Why did Austrian economists LIE about the nature of the economy, Sup Forums? Back in 2008/2009...

Why did Austrian economists LIE about the nature of the economy, Sup Forums? Back in 2008/2009, they claimed that quantitative easing by central banks would cause hyperinflation and a massive surge in the value of precious metals like gold and silver. A decade later, that hasn't happened. Why did they lie?

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fred.stlouisfed.org/series/WRESBAL
frbsf.org/education/publications/doctor-econ/2013/march/federal-reserve-interest-balances-reserves/
usawatchdog.com/inflation-is-theme-for-2018-gregory-mannarino/
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to trick boomers in to buying precious metals that they owned and sold

I was fooled by this, bought lots of silver but then I sold it for crypto and made a fortune which I am currently cashing out so thanks Schiff.

It wasn't just them, it was zerohedge spamming the shit every day.
It totally fucked up my stock picks because I was so negative

I hate you

Why?

Is Peter Schiff just the Ron Paul of economics?

Daily reminder that EVERY school of economics is Jewish except Keynesianism. Libertarians don’t give a shit about society if it interferes with their stubborn beliefs

sage
They are exactly right. We have seen inflation. It's just hidden in higher consumer prices. No one with assets in this country has gotten anything but poorer over the last decade in real terms.

>which I am currently cashing out
Which is the beginning of the end for BTC. You made a profit on it. The latecomers will be left holding the bag.

You cannot generate wealth by shuffling it around, retard.
Keynesianism is an absolute fucking laughingstock.

The Fed continued QE well into Obamas 2nd term, and kept interest rates at 0.

What Schiff predicted is still a problem, the Fed has just been able to keep the economy on life support for longer that expected.

There is still a problem we are going to have to deal with, we just have to hope that Trumps polocies can grow us out of the trouble.

Is 5 yo a reliable and stable customer tho?

ah yea, all the "tech" is too immature. I am surprised it has pumped to this state. I have been calling the top since 50bn mcap. Been a great ride but I have had enough of stress. Time to enjoy.

Because their economics is not scientific and is merely used as a justification for their libertarian political ideology.

because they're dumb and are ideologically against math. that's literally it, they're fucking stupid

>LIE
>LIE

>Daily reminder that EVERY school of economics is Jewish except Keynesianism.
This. Keynesianism is literally Aryan neo-mercantilism

I don't know whether they lied or just didn't know that. But QE didn't actually go into the circulation. It stayed in accounts held within Fed.
Banks only receive interest on it, because they complained they couldn't actually lend out the money.
fred.stlouisfed.org/series/WRESBAL
frbsf.org/education/publications/doctor-econ/2013/march/federal-reserve-interest-balances-reserves/

It’s a very sustainable system. All you have to do is keep push the debt back further generations and never pay it back fully as long as the minimum payments are made. You can literally have unlimited GDP growth from infrastructure spending and tax cut multipliers as long as you keep inflation in check

The infuriating thing is that I knew this was going on, and that the fed would stabilize things. Yet, I traded with full-on pessimism, obsessively followed Zerohedge, and lost many thousands of dollars that I made trading through 2007.

its a lesson mate. Dont let it cloud your future trades.

We do have massive inflation. People did buy a shit ton of previous medals and crypto coin. Real inflation been around 10% per year for the past 15 years.

The stock market looks totally different now. HFT made swing trading far more difficult, and most stocks have been stagnant for years, after the QE stabilized them. Playing SPY or APPL or AMZN with options is probably the only way to go for most people wanting to gamble

Most of QE money stays trapped in the market. Its one reason why stocks are massively overpriced.

There is definitely a bubble building.

The thing you have to do is play the market 1/2 get what you can out of it. But always keep another 1/2 positioned in contingency type positions.

The thing about precious metals is that you have to get in when most of the buying has ceased. The big players and government are going to be liquidating when all the small fish are in a buying frenzy. I hit the silver fury about halfway in, and kept holding at the peak when I should have sold, and even bought more at about 30, ended up breaking even because the govt came in and decreased demand for certificates, putting a strain on physical.

Bitcoin looks like a good hedge on the dollar right now. I have my fingers crossed that they will find a way to make it easier to monetize.

I can't believe someone could be this stupid.
Do you know what the interest payments on our debt is? Just the interest? Do you know what fiat currency does to the government and how many programs it creates? Have you not seen the economic stratification in our society get worse and worse? Have you not seen decades of boom-bust cycles caused by intervention? Fucking kill yourself.

>All you have to do is keep push the debt back further generations and never pay it back fully as long as the minimum payments are made.
Then you'll have to keep the rates ultra low. Otherwise you won't be even able to pay interest. That's what EU and Japan is doing. ECB rate is literally zero and Japanese is even in negatives. Because their debt level is even higher than America's.
>you keep inflation in check
And how you are going to do it, when the main Central Bank's instrument against inflation is raising rates?

Because I guess they didn't predict that the market would be flooded with worthless gold IOUs that keeps the price down.

>Daily reminder that EVERY school of economics is Jewish except Keynesianism
>keynesianism: the belief than public spending fixes everything
your nose is showing

you should love crypto if youre a swing trader. Put a small punt in there.

Maybe change your trading strategy so?

no thanks I consider them a scam. I'd buy a meme coin for pennies though although I doubt I'd shill for them.. I'm sure there will be plenty of new offerings over time

isnt it kinda spooky how much money the ECB is injecting and how little inflation we have ?

