Imagine you had a printing press in your basement. Now imagine that you printed out $1 million in brand new, crisp, $100 bills.
You head out to the grocery store for some milk and “The Fly” is behind the counter manning the register.
You put the milk on the counter and ask “how much, fine Sir?”
“The Fly” responds in a cryptic tone, “for you, $2,000.”
Confused by such an egregious price for a simple gallon of milk, you quiz the man behind the register, asking “why so much, for just simple gallon of cow piss?”
“The Fly” quickly responds “that’s the price, asshole. Take it or leave it.”
Knowing that you have the ability to make more money in your basement, you buy the milk and never think twice about it again. With your money, “The Fly” finishes building his space orbital cannon (SOC) and destroys 2/3rd’s of the western hemisphere with it.
Moral hazard.
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lmfao!
If I have my own printing press, I don’t give a fuck how much you charge!
Now what about ALJ and VXX?
Milk is for babies! ~ Arnold S.
Cow milk is for baby cows!
When you get older… You drink beer.
If I’m in a store and “Le Fly” is behind the register, I’m going back outside to “borrow” his time machine, pal.
OH….. that’s good. Very true. Unless he locked it up or something.
I might have it chained to a fire hydrant.
I might be sporting bolt cutters, pal.
I tend to think if I had a time machine I wouldn’t really have the same morals I have now. Afterall, if you can go back in time to undo all your wrongs and you can avoid getting caught by moving back and forth between times and go back before you did whatever you shouldn’t have done, it’s more like a lucid dream… or at least it would seem that way.
Unfettered from morals, you’d have more time to “lol,” pal.
Sir Fly has just crystalized this market action exactly! Sagely wisdom or time machine magic? Does it matter? Zero fear.
when does the hit fit the shan?
Now we know where you send most of your day.
I’d love to buy a small share of your Qwik-E Mart Dr. Fly.
Quite profitable and notorious for its high prices and the poor quality of its merchandise.
Come by. I have the highest prices in America.
U got lottery tickets and slurpees to? If I not I buy milk somewhere else.
Fly,
Thanks for buying tits load of VXX from me.
Sincerely (…and I do mean sincerely),
-Yours Treuly
“Yours Treuly”….as in Jason Treu?
love it! inflation lesson in a paragraph! I may use this to explain it to dense friends. The orbital cannon is the trick everyone misses, they don’t know there are winners in inflation.
Not really. You see, there’s no actual inflation and will hardly be as long as wages and unemployment are steady. However, we do have inflated equity prices…
Equity inflation is inflation. Home price inflation is inflation. You keep wages the same but you go from having a 5 year mortgage to a 30 year mortgage of course bringing 30 years worth of mortgage is going to inflate the price. Leverage=inflation… somewhere
for a given period of time. Of course if the money doesn’t move anywhere and debts are owned there is going to be deflationary esque problems too.
yes! Nice way to put it – leverage – larger forces of leverage at work, interesting. credit is more like printing money than people want to admit. i must smoke a cigar and contemplate this.
mostly speaking about the great way to *explain* it, especially to non financial people. I may modify this analogy a little but it’s a good way to get it across. as to current inflation i find it very interesting. you have a good point about wages and unemployment in re: to classic inflation. But credit has changed the game in a larger sense, it seems we have new forms of inflation everywhere. I think there is an entire book or PHD thesis in there..
There is a reason Jack Lalanne lived into his 90’s. He NEVER touch a drop of cow’s piss. It’s a fact.
Cow milk is for baby cows.
That is after the age of 15 or 16 or so.
Somebody’s making a festival of big dicked gains:
http://www.loneleeplanet.com/2010/10/top-10-japanese-penis-festival-souvenirs/
Good thing I am lactose intolerant.
Terrific anecdote.
My work 🙂 thanks for noticing…
Fuck milk though I drink fire
I think you’ve described why things cost so much in New York City.
However, this is typically not how inflation occurs… there need to be multiple competing actors with wads of cash competing for the same container of milk.
Inflation typically occurs when Pisces is in alignment with Taurus.
I disagree, inflation typically occurs when a large bodily mass conjuncts uranus and blows smoke up your butt
I bet the customer desperately needed that milk because he was mixing eggnog and salt like a fucking SWEET GENIUS.
why print, just loan yourself money, show your ballance to other people, loan it to them as they pay you back you just keep all of it.thats crazy talk….
(youngster struggling to absorb lesson) So, moral hazard is when you get killed due to lack of morals by those with SOCs? Moral hazard is when you get killed because you didn’t inflate faster than your neighbor? Moral hazard is when you get killed for having morals? Gosh, central bankers must be smart to figure this stuff out.
Moral is not to buy Accident or Health Insurance Industry. In big trouble… see prior Fly post.
This thing called “money” used to represent some kind of vague representation of what you contributed to the world, so what you got back from the world was approximately the same as what you contributed.
Between the obscene amounts that people in charge of corporations pay themselves, and the insane bonuses bankers feel entitled to, no wonder people have lost any sense of the true value of a dollar.
The heads of our central banks need to go out and earn an honest days pay for an honest days work before they make decisions affecting the dollar value of things.
The first thing they should do is to stop feeling they need to prop up the stock market.
after the price of milk crashes back to $3, we’ll spend 5 years talking about the “recovery” in milk prices, policy makers going to all kinds of trouble to jack it back up to $2,000.
Great tune.
So why argue with it? Why not just play along for the ride like Scott Bleier?
Stephen King’s 11/22/63 included a pretty smart depiction of what Time Machines can do.
Please be careful on your trips — don’t create too many butterfly effects.
someone watched kenny powers last night
Indeud.
“I guess we know now who is Goose”
Candlebox- fu**ing love this tune!
old skool
SHIT, this low of vix is going to suck me back into the options market and bring back the degenerate over leveraged option buyer gambler in me.
Shitty thing is the 30 day vol is low but further out and it’s not. So it’s not like I can lock in long term options at low volatility and plan on selling options against them on a VIX spike.
So I’m stuck buying OTM April strike and OTM weeklies like a degenerate. I feel like I’m back in a casino. AMZN 190 here we go!!!! NFLX 120! Dont forget some TZA 20s as a hedge!