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Expectations: everyone accounted for the full 21m. Some millions "lost" coming back to market mind make for (spread out) liquidity on exchanges but doesn't do anything for the stock... Was always there
Inflation is a matter of the usable supply.
Shipwrecks back in Spanish times were deflationary, even though the gold still existed.
Ok, would you say QE1 in 2008-2010 was similar not inflationary? (Since the new base money was trapped on the Fed balance sheet via IOERs)
Maybe in hindsight I would say that. I certainly didn't say that at the time.
Was that new base money unspendable (I know it was largely unspent)?
No, just no incentive to. High value on liquidity + safe Fed interest payments juicier than anything available elsewhere.
Covid is the nice counterpart: like then, QE 1 could have leaked into real economy, didn't.
That looks like hodled/lost coins to me
Ok, so it’s more like the way hoarding is deflationary.
Either way, I think it’s about supply in the normal economic sense rather than the stock sense.
Why isn’t that inflationary? It’s a direct expansion of the money supply.