Posted on 09/30/2013 12:38:58 PM PDT by Kaslin
Default is soooo much better than hyperinflation. Default would likely cause a mega-credit deflation and a new Great Depression. I’d take that any day over what happened in Weimar Germany. Read about their hyperinflation—instead of their economy and society being devastated, it was completely nuked.
We could get both. In a hyperinflationary depression, the government would first try to inflate its way out of its debt, and then eventually have to give up. It would be god awful, and I don’t think it’s an out of the question possibility.
All it takes is short term thinking on the part of our politicians and bankers until events overwhelm them.
Dorothy hooked up with three men she didn’t know and took off for a place unknown to get someone to help her out of the situation she put herself in. Sounds like a democrat.
“Congress gave us a glimmer of hope after the House voted to audit the Fed”
you can’t “really” audit the fed. you can have some phony go thru the motions. the fed is controlled at levels that are not subject to any law.
the question you need to ask is “why wouldn’t it be”.
you think people like Michael Bloomberg, George soros, etc are just sitting around letting the stupid great unwashed rule themselves? look at the disdain that Bloomberg has for the masses, plus he, and the other billionares, were brought up to learn that the Christian majority should never hold power again.
Right! Because $800 in 1980 was the same as $255 in 1999.
Just saw the 3D version of the Wizard. That Scarecrow was packing heat.
We were in a deflationary spiral then?
I must have missed that one when my interest rates on my first home hit 15%.
“or”???
They thrive quite compatibly together.
Why does the author say “or”?
If you consider the crashing price of that metal to be a deflationary spiral, then sure.
If you were claiming the purchasing power of that ounce of gold was equivalent from 1980 to 1999, you're off by a bit.
“U.S. Default = WWIII”
BRING IT ON!!!!!
Ah, no. A deflationary spiral is an economy, not a single asset.
I keep forgetting how narrow minded people around here just to win an argument.
That's a relief. Glad you could answer your own question.
Hyperinflation in the Weimar Republic led to civil unrest and ultimately to WWII anyway. Perhaps the same cycle could repeat itself in the future.
You see, under a default the people who lent money to the US government get wiped out.
But under hyperinflation, everyone who holds US dollars could get wiped out whether they lent to the government or not. Paying back creditors with hyper-inflated dollars is essentially the same thing as a default and will anger both foreign creditors and domestic creditors anyway:
Thus although, a Default could theoretically lead to unrest and world war III, the same is true of hyperinflation. The real question is do you want lots of angry rich people/investors and foreign creditors or do you want everyone who holds dollars to be angry including the creditors?
Why not renounce the debt owed to the Federal Reserve? The feds digitize some more money, and say it's bonds owed to the Federal Reserve? I'm sure those mysterious shareholders will still be multi-billionaires without it.
That is why if one believes hyperinflation will happen it makes sense to get those long term purchases done before it happens. Car, appliances, new roof on the house, etc. The money's not collecting interest in the bank, and who totally trusts the banks with savings if things go crazy?
Yes, that will happen eventually.
Perhaps, but Weimar in 1923 was still a conquered nation with no control over fiscal policy.
That is far from the situation that the US confronts.
Why?
I'm sure those mysterious shareholders will still be multi-billionaires without it.
Mysterious shareholders?
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