[politicket]

Sigh...why do we keep having these talks about hyperinflation?

Please understand, the economy will implode - but it will be through the destruction of credit (money), and be DEFLATIONARY in nature.

US dollars will have more purchasing power - but people will hold a lot fewer of them.

[rjsimmon]

US dollars will have more purchasing power - but people will hold a lot fewer of them.

But the currency would be worthless as it is established on the good credit of the U.S., which no longer exists. Nothing less than tangible currency would be acceptable, which is gold, silver, platinum, anything of value to the traders.

[jjsheridan5]

You are right. But one thing to add: there will also be tremendous scarcity of some things. So there will also be some areas where money will have less purchasing power.

Another factor to consider is that while things like housing may become cheap, holding on to that house may become quite expensive. Expect property taxes to increase substantially, as governments attempt to squeeze whatever is left.

[Nuc1]

Curious about your rational. If you have the time a quick outline would be appreciated. Denninger has proven, I think, that almost all major banks are insolvent at the present time. Yet we continue to print money. Would not inflation be a more likely outcome?

[lucky american]

When Americans realize that their only tangible assets or “dollars” are only zeros on someones computer screen. Do you believe that will be deflationary?

If this government collapses, and people start taking their money out of their accounts, and find there is none. Do you really believe that will be deflationary?

Do you really believe that there are enough “dollars” to cover all of the money owed?