Posted on 05/01/2010 10:33:11 AM PDT by Errant
...if you start to see a great depreciation of the U.S. currency or a tremendous increase in lack of confidence in the soundness of the government's fiscal condition, there is a problem. You mentioned Greece, for example. The sovereign solvency issues there are minuscule compared to what we have with the United States, which is the elephant in the bathtub. The markets know it's there. The central bankers know it's there. Again, with the downturn in the economy, all the issues are going to be brought to a head. As they come to a head, there will be that effort to dump the dollar...
(Excerpt) Read more at marketoracle.co.uk ...
thanks to the dems and obama
I always love threads where the title ends with a “.”
Only in the sense that they have greatly hastened the process.
I predicted this to a professor in college during the 1970s when we were discussing the NYC bankruptcy and federal bailout. I was poo pooed.
This is inevitable and has been since the mid eighties. Prior to that we had a mathematical chance of changing the direction. Not for over 20 years has there been even a mathematical possibility of avoiding the collapse.
No it's not.
A Deflationary Greater Depression is here and will be getting worse once the Federal government loses its ability to create new debt fast enough.
I put it there just for you!
;)
Actually it was an errant finger that did it...
Most say maybe shortterm, but longterm most see Hyperinflation. If you have a persuasive argument, please help, because I know many who are trying to decide what to do, because It’s heads/tails anyway, IMHO, but I’d like to know as much as possible.
RE: I put it there just for you!
I’m a special snowflake! LOL
Yes, but not since the 1980’s. This started with intensity in 1968, when we reached the point of borrowing one dollar for every dollar of GDP.
LBJ and “The Great Society” on top of all the other Socialist and Keynesian programs is what hastened this inevitable bankruptcy.
Thanks, that is a terrific video.
The first thing to remember is that hyperinflation is not “horrible inflation.” It is only inflation at a slightly higher percentage.
The key difference between inflation and hyperinflation is that the latter begins destroying the currency. If you wait to that point, everyone will know, and it will be too late to dump dollars for something of value.
I’ve been predicting a double-edged sword that cuts with both swings: deflation of non-essentials combined with inflation of the essentials. Much “wealth” today is in the non-essentials. People are counting on that wealth to maintain their standard-of-living and others as part of their retirement.
Real-estate, with the coming collapse of both residential and commercial, will become an odd beast that is part essential and part non-essential. Anyone who invested in real-estate will be likely to take a haircut, if they are able to sell at all. The mortgage system as we have known it is doomed until the busy-bodies in government stop interfering in the business cycle and allow the bad debt and credit to liquidate.
Just my .02c (.00018 adjusted for coming inflation).
“I?ve been predicting a double-edged sword that cuts with both swings: deflation of non-essentials combined with inflation of the essentials.”
Bingo! The answer to “hyperinflation or deflation” is “both,” or rather “the worst parts of both.”
Thank you so much for that. That is more along the lines of what I have been hearing and trying to prepare for. If you have time, (or have read this article by chance), can you let me know what you think about this article. I was thinking about posting it, but have not done so yet. Thanks so much for taking the time to respond. I’m very greatful. Thank you, and God Bless.
“Get Ready, Inflation Is On The Way”
http://neithercorp.us/npress/?p=283
Just wait till the O man makes possession of gold illegal in the U.S. A lot of people that bought it will be so screwed.
Its time for a black market where everything is for sale at a price
Do you think it will dip again, or be fairly steady going up?
We’re in the mist of a deflationary inflation period now with the prospect of seeing hyperinflation for many necessities of life very soon.
I agree with Mr. Williams’s statement to batten down the hatches. One should diversify and I believe his advice on precautions in this article are sound.
“This started with intensity in 1968”
Bingo. JFK & LBJ, IIRC spent the very last real surplus we had. By 1973, the devaluation and unpegging from gold instantly set in motion what we see now as an unbacked scrip form of ‘currency.’
That's not going to happen. If it did, then we would still not have hyperinflation - but prices would increase by a factor of two or three...MAJOR inflation, but not hyperinflation.
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