Balaji Srinivasan
👤 SpeakerAppearances Over Time
Podcast Appearances
American Keynesianism has innovated on that.
Why?
Because they don't have to.
When the Fed wants to steal 10 percent of all property.
Right.
They just hit a button and they inflate the money supply.
And nobody feels it.
In fact, some people even think that they've gotten richer because their asset prices have gone up
Right.
Because their house price or their, you know, S&P or whatever has gone up in nominal terms.
But it's like, you know, let's say there were 10 units of stock and you had one and you had 10 percent.
OK, now another 90 units are issued and you get one.
Right.
So you went up nominally from one unit of stock to two units of stock, but you went down percentage wise from one.
one out of 10 to two out of 100, right?
So your nominal went up from one to two, but your percentage went down from 10% to 2%.
That's exactly what's happening with inflation.
People can understand it when it's dilution on a cap table, right?
Fine, okay, you're right, but...
I know what you mean.