John wrote:If we were in any other generational era, it would mean massive inflation, but in this generational crisis era, deflationary trends cannot be overcome.
vincecate wrote:> John wrote:If we were in any other generational era, it would mean
> massive inflation, but in this generational crisis era,
> deflationary trends cannot be overcome.
> The Revolutionary War and the Civil War both had hyperinflation
> and both were generational crisis eras. In WW2 America did not get
> hyperinflation, but in 2 of the last 3 crisis eras it did get
> hyperinflation. So how can you say "in this generational crisis
> era, deflationary trends cannot be overcome"? Would it not be more
> accurate to say, "given America's last 3 crisis eras we can
> estimate there is a 67% chance of hyperinflation in this crisis
fischer_76 wrote:> and BTW helicoptor ben has already said he will not allow
> deflation - meaning he is going to print money faster than barack
> can spend it
John wrote:For the zillionth time, Vince, the US dollar was not a world reserve currency in the 1780s or the 1860s, but is a reserve currency today.
I recently read an article, but can't find the reference right now, about how inflation is increasing in China. That's because of China's stimulus and bailout programs, and the fact that the yuan is not a world reserve currency. I would not be surprised in the least if China goes down the hyperinflation route.
John wrote:The problem is that the Fed can't print money fast enough to replace the money that's being destroyed through deleveraging.
vincecate wrote:John wrote:The Treasury is borrowing an extra $1.5 trillion per year. Do you really think people/companies are paying down more than $1.5 trillion in debt per year? In this economy? Reports are there is an "issuance surge" as companies want to take advantage of the crazies loaning money at near 0% (largely the Fed I suspect).
xakzen wrote: Japan has nothing to so for it's lost decades except 200% Debt/GDP which many believe they will eventually have to default on as their population retires.
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