Dr Copper
Posted on 01/08/2015 9:23:42 PM PST by blam
Toby Conner
January 08, 2015
With commodities now moving down into their three year cycle low I’m hearing more and more talk about deflation. This is complete nonsense. Bernanke had it exactly right when he pointed out that any determined government could halt deflation at will with a printing press. As a matter of fact the only mildly deflationary event we’ve seen since 1932 was a brief period during 2008 and early 2009. Bernanke succeeded in stopping it in its tracks almost immediately with QE1.
In order to experience deflation there must be debt defaults. That’s what happened in 2008. Now however almost all of that impaired debt has been moved from the private sector onto government balance sheets. Unlike a homeowner, governments can print (counterfeit) money at will, so it is nominally impossible for a government that is able and willing to print unlimited liquidity to default on its debt. For any government with a printing press, deflation is a choice not an inevitability.
(snip)
(Excerpt) Read more at marketoracle.co.uk ...
No one has ever explained to me why a government can’t print its way out of deflation. That’s why I’ve never been overly concerned about it. I do worry about inflation on the other hand...
This man is insane.
If he doesn’t commit suicide on January 28, let’s see what he has to say the next day.
.
You can’t print your way out of deflation because nobody wants the $hit you print!
Come the end of this month, that sucking sound will be all the banks sucking up whatever gold they can find (some people will be foolish enough to sell theirs)
.
Dr Copper
The writer is an idiot. The government printing trillions is defaulting...paying back debt with worthless dollars or yen or other currency. How is that any different from someone/business declaring bankruptcy and paying off their debt ten or twenty cents to the dollar?
Is that supposed to be an example of deflation?
What about supply and demand?
What about the fact that copper has tripled over the last decade?
http://www.infomine.com/investment/metal-prices/copper/all/
Printing yourself out of deflation isn’t cost free.
It’s f’d up, but they’ve been doing it and will continue to do so.
That’s right, diminishing buying power, swelling up the SNAP card rolls, while placing private enterprise not on the receiving end of SNAP cards and government lobby, on tight margins.
Bookmark
What happens jan 28?
If printing more fiat currency can raise a country out of depression then Venezuela should be able to fix all its problems by running its printing presses.
The Fed meets to discuss the end of QE.
The end of the line is here.
QE is aiding and abetting Russia and China’s attempt to end the dollar’s ‘reserve’ status, and that will wipe out their little wonderful people club instantly.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.