There will be no deflation. As our GNP drops, and our huge and growing larger deficit becomes a larger and larger portion of our GNP, they will print more and more money to pay or attempt to pay the interest on that rizing GND debt.
Meanwhile as the world economy contracts, there won’t be a country in the world foolish enough to buy U.S. treasury notes, rather they will be- as they already have- trying to spend the ones they already hold. China has been buying up gold mines and oil fields for instance.
The more money the government has to print to pay the bills, such as the rapidly growing welfare rolls, unemployment insurance, all those government salaries, school teachers, etc. Plus trying pay the interest on our growing national debt, the faster the value of our dollar will drop, which causes inflation. Hyper inflation considering the massive debt we are accumulating and spiraling downward GNP we are producing.
It happened in Mexico, Zimbabwe, and Germany after ww1. Don’t think it can’t happen here. It’s allmost certain and Obama is greasing the wheels on that freight train even more.
I worry about taxes...property taxes....
“There will be no deflation. As our GNP drops, and our huge and growing larger deficit becomes a larger and larger portion of our GNP, they will print more and more money to pay or attempt to pay the interest on that rizing GND debt.
Meanwhile as the world economy contracts, there won’t be a country in the world foolish enough to buy U.S. treasury notes, rather they will be- as they already have- trying to spend the ones they already hold. China has been buying up gold mines and oil fields for instance.
The more money the government has to print to pay the bills, such as the rapidly growing welfare rolls, unemployment insurance, all those government salaries, school teachers, etc. Plus trying pay the interest on our growing national debt, the faster the value of our dollar will drop, which causes inflation. Hyper inflation considering the massive debt we are accumulating and spiraling downward GNP we are producing.
It happened in Mexico, Zimbabwe, and Germany after ww1. Don’t think it can’t happen here. It’s allmost certain and Obama is greasing the wheels on that freight train even more.”
Deflation will continue for non-essentials. For energy, food and healthcare, costs will increase. Trickle down on energy may slow deflation a bit. On the deflation side, we are 75% of the way through it, I expect by mid 2010 to see a strong steady march of energy inflation. 2011 Bush tax cuts will expire, inflation and other local & federal tax increases, this will create the double dip or W effect and 2nd major leg down. As for hyperinflation, not set in stone but probably and that would occur as the US loses the world’s reserve currency status. The battle of the titans, East and West are in a Clash of the Titans phase right now, this plays out over several years and is not so instantaneous. Your points are also good.