Australia's largest stock trading and investment forum Australia's #1 stock forum

FMG

Click for more information

2.07%

$21.26 fortescue ltd

I guess you're right, it's not like iron ore hit...

First 42328 Last

Share
Profile

Follow
polarbear666

4,178 Posts.

2290

01/01/22

11:48

Post #: 58595984
Share

Originally posted by convexity: ↑

There are decades of data from Japan and over a decade of US and European data demonstrating that reserve banks cannot simply create inflation by printing money. Inflation maybe a more psychological, than a financially engineered beast.

Whilst the M1 money stock has increased, the velocity of that money stock has plummeted. Velocity of money is the speed at which money circulates in an economy:

What this basically means is money has been printed, but that money isn't been used or is not circulating through the economy.

To get inflation from printing money, this money needs to be utilised and go through the money multiplier process - this is a demand driven, not a money supply process. When this happens, there would be excess demand, a shortage of supply and therefore inflation.

The bottom line is, it's not as simple as saying money has been printed therefore commodity prices should increase.

Expand

I guess you're right, it's not like iron ore hit historic highs last year or the stock market is at nose bleed levels using the metrics dumb value investors like... *sarcasm*

Your posts are well written but wrong Vs reality IMO. The money does appear to be circulating into commodities and the bigger indexes.

FMG Price at posting: $19.21 Sentiment: Buy Disclosure: Held
9 Upvote

1 Great analysis

Reply

Top Stories

SBW

Shekel Brainweigh CEO Nir Leshem weighs in on AI adoption ahead of FY25

STX

Strike Energy secures $153 million for Perth Basin gas projects

AML

Cultural heritage agreement puts Walford Creek exploration back on the map

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

RDN

If you thought lithium was dead, think again. The Pilbara will be central to the next upswing

There are more pages in this discussion • 10,374 more messages in this thread...

First 42328 Last

Add FMG (ASX) to my watchlist

(20min delay)
Last $21.26		Change -0.450(2.07%)		Mkt cap ! $65.45B

Open	High	Low	Value	Volume
$21.70	$21.70	$21.02	$145.2M	6.814M

Buyers (Bids)

No.	Vol.	Price($)
1	9760	$21.26

Sellers (Offers)

Price($)	Vol.	No.
$21.27	7866	4

View Market Depth

No.	Vol.	Price($)
2	1000	21.250
4	12614	21.220
1	5000	21.210
1	132	21.190
2	37157	21.170

Price($)	Vol.	No.
21.270	2057	3
21.300	1000	1
21.320	13727	2
21.340	150	1
21.350	21030	5

Last trade - 16.10pm 24/06/2024 (20 minute delay)

FMG (ASX) Chart