Yeah but at this point I think it is fair to say that he grossly overestimated the problems caused by the FED in 08ff. So people can rightfully claim in my opinion that Schiff and the others were wrong.
I think all the austrian economics underestimated the compensatory effects of increasing productivity. For example:
>if you have 1% inflation and 1% more productivity the prices stay stabile ceteris paribus.

it is a scam but that doesnt mean you cant take advantage of that. I have made over 6m in crpyto in the last 12 months and I know full well its a total scam. You dont have to shill them.

>I don't know whether they lied or just didn't know that.

some actually said it will lead to hyperinflation if the amount of QE is realeased on the market

THIS.
My stupid uncle put his entire savings in gold coins.

I don't think he lied. I think that's really what he believed would happen. The Fed just has a better handle on it than he believed.

They didn't lie, it only made sense given the path the Obama administration was on. They got screwed because of Trump. Interest rates were essentially zero under the Obama administration while non-farm labour hours remained unchanged from 2008 to 2016, meaning that the economy wasn't improving despite massive amounts of debt and the cheapest loans in American history. Everytime there is a recession the response from the Fed is to lower interest rates, however with a stagnant economy, they never raised interest rates in order to make the Obama admin look as good as they could. If a crisis happened, they wouldn't be able to lower rates as they always do, the only response would be to print massive amounts of money, which would devalue the dollar, and thus drive up the value of metals. Add to this the fact that both parties were totally corrupt and pretty much had the same agenda, and they have a solid chance of being right. It only made sense, Trump was a wildcard and totally unpredictable.

yeah i believe this too. It fitted his narrative of the fed. Ive read several books on it and hes always worried about the size of money in circulation.

Hot damn you hit the jackpot

wow great idea! I wonder what we could call it?

What about 'diversification'? Sounds like a nice name.

with Germany 1923 in front of their eyes, they feared it could happen again. The 1923 hypierinflation was caused on purpose though, to impoverish the Germans and get rid of state debts.

calm down - I don't think gold will ever hit brown's bottom, unless we (re)enter depression

right place, right time.

the trick was to do it in January of this year.
They weren't wrong, it just hasn't come to fruition yet. If the Chinese are telling the truth about stopping purchase of US bonds and some alternative oil currencies come up, PMs will be your best bet.

QE didn't reached the consumer market it all went to the stock market. Inflation will come.
usawatchdog.com/inflation-is-theme-for-2018-gregory-mannarino/

Yeah they totally fucked us and fucked up. Bitcoin absorbed all the inflation pressure that gold should have got. The goldtards (and I am one of them pls kill me) megaphoned for gold, when only bitcoin should have been our focus.

FML.

wtf are you talking gold value skyrocketed in 2009-2011

No, I said most of QE (approximately 80%) were kept by banks as reserves within Fed. It's not in circulation and they can't lend it out. Banks are okay with it, because Fed pays them interest on their reserves since 2008.
Rest went into the stock bubble, yeah.

Weren't there a precious metal bubble in 2013?

It's resulted in a massive asset bubble..stock market.

Something nobody predicted is that while QE increased the money supply by a shitton, there was also a massive decrease in velocity of money (basically spending) which balanced out the inflationary effects and led to zero or negative inflation. Economists are still figuring some of this shit out, because it's not how the economy should naturally operate.

But, the hyper inflation did occur. Just consider how much food costs today compared to then.

They didn't lie. Their models were created by jews.

>hyper inflation occured
uhh, where? Food is cheaper than during the 140$ oil days. There's higher inflation in medicine and college tuition

I really don't think BTC increase has so much to do with inflation pressure. If this was the case more commodities would rise.

Because it doesn't take a rocket scientist to figure out that Austrian economics is pure shit

There is an asset bubble with the stock market, and there is another housing bubble no one is talking about yet. The next crash will be worse than great depression. No investment, no equity, no savings...basic markets will break down and the dollar will be displaced as the leasing world reserve currency. China wins with it's economic warfare plan since Nixon opened up relations.

medicine / college prices has nothing to do with inflation tho

Wrong. You just don't buy your own food.

Wow kraut

I'm surprised you can type with one hand fisting Merkels yeast infested snatch, and the other jerking of a Muslim while he's raping your wife

Turns out conventional wisdom regarding currency doesn't apply when the value is determined by the market instead of a finite resource.

>There is definitely a bubble building.

I mean, there COULD be, but if the "bubble" has been stable for almost a decade, it's actually more like a plateau than a traditional bubble. Traditional bubbles usually hit a logarithmic curve then suddenly "pop." The current equities rally has been more like a long, steady ramp.

...

There is inflation. Everything has gone up in price cause the dollar has lost value or purchasing power. If the economy wasn't rigged everything Peter has said would have happened. It still will and when it does the world will stand back and watch great Babylon collapse and be defeated without firing a single shot. China is already slowly getting ready to create a gold backed yuan. Also why did Russia recently show pics of their gold holdings? China will soon release pictures of their gold holdings as well. Tick toc.

I think perpetual debt and minimum payments on the debt is what's in the card for our future sadly. Slaves of the central bank yearning to be free. Don't hold your breath for change.

It‘s because those who know it’s a fraud (some millennials, some gen z and few gen x) don’t have enough money and can’t accumulate enough to ever be a danger to the system. Most boomers will believe their lies until the end and deep in some corner of their mind they know they have to. Gold and silver prices are manipulated, this is common knowledge. The property and renting prices are artificially inflated and kept stable with an ever increasing influx of third world people. Other countries have pulled their own scams too and can’t call out others. It’s not that that the Austrians are really wrong they just underestimated the short/medium term stability.

yeah hearing this stuff since 10 years. You know that people don't live forever right? That being said, I actually agree that someday shit is going to hit the fan, but it might take a couple of other decades until then. At what point would you agree that it was a mistake to take Schiff and his buying recommendations seriously? In 20 years maybe? (if you are still alive then)