MountainTracker
WKR
- Joined
- Mar 8, 2014
- Messages
- 876
That's pretty interesting, but some of those graphs seem to be in inflationary terms, obviously we could buy more pretzels with a dollar 50yrs ago compared to today. It's seems small percentage shifts in the dollar to other currency, say 5-10% really seems to impact how of money into our markets vs out to other markets abroad. On relative terms in the past 10 yrs, hasn't our dollar been stronger? Or at least part of the reason for the 10-14yr bull market?
As M2 supply increases the markets increase. Holding cash is a melting ice cube bc of the inflation. The only way to fight it is to get into things that increase in value as the M2 goes up, so you can keep pace or exceed inflation. If you look at charts of the M2 supply vs stock market you’ll see they follow each other.
The dollar is stronger for us because we are closer to the hose kicking out the dollars. Meaning we spending it first vs other nations who get well after the US has spent it and printed more.
Inflation has a major effect on the future value of a currency.
(There are other things that affect a currency. I’m just a normal guy who is always learning. So if there is more to why our currency isn’t going down in the future I’m willing to listen.)
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