Financial topics

[vincecate]

Curious what others think of this #mintthecoin idea?

I believe it is one of those things that nobody believes will ever happen, so they do not think about it before it happens.

If it does happen do you think it will contribute to inflation?

[Reality Check]

You can feel the business being crushed. Liberals who get beaten totaly senseless turn into realist or eat there own.

They will eat you too. If you let them. They will not just eat their own.

[John]

Curious what others think of this #mintthecoin idea?

I believe it is one of those things that nobody believes will ever happen, so they do not think about it before it happens.

If it does happen do you think it will contribute to inflation?

No more than the existing multi-trillion dollar QE has done so far.

[Reality Check]

If it does happen do you think it will contribute to inflation?

If we avoid a financial collapse ( and the deflation and shortages that go with it ) over the next three years.

If we avoid a first strike nuclear attack on the U.S. over the next three years .

I would expect raging standard inflation to kick in during next five years.

Hyper-inflation is not something I know enough about to have an opinion - my limited knowledge of it links it to the collapse of governments or societies or nations - which means hyper-inflation might be the least of most peoples troubles.

Look back to what really happened during the Great Depression and the Dark Ages and I believe we see how localized and hard to predict the circumstances maybe. When I say what really happened, I mean on a day by day, month by month, year by year basis. It affected different people differently.

[Reality Check]

No more than the existing multi-trillion dollar QE has done so far.

It keeps coming back to that. And why inflation is not already raging.

Almost like on the one hand money is being printed by the government,

and on the other hand the government is taking actions to ensure it is not being used to stimulate any parts of the economy other than

the real estate market and the financial institutions.

Are they really that smart, or is it just an unintended consequence ?

[John]

At the risk of sounding like my usual broken record, this is a
generational thing. People have been predicting "hyperinflation next
quarter" at least since 2003, which is when I started writing about
this issue.

Near-hyperinflation occurred in the 1970s because:

All the new businesses created in the 1930s were at their height of
innovation and productivity, and weren't burdened yet by a massive
bureaucracy. As a result, there was a huge demand for labor at all
skill levels, pushing up wages, and triggering wage-driven inflation.
It was a time of exciting innovation, which also pushed up
consumption. (There was also a rebound effect from Nixon's insane
wage-price controls.) The stock market was underpriced in the 1970s,
so there was no deleveraging going on. Almost any reasonable
investment made money. Debt was almost unheard of, so it was safe to
go into debt. The velocity of money was very high.

Every one of those factors is reversed today. Since 2000, companies
are burdened by huge bureaucracies and union contracts, so it's
dangerous to hire someone. Jobs have fled to Asia, so unemployment is
high, pushing down wages, causing wage-driven deflation. With high
unemployment, it's dangerous to go into debt. Real estate is falling,
so it's dangerous to buy a house. People and businesses were badly
burned by the collapse of the credit bubble, so it's considered
dangerous to invest. Deleveraging is going on, so the velocity of
money is collapsing.

None of this has anything to do with Obama or Bernanke. This is
entirely generational.

A world war will change the dynamic, but it's far from clear that it
will cause hyperinflation, any more than it did in WW II.

When today's babies become teenagers in the 2020s, then things will
finally change, at least until the Singularity.

[OLD1953]

The FED has obviously wanted and even had directors stating that they want inflation to increase and the value of a dollar to drop. With all their manipulations they've not managed to inflate anything but stock prices, and even that is breaking down. If it wasn't for many companies going private or engaging in enormous stock buybacks, the market would already be down quite a bit.

Oh, you've got to laugh at this:

http://news.yahoo.com/aig-thinking-suin ... nance.html

[Reality Check]

The FED has obviously wanted and even had directors stating that they want inflation to increase and the value of a dollar to drop.

I am not sure that is so obvious at all.

Both Federal Reserve and U.S. Government Policies have been intended ( or had the unintended effect ) of making borrowing for small and medium size businesses much more expensive and much harder to get since the Financial Crisis started in the 2007 time frame.

FED policy has been directed at keeping financial institutions profitable and propping up the value of existing mortgages to banks and propping up the housing market for the same purpose.

A much different policy would be followed if they were trying to ramp up inflationary growth.

[Reality Check]

.
It Starts:

http://washington.cbslocal.com/2013/01/ ... ees-hours/

Obamacare is being implemented and the true effects are being felt but rarely reported in the Main Stream Media.

Meanwhile Gun Control Executive Orders, UN Treaty compliance Gun Control Regulations, and Fiscal Cliff II will dominate the Media.

Obama Care taxes, Obama Care penalties and Obama Care removal of contractual price controls on Medical costs will not be covered by the Media.

[OLD1953]

RBS to cut bonuses. I suppose they'll all threaten to quit and go somewhere that hasn't got caught yet.

http://www.foxbusiness.com/news/2013/01 ... +-+Text%29