On Hyperinflation (Dire predictions. Be forewarned.)

The Market Ticker - Commentary on the Capital Markets ^ | 1/12/09 | Karl Denninger

[Gritty]

"Pray that our nation's leaders aren't stupid enough to set in motion such a course of action either by accident or under the foolish belief that they can "keep the outcome under control".

Anybody get a warm fuzzy when reading this statement?

[razorback-bert]

bond purchasers tend to be saavy folks.

There are some bond buyers that are afraid their CDs, money market and investments accounts might go south, so their thinking is better US bonds at little or no interest, than no money at all. Madoff has scared many investors.

[Atlas Sneezed]

Gold is a pain and you have to pay people to store it.

---

I don’t see anything painful about it, and you can store it yourself. A small box holds enough to pay off a typical mortgage.

[An Old Man]

That is a very sobering video!

$53,000,000,000,000 deficit! Did I get that right? $53 Trillion?

Our family share is $350,000 Forget it fellas, I don't want to play anymore. You guys can pick up our share.

[Travis McGee]

A water well with an old fashioned hand pump could make you the king of your block.

[Travis McGee]

to couteract a Kondratieff Winter event, which is something we've entered

Cue the scary music and screams. I wish this were a joke. It's not. It's deadly serious. Just damn.

[Travis McGee]

I don’t understand this point. FDR did not put roofs in over the heads and food in the bellies of the general population any better than did Hoover. What worked for Frank, in my opinion, was the beginning of “identity politics,” and the creation of coalitions of voters who depended on a particular candidate to get them goodies. But perhaps that’s what you meant in the first place.

That is SUCH a prescient and insightful comment! I wish I had thought of it in those terms. Spot on, IMHO.

[Travis McGee]

65 is brilliant. I am on my feet applauding.

[Publius]

Thank you, Travis. You’re the first person to get it.

[Travis McGee]

By the time we get to that point (regional secession, even “virtual” secession) the USA won't even be recognizable.

[Travis McGee]

"Pray that our nation's leaders aren't stupid enough to set in motion such a course of action either by accident or under the foolish belief that they can "keep the outcome under control."

Anybody get a warm fuzzy when reading this statement?

I get more of a feeling like drunken pyromaniacs on crank are in charge of the fireworks factory.

[RinaseaofDs]

Outstanding analysis, and exactly right.

UNLESS China planned on wiping out the USA in a military strike, they have to live with the current situation. If it’s even conceivable, the Russians and Chinese were even MORE STUPID than the financial geniuses in the US. As our financial titans were galloping over the cliff, the Chinese and Russians arrived in busses and sports cars to take the plunge.

[Travis McGee]

No, hardly. Remember, there are 15 lurkers per compulsive commenter like moi.

[Travis McGee]

Boy, if I ever have enough gold to need to pay people to store it!!!!!!!!!!

An ammo can would contain.......

[nina0113]

I remember magazine ads in the mid-70s (under Ford) showing a worker, a housewife, and a storekeeper as PIGS, with copy saying, “We all need to be a little less piggy.”

We need a new set of ads with people appearing hoarding nuts for the winter, "We all need to be a little more squirrely."

I'm composting absolutely everything to improve my soil for all the food I intend to grow. No few little salad tomato plants this year - gotta get serious.

[nina0113]

Even today, pig farmers will tell you that they always walk the razor’s edge with pork prices. A few pennies in the wrong direction could wipe them out.

Raising them as a cash crop, yeah. One nice clean pig in the backyard's been a literal lifesaver for many many families.

[razorback-bert]

I had to go and look:

The phases of Kondratieff’s waves also carry with them social shifts and changes in the public mood. The first stage of expansion and growth, the “Spring” stage, encompasses a social shift in which the wealth, accumulation, and innovation that are present in this first period of the cycle create upheavals and displacements in society. The economic changes result in redefining work and the role of participants in society. In the next phase, the “Summer” stagflation, there is a mood of affluence from the previous growth stage that change the attitude towards work in society, creating inefficiencies. After this stage comes the season of deflationary growth, or the plateau period. The popular mood changes during this period as well. It shifts toward stability, normalcy, and isolationism after the policies and economics during unpopular excesses of war. Finally, the “Winter” stage, that of severe depression, includes the integration of previous social shifts and changes into the social fabric of society, supported by the shifts in innovation and technology.

[Thunder90]

The next crisis is the Credit Card crunch. It has already started to a small extent with the cutting/suspension of credit lines to those with good credit. When it becomes full blown, it will make the housing crisis look like child’s play.

[Xenophon450]

Exchanging something with no inherent value(paper) for actual goods and services is called Fraud... when the layman does it.

So in essence the US Government is going to perpetrate the largest fraud in the history of the world by Hyperinflating our currency to pay these suckers?

Wars have been started for less.

[razorback-bert]