{"id":53305,"date":"2020-05-15T08:13:50","date_gmt":"2020-05-15T13:13:50","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53305"},"modified":"2020-05-15T08:13:57","modified_gmt":"2020-05-15T13:13:57","slug":"how-to-maintain-a-bull-market-after-coronavirus","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53305","title":{"rendered":"How to Maintain a Bull Market After Coronavirus"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.cobdencentre.org\/2020\/05\/how-to-maintain-a-bull-market-after-coronavirus\/\">HOW TO MAINTAIN A BULL MARKET AFTER CORONAVIRUS<\/a><\/h3>\n\n\n\n<p>Everyone thinks they know the cause and effect of the Federal Reserve\u2019s response to crises such as 2008 and 2020. The Fed&nbsp;<em>prints money<\/em>&nbsp;to buy assets. This increases the quantity of&nbsp;<em>money<\/em>. And this causes prices to rise. The Fed wants this, because it thinks that&nbsp;<em>inflation<\/em>&nbsp;eases the burden on debtors. The mainstream wants this, because they have been brainwashed into thinking that&nbsp;<em>inflation<\/em>&nbsp;causes good effects such as employment. The critics decry this, because they see&nbsp;<em>inflation<\/em>&nbsp;as a tax.<\/p>\n\n\n\n<p>This view is not even wrong.<\/p>\n\n\n\n<p>The dollar is not&nbsp;<em>money<\/em>. It is just credit. And it\u2019s not&nbsp;<em>printed<\/em>. It\u2019s borrowed. An increase in the quantity of it does not necessarily cause commodity and consumer prices to rise. Just look at not one, but two drops in the price of oil. And not small drops, but epic collapses. Starting in June 2014, the price began to fall from $108. By January 2016, it had dropped to $26, a crash of 76%. Then it rose for a whole, hitting $77 by October 2018. It has been downward since then, to $66 this January, or -14%. It\u2019s now $25, which is a further loss of 62%. This is not counting the brief plunge to -$38 on April 20\u2014yes, those who had oil were obliged to pay someone to take it off their hands (thus debunking the notion that oil is like gold).<\/p>\n\n\n\n<p>In other words, this not-even-wrong theory predicts a didn\u2019t-even-happen price hike.<\/p>\n\n\n\n<p>When a bank, pension fund, or investor sells a bond to the Fed, they do not go out and buy consumer goods. They buy another asset. This is why the result is not rising consumer prices, but rising asset prices.<\/p>\n\n\n\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>HOW TO MAINTAIN A BULL MARKET AFTER CORONAVIRUS Everyone thinks they know the cause and effect of the Federal Reserve\u2019s response to crises such as 2008 and 2020. The Fed&nbsp;prints money&nbsp;to buy assets. This increases the quantity of&nbsp;money. And this causes prices to rise. The Fed wants this, because it thinks that&nbsp;inflation&nbsp;eases the burden on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5186,7380,28817,303,1849,7957],"class_list":["post-53305","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bull-market","tag-cobden-centre","tag-coronavirus","tag-fed","tag-financial-markets","tag-keith-weiner"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53305"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53305\/revisions"}],"predecessor-version":[{"id":53306,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53305\/revisions\/53306"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}