14-11-2019, 07:02 PM
My opinion is that if not for the VC money (funded by cheap money), massive inflation would have occurred.
Because of VC's banking, we have been enjoying cheaper products such as Grab, Spotify, ecommerce, cheap airline fees and the shale oil revolution. Most of these companies are burning cash and making losses. They have been financed by large swath of equity money. Examples such as The purchase of CapitaLand vouchers at 10% discount that is financed by e commerce, Grab offers you discount to paying your taxes, airline like scoots burn through millions in losses each year etc
In my view, once the easy money sauce stops, be prepared for massive inflation. A contrarian view that a loose monetary policy will stoke inflation.
Because of VC's banking, we have been enjoying cheaper products such as Grab, Spotify, ecommerce, cheap airline fees and the shale oil revolution. Most of these companies are burning cash and making losses. They have been financed by large swath of equity money. Examples such as The purchase of CapitaLand vouchers at 10% discount that is financed by e commerce, Grab offers you discount to paying your taxes, airline like scoots burn through millions in losses each year etc
In my view, once the easy money sauce stops, be prepared for massive inflation. A contrarian view that a loose monetary policy will stoke inflation.