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rustcleanertoday at 7:32 PM2 repliesview on HN

I'm sure it applies to Xbox too, but I priced out today's PS to the PS1 and it closely follows the inflation rate that M2 has undergone.

M2 expansion is the prime driver of prices, after supply & demand. Normalize SPX, gold/silver, etc, to M2 and see that they all run in fairly horizontal channels. You can even see nominal GDP normalized to M2 having been flat initially and then transitioning into a downward sloped curve for the last few decades.

By normalizing, I mean [in TradingView] doing SYMBOL*23.16*10^12/M2SL (conceptually SYMBOL*M2SL[0]/M2SL). Most important items track close to M2's roughly 6.5%-7% annualized force of interest inflation rate (the quotient of the natural log of the ratio of price now to historical price, over the elapsed time between the prices).

7% inflation (FoI) -> wealth halflife of cash ≈ 10 years.


Replies

kiddicotoday at 7:35 PM

Reading this made me question my own mental stability.

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DarkmSparkstoday at 7:53 PM

Sounds about right.

"Prices double every 10 years" is a fairly standard economics benchmark.

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