Posted on 09/13/2010 7:25:41 PM PDT by Kartographer
Right now, we are in the middle of deflation. The Global Depression we are experiencing has squeezed both aggregate demand levels and aggregate asset prices as never before. Since the credit crunch of September 2008, the U.S. and world economies have been slowly circling the deflationary drain.
To counter this, the U.S. government has been running massive deficits, as it seeks to prop up aggregate demand levels by way of fiscal “stimulus” spending—the classic Keynesian move, the same old prescription since donkey’s ears.
But the stimulus, apart from being slow and inefficient, has simply not been enough to offset the fall in consumer spending.
(Excerpt) Read more at businessinsider.com ...
PING!!
posted already
http://www.freerepublic.com/focus/f-chat/2579097/posts
In the not too distant future, I’ll be able to push my wheelbarrow of cash to the grocery store to buy bread, but be able to stop by and pay my mortgage off on the same trip.
The touchoff is the Iranian-Israeli war.
Throw in random terrorist attacks and crippling attacks on oil infrastructure here in the States and in the Eurozone, and things will be a real mess.
Many if not most Mortgage Contracts have a clause that disallows paying off the mortgage balance in inflated / hyper inflated dollars... otherwise - foreclosure... Better check your contract...
What do they expect to be paid with??
Killjoy!
We’ve got deflation. Home prices aren’t going to see “hyper-inflation” because there are 77 million Baby Boomers all bumping up against retirement age, looking to cash out of their mcmansions.
...and there are already 19 million vacant homes.
I wouldn’t count on salaries seeing “hyper-inflation” either...because more than 10% of the country is out of work or under-employed.
We’ve got deflation. Home prices aren’t going to see “hyper-inflation” because there are 77 million Baby Boomers all bumping up against retirement age, looking to cash out of their mcmansions.
...and there are already 19 million vacant homes.
I wouldn’t count on salaries seeing “hyper-inflation” either...because more than 10% of the country is out of work or under-employed.
"A recent guest post by Gonzalo Lira on Zero Hedge, providing a theoretical framework for the arrival of hyperinflation, went viral, generating over 75k views and over 1,000 comments, further confirming that the biggest and most confounding debate in all of finance is what will the final outcome of the Fed's market manipulative actions be: deflation, inflation or, and not really comparable, hyperinflation (which is a distinctly different phenomenon from either of the above).
The post infuriated some hard core deflationists who continue to refuse to acknowledge the possibility that in its attempt to inspire inflation at all costs, the Fed may just push beyond the tipping point of monetary imprudence away from mere target 2-3% inflation, and create an outright debasement of the world's reserve currency."
"One among these was none other than Mish himself, who a week ago recorded a podcast on Global Edge with Eric Townsend and Michael Hampton (link here), in which his conclusion was that Hyperinflation is the endgame, "so it is unlikely."
You need to view the slideshow so you’ll understand what hyperinflation is all about. Nothing Boomers or unemployed can do about it.
A very thought-provoking article, all I can say is I hope he’s wrong, because otherwise we are all screwed.
I believe that federal legal tender laws might trump mortgage clauses.
I don’t know if I am correct or not... but legal tender, etc. does not matter much if a bank files foreclosure... then it becomes an expensive legal matter... not legal tender...
Government will eventually promote inflation, alot of it, to “cover” the monstrous debt we are running up.
Preparedness/Survival ping!
Hyper-inflation is not like regular inflation.
It’s the result of loss of confidence in the currency.
Given the size of our debt, it’s a miracle anyone has any confidence in it at all.
A matter to be decided by common pleas judges elected by the people. I wonder how they would rule ;)
Buy wheat, flour, a mill, and a bread maker (wood stove).
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