?

[NPT]

The US Treasury and the Federal Reserve banks, with the implicit backing of the productive output of the US economy.

In a theoretical sense, the Fed will peg the money supply and overnight rates rational to the growth of output within the target inflation rate.

In a practical sense, they've not been responsible stewards of the greenback -- especially since that pivotal date in August 1971. Money supply growth has outpaced output growth -- largely as a means of financing federal overspending. And that looks to be accelerating rather than decelerating.

So I totally get why people seek refuge in other fungible stores of value. Still, Buffett was spot on about the fundamental flaw of cryptocurrency.

Interesting discussion.....'
Of course there are lots of things in this world that is worth a lot of money but in a sense are worthless. People will pay millions for a few selected baseball cards. I could never ever be much of a trader in something like that because I couldn't pay huge dollars for a little piece of paper.

I'm not a bitcoin fan,per se, but I do believe it will go up in value in the future. There's quite a few places that will take bitcoins as payment. Some of the online places that sell gold will take crypto payments. I buy a gold coin from Costco ever so often..I think it will hole it's value.

 

[snarlcakes]

They’re actually trying to jump on the debt grenade. A lot of debt to refinance the next few years hence the desire to drive bond yields lower.

Pretty noble when you think about it. They talked about doing this first term.

Refinance U.S. Debt While Rates Are Low

Today’s historically low interest rates on government bonds, along with the flattening of the yield curve, offer Uncle Sam a once-in-a-lifetime opportunity to lower his interest expenses by trillions of dollars over the next three decades. The savings could be large enough to pay for the entire...

www.heritage.org

They want to refinance debt even if it means a stock market hit, bad headlines and possibly even recession.

Leftists will often derisively reference Trump’s “4D chess”, but the above scenario is the only one in which this administrations recent actions make sense.

I agree and mentioned it in another post. They have 9-10 trillion to refinance this year (2 trillion in April). Getting inflation down is an added benefit that will help out everyone, especially working class people.

 

[snarlcakes]

In a practical sense, they've not been responsible stewards of the greenback -- especially since that pivotal date in August 1971. Money supply growth has outpaced output growth -- largely as a means of financing federal overspending. And that looks to be accelerating rather than decelerating.

That’s a feature of the system and why it’s doomed to fail. The system can’t survive if it doesn’t continue to increase exponentially. A deflationary system is superior and why Bitcoin will win.

 

[crazed_hoosier2]

Interesting discussion.....'
Of course there are lots of things in this world that is worth a lot of money but in a sense are worthless. People will pay millions for a few selected baseball cards. I could never ever be much of a trader in something like that because I couldn't pay huge dollars for a little piece of paper.

I'm not a bitcoin fan,per se, but I do believe it will go up in value in the future. There's quite a few places that will take bitcoins as payment. Some of the online places that sell gold will take crypto payments. I buy a gold coin from Costco ever so often..I think it will hole it's value.

Buffett, in his comment, cited rare works of art. And I get what you're saying: there have always been things that carry value for reasons other than cashflow or the implicit backing of the output of an issuing economy. Still, even works of art have genuine utility. Millions of people pay to see art every day. And beyond that they've long been coveted.

Of course, it's not realistic that anybody could ever own all 21 million bitcoins. But his explanation is still instructive. If somebody were to own all of them, they'd have to depend on demand to buy them back. And what would drive that demand?

 

[Bulk VanderHuge]

I had to chuckle at that since I remember all the 'Trump......., Trump....., Trump" the last 4 years.

Can't get anything past you, slick. No wonder you're a mod.

 

[Lucy01]

Are eggs what? A couple of dollars/dozen more that a couple of years ago? Does your family eat 4 egg omelettes for breakfast lunch and dinner? If so, you might check your cholesterol.

Are eggs what? A couple of dollars/dozen more that a couple of years ago? Does your family eat 4 egg omelettes for breakfast lunch and dinner? If so, you might check your cholesterol.

I just bought a carton of 18 eggs for $9.39 at public. No rationing..

 

[snarlcakes]

Of course, it's not realistic that anybody could ever own all 21 million bitcoins. But his explanation is still instructive. If somebody were to own all of them, they'd have to depend on demand to buy them back. And what would drive that demand?

What drives demand now?

 

[crazed_hoosier2]

What drives demand now?

The belief that somebody will pay you more for them in the future.

There’s even a name for it.

 

[snarlcakes]

The belief that somebody will pay you more for them in the future.

There’s even a name for it.

No, that’s what you think, which is the same error Buffett makes. Humans want to store their time in the hardest money or best assets. The demand for Bitcoin is many people believe it’s one of those things. It’s fine to think it’s not, but I think it’s foolish to not at least recognize why other people value it.

 

[Joe_Hoopsier]

$6 for 12 large eggs here.

If that's winning, I don't want to see what losing is really like.

The older chickens have been die off all alone and the young chickens have been ordered to stay in their houses, all alone. It's almost like a flu, epidemic.

There were even some purple chickens allowed to crash and grab local tractor supplies!

 

[mcmurtry66]

The older chickens have been die off all alone and the young chickens have been ordered to stay in their houses, all alone. It's almost like a flu, epidemic.

There were even some purple chickens allowed to crash and grab local tractor supplies!

Essential chickens

 

[crazed_hoosier2]

No, that’s what you think, which is the same error Buffett makes. Humans want to store their time in the hardest money or best assets. The demand for Bitcoin is many people believe it’s one of those things. It’s fine to think it’s not, but I think it’s foolish to not at least recognize why other people value it.

Warren Buffett is probably the single most successful investor in history.

You may disagree with his take - many people do (obviously). But to flatly state that he’s making an error about the nature of the value of an asset is like telling Michael Jordan that he has sloppy footwork on drives to the basket.

 

[snarlcakes]

Warren Buffett is probably the single most successful investor in history.

You may disagree with his take - many people do (obviously). But to flatly state that he’s making an error about the nature of the value of an asset is like telling Michael Jordan that he has sloppy footwork on drives to the basket.

The most successful investor in history has been wrong on the best trade in the world the last 15 years. The market is stating he’s made an error.

 

[NPT]

Warren Buffett is probably the single most successful investor in history.

You may disagree with his take - many people do (obviously). But to flatly state that he’s making an error about the nature of the value of an asset is like telling Michael Jordan that he has sloppy footwork on drives to the basket.

I wonder if he is the most successful investor. He's definitely been good. I remember Peter Lynch, that managed the Magellan Fund at Fidelity, was very successful also. I don't remember how long he managed it but not near as long as Buffet has been investing.

On another note I wonder how long it will be before the US has a digital coin. I see good and bad in it but I think it's eventually coming.