Skip to comments.Halloween hyperinflation?
Posted on 10/04/2010 10:46:54 AM PDT by Big Bureaucracy
It is spooky time when central banks stop selling their gold. For a layman like me that means the cash is worthless...
If the country has a massive debt the politicians tend to get rid of it by inflating the currency. The losers with saving accounts see their money buying power fade. The problem with the USA was that folks used to carry a lot of personal debt (which also loses value during hyperinflation). So for the Feds to get rid of the national debt they have to make the folks save first.
The housing bubble worked for the Feds like a charm. Every foreclosure means one giant personal debt less. Banks were loaded with a lot of hard assets (those are very valuable during hyperinflation).
In the panic people with savings will do anything and pay any price to get rid of the paper and buy something they can touch or eat. Selling real estate during hyperinflation and using the cash to cover old loans and debt can do miracles. You can get rid of a lot of personal debt if you act fast, before the central banks start adjusting the rates.
Of course the US government bought a lot of bad mortgages. Those will cover a nice chunk of the national debt if hyperinflation strikes.
Even spookier: the banks stopped the foreclosure procedures half way. They dont want the houses sold. The paper money may be worthless. What good are those dollars? The banks will be better off with the real estate in their assets. In case of hyperinflation those houses will turn golden...
(Excerpt) Read more at bigbureaucracy.com ...
That is a scary proposition
One thing I don’t understand is how banks expect to sell all those properties when people can’t get loans and their savings are in the toilet.
Keep wqatching TV folks. All the Six TV networks in the USA which own all the other cable channels will keep supporting the muslim - thanks to your viewership. Enjoy sheeple.
There are trillions of dollars sitting on the sidelines of the economy that are not invested - if the dollar is considered worthless - they will have to buy something - anything to get rid of the dollars.
i don’t believe the banks are holding the foreclosure sales because of a paperwork concerns - it doesn’t make sense. The banks want to keep the houses - not sell them - this is what my layman brain tells me. i hope I am wrong.
Reparations. Banks are not getting anything for them. I am sure people are getting side money. Some people are more equal than others.
Something very bad is down the (short) road. Sadly, my kids will be the ones taking the brunt of it.
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