Posted on 02/15/2009 7:10:51 PM PST by sickoflibs
FWIW, Jim Sinclair sees hyperinflation as certain at this point.
Dear CIGAs,
US Federal Reserve Chairman, and Secretary TT of the US Treasury take warning!
As you can see, hyperinflation is a “currency event” caused by the failure of spin and sometimes even force producing a violent loss of confidence in the national currency during the worst of business conditions usually called a depression.
The US dollar, regardless of present technical money flows, is far from immune to hyperinflation. Hyperinflation is not a product of “demand-pull” price increases of goods and services, but currency based cost-push.
Do you finally understand?
Can we put the silly semantic argument of inflation versus deflation to bed now
Please do not ask any more questions on that ignorant argument common only to those that never took Economics 101.
Now I know why teachers sometimes scream
Most liberals are.
heh
The first thing any would-be political messiah has to do is find a scapegoat. They’ve been working the “Bush’s fault” and “Bush lied” lines for so long without a comeback from him that they pretty much convinced folks it was true.
But how long can that work. They’ll have to find a new scapegoat and don’t be surprised if the Wall-street tycoons they stigmatize turn out to be the Jooos.
I hate what the Dems are doing to the country with their deceit and outright lies.
The problems with Peter Schiff are:
1. He doesn’t grasp that Money Supply = Cash + Credit, and
2. He can’t explain why Japan has seen no hyper-inflation during their 20 years from 1989 to 2009 of massive government borrowing/spending and 0% interest rates.
Which is to say: Schiff is clueless about the real world.
The difference is day and night. The japanese people save. They had a positive trade balance and paid for their own initiatives. The government borrowed from its own citizens, not the Chinese. Japanese foreign reserves are high.
We are more like Bolivia in 1983-84, Peru in 1983-87, or Argentina in the 1990s. It will happen here. We have no control over our future because we depend on others to buy our debt.
The U.S. borrowed an *extra* $300 Billion for Bush's April 2008 tax rebate checks (the first bailout/stimulus).
Then the U.S. borrowed/printed an extra $700+ Billion for the first bank bailout bill in September of 2008.
That's easy math: an extra $1 Trillion printed.
Where's our hyper-inflation?
Now 0bama is signing an extra $800 Billion stimulus bill tomorrow. You think that will do what the first Trillion Dollars didn't?
You think that FDR's massive New Deal spending caused hyper-inflation during the Great Depression?
You think that Germany's Weimar hyper-inflation was caused by Germans' lack of savings?!
You've got some more thinking to do...
>> Sorry, not familiar with most of these guys. However, I am pretty happy to be on the opposing side of an argument from Ron Paul.
> Most liberals are.
Are you sure? I would think that Mr. Paul’s isolationist ideas and Keynesian approach to economics would find a welcome home in the modern Democratic Party.
I agree there has been a lot of stimulus without problems. There will be a lot more +1T deficits in the coming years. At a certain point how can that be sustained without causing problems? How much debt can the world buy? Is there another alternative other than monitization if they either stop, or slow down buying our debt?
We both see the pain coming, we are just debating a few of the symptoms.
Weimar’s inflation was the result of reparations. What do you see happening if we sell several $T to the world over the next few years and have to pay the interest?
The ‘Bush fault’ worked great for democrats for the last 4 years and they will milk it to death. Knowing this would be the case for a while ,I suggested that republicans disown Bush(which they are doing a bit now) but point out over and over that Pelosi was running congress for the past two years and point out the national debt increase over and over since democrats took congress. Republicans on TV wont do it, they let the claim stand every day that Republicans ran things 2007-2008. I would call it the Bush-Pelosi debt and economy. What the heck???
U.S. interest rates are 0%. Even negative. The government made 0.1% for borrowing $700 Billion for the September stimulus. Free money is being printed. No wait, we’re being paid to print money.
And we’ve got deflation.
You’re going to be mightily confused by the above unless you have learned that Money Supply = Cash + Credit, and that destroying private credit means deflation of the Public currency.
It’s a socialist’s dream come true...the private sector gets screwed with deflation...the government grows more powerful and gets paid (negative interest rates!) to print money.
What the Dems have been able to sell to the public with the help of the MSM is that the Republicans are responsible for the original mess with bad loans via Fannie Mae.
Actually it was Franks and Dodd and that crew who put bad loans into play by pressuring the banks and lenders into lending without investigation of the loans or seeing if folks actually had jobs and could pay.
All in the name of an new entitlement: to have a home loan leading to home ownership for poor people.
M3 used to be the most inclusive measure of US money in circulation. It was the sum of M2, plus deposits of over $100K, cash on hand in investment accounts, etc.
The Fed claims they discontinued M3 reporting in March of 2006 because of “the costs to implement the report.” This was likely hogwash. I think a more likely reason was that various funds and investment banks got tired of having the Fed snoop into their cash positions, which give away information on their timing and models.
A current source of M3 data? A couple of private sector sources have popped up. Here’s one:
http://www.nowandfutures.com/key_stats.html
You can create some of the same information from data on a Bloomberg as well.
Interesting. I suppose that is why Denninger is saying stay out of gold/silver? Open up the time frame to a few years out. Does that change the deflation, or does it continue to brutalize people paying mortgages etc. similar to during the depression?
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.