Chapter
The Relationship between Money Supply Expansion and Investment Returns
26:50 - 36:11 (09:20)
This podcast discusses the fairness of making a 10% return on a billion dollar investment paying 3% interest, while the money supply expands at a rate of 7-10% a year. It highlights that investing in stocks with a 10% gain annually results in a 7% expansion of the money supply.
Clips
This podcast discusses the hidden inflation of the US dollar, which has been approximately 7% a year for the past century, though this figure is never acknowledged by government or conventional economists.
26:50 - 31:29 (04:38)
Summary
This podcast discusses the hidden inflation of the US dollar, which has been approximately 7% a year for the past century, though this figure is never acknowledged by government or conventional economists.
ChapterThe Relationship between Money Supply Expansion and Investment Returns
Episode#276 – Michael Saylor: Bitcoin, Inflation, and the Future of Money
PodcastLex Fridman Podcast
The S&P index returned about 10%, but the money supply expands at 7% a year, and the economy generally grows at a rate of 2-3% per year.
31:29 - 32:56 (01:27)
Summary
The S&P index returned about 10%, but the money supply expands at 7% a year, and the economy generally grows at a rate of 2-3% per year. This means that investors who believe they are getting a 10% return are actually only gaining 2-3% at best, once inflation and economic growth are factored in.
ChapterThe Relationship between Money Supply Expansion and Investment Returns
Episode#276 – Michael Saylor: Bitcoin, Inflation, and the Future of Money
PodcastLex Fridman Podcast
The expansion of the money supply can affect the prices of assets, causing them to appreciate in value proportional to the increase of the money supply.
32:56 - 36:11 (03:14)
Summary
The expansion of the money supply can affect the prices of assets, causing them to appreciate in value proportional to the increase of the money supply. This can result in potential unfair returns for investors with large sums of borrowed money at low interest rates.