Oddbean new post about login | logout The fiat money supply is steadily shrinking and dragging down the nominal Bitcoin price along with energy prices. https://image.nostr.build/29b2ba6d1b1b782e49fe804998237ece4ff083f698fa8d645ce3fe669f96b0ae.png
So they the print in reverse now ? 😂
A debt-based currency can't actually hyperinflate unless they untie it from the debt.
Wdym. The ECB can load up their balance sheet, and maybe their balance sheets will contain other things, not just sovereign debt.
I mean, they linked fiat to debt, after abandoning gold, because debt tends to cycle down under inflation and the resulting recession, as it's retired (because the debtor sells it below price or defaults). Debt has a tether to the real economy.
Hmmm... Yes, when debt maturing > debt issued it reduces money supply, usually happens during high rates / recessions. But inflation doesn't discourage new debt. And ecb can print money to buy bonds from the market, which isn't new debt.
