Tags
The Investor's PodcastPreston PyshMichael SaylorMicroStrategyBitcoin
Date Consumed
January 28, 2021
Action
Count (Month)
16
Created
Jan 28, 2021 6:54 PM
Last Edited
May 3, 2021 4:33 PM
CPI is a useless measure of inflation as it does not include many types of assets important to households.
Best way to think about inflation: increase in cost of good that you want to consume, of which there will be several classes:
- Deflationary goods (electronic in nature, zero marginal cost / zero variable cost and infinitely scalable, hence deflationary since they only need to cover fixed costs then scale infinitely).
- Neutral goods
- Low inflation goods
- High inflation goods
Growth in M2 money supply likely most useful measure of inflation as it is the closest measure of available money pursuing purchases. Was 24% in 2020 (!). 5-year forward estimate is c. 15% (!).