The problem with declining asset values in nominal terms, in the event of interest rate increases to contain inflation, is that it can tear down the banking system since the assets values are founded on credit. So perhaps high inflation is a solution if it can be managed that nominal values remain intact but inflation reduces real values of assets to realistic levels?richard5za wrote: Mon Jan 17, 2022 3:44 amRE: INFLATION VERSUS DEFLATION DEBATEvincecate wrote: Sun Jan 16, 2022 3:45 pm I wrote another post to my blog:
Deep Reasons for Current Trouble
https://howfiatdies.blogspot.com/2022/0 ... ouble.html
Nice article, Vince.
Economist Jan Nieuwenhujs writes that total USA debt to GDP ratio is at a record 370%. His
I know some people here think that the economy will collapse but just maybe it could be managed so that most of us become poor without a socio political_economic disaster?
The other question is where will the store of value be? Currently with negative real returns on bonds, people have come to believe that stocks and real estate are secure stores. But once these are debased where will the next stores of value be? Physical gold I suspect is the only asset that can't default, albeit can reduce in value, but proably would increase in real value. I don't know about the crypto storage?