Transitory? Temporary? What Happens When The COVID Stimulus Is Removed? GameStop, Bitcoin, Ethereum, Gold And M2 Money

Confounded Interest ^ | 12/16/2021 | Anthony B. Sanders

[Browns Ultra Fan]

I love how The Federal Reserve talking heads, the media, economists like Paul Krugman, all refer to inflation as “transitory” and excessive liquidity as “temporary.”

Let’s look at a variety of alternative investments to the S&P 500, GameStop, Bitcoin, Ethereum and Gold after The Federal Reserve’s and Federal government massive (over)reaction to COVID in early 2020. Gold is the first asset to surge after M2 Money surged, but has declined since. Game Stop had a big surge (likely due to positive vibes on Reddit), but has been volatile and generally falling since “The Surge.” Bitcoin had a delayed surge as did Ethereum. Despite fear about government regulation, Ethereum in particular remains elevated.

The “temporary” stimulus has resulted in the lowest M2 Money velocity in history. And we will have to see if the “temporary” excess liquidity in the financial system is truly temporary.

Here is a chart to show the “Stimulytpo” effect on commercial and industrial loans which surged (including PPP loans) but have simmered down to pre-COVID levels.

The earnings for GameStop were terrible (down 39.7% YoY). But at least Christmas season is upon us and maybe GameStop will surge with a good retail spending season.

But what happens to markets if the Federal government “stimulypto” is removed? If it ever is.

[Browns Ultra Fan]

If Biden announces a shutdown on Tuesday, all Fed bets are off.

[knarf]

BECAUSE OMICRON AND IT'S GATE ARE BUILT INTO THE INNOCULATION.

THAT'S WHY

[Renfrew]

“Let’s look at a variety of alternative investments to the S&P 500, GameStop, Bitcoin, Ethereum and Gold “

This is a pretty unsophisticated set of alternative investments. If your investment strategy is something that every high schooler knows about and understands, you are not someone I would trust for financial advice.

[Jumper]

The markets are controlled by the corporations aligned with the DNC and under the Intelligence Agencies. Most companies like Microsoft, Facebook, Twitter, etc., are either CIA programs directly or by proxy.

[Organic Panic]

Stack metal. I have 4000lbs of aluminum. Been sitting there since the democrat governor declared my business unessential 2 years ago. Aluminum prices up over 30% thanks to Chomo Joe. Just looked at gold and silver. They are low. Time to buy a few more pounds....If I had any cash that is. LETS GO BRANDON

[Georgia Girl 2]

I was hoping he would be resigning on Tuesday. 😆