I understand this. I just do not understand how after years of QE we are not seeing inflation.
Can someone explain that to me as if I were stupid?
Been to the grocery market lately? Damn inflation is everywhere. Bought a box of crackers and found the package is smaller and yet it cost more than a year ago. Packages of potato chips are bloated with gas and the quantity of chips less. On and on. Where in the hell have you been?
The answer may be that “money” that is NOT in circulation does NOT effect prices. For example, $1000 buried in a can in my back yard doesn’t “compete” with money in the market to inflate the price of anything.
But....
If people start to think their fiat money is LOSING value, then that invisible, idle money will start to rush into the market to buy SOME commodity (ANY commodity?) to “preserve its value”.
I hope I can move fast enough when TSHTF.
The answer may be that “money” that is NOT in circulation does NOT effect prices. For example, $1000 buried in a can in my back yard doesn’t “compete” with money in the market to inflate the price of anything.
But....
If people start to think their fiat money is LOSING value, then that invisible, idle money will start to rush into the market to buy SOME commodity (ANY commodity?) to “preserve its value”.
I hope I can move fast enough when TSHTF.