Posted on 04/26/2015 6:29:07 PM PDT by markomalley
This happened to us during the revolution too. It won’t be the first time the U.S. has experienced hyper-inflation. Any sane person would become a prepper if they haven’t already.
We have mathematically illiterate people setting monetary policy.
No problem, right?
The 17th Amendment needs to disappear.
It is certainly not impossible. It will just bring on the consequences earlier than continuing it will bring them on and by ending it now rather than later the consequences will be less onerous. It has goer on long enough that the consequences will be horrific now, later it will be horrific times several.
The problem is we are too far gone over the edge right now. The politicians are going to see at some time or have already seen that the only possible way out will be a major war in the league of the World Wars. Perhaps that is why Hussein is ginning up a nuclear war in the Middle East. No one can convince me he is “bumbling.”
In a few years you will be able to pay your mortgage off for the same amont as cup of coffee will cost!
Sure seems that way!
Except, of course, you won't have a job, your savings will have been wiped out, and you won't be able to buy a cup of coffee...
I don't know why every one keeps saying raise the rates, raise the rates yada yada when they want inflation!
I got coffee put up. I be sell coffee and bear sign!
ZIRP is Sharia compliant....no interest /S
People in debt are the winners of this game. Elders are screwed royally.
This is deflationary. Government takes more and leverage is suddenly removed. The only way for the first world governments to get the economy going again and have a chance of paying down their debts is by devaluation (just like Argentina). But that is hard to do when the leverage was snuffed out. Leverage is the same as printing money. But its the private sectors way of printing money.
You should expect the governments to force the banks to buy their debt. Once the banks are solvent, act two starts. That's when rates go up and the borrowers and bond holders (including the banks) scream bloody murder. Because its too big a penalty and will hit too many people, the governments will get weak kneed and keep the rates reasonably low for as long as possible. Welcome to the 1970s as inflation starts to grow. Growth stocks go up, bonds go down. Pensions pay out with devalued dollars. Tax revenue goes higher. Fixed incomes get killed, as do annuities. But this is a few years away. I say 2017.
New name for 'The Beast'. Fitting.
“The next step is to confiscate bank deposits.”
there’s no need to do that, all they need to do is deflate it’s value to zero with infinite money printing, which is happening as I sit here and type.
We already knew this. If interest rates returned to market level, the now $600 billion annual interest on $18 trillion would balloon to consume all federal receipts.
The Treasury has the authority to emit money at no cost, yet we “borrow” it from the Fed, which injects the funds, and then charges U.S. interest to borrow our own money. In the event of hyperinflation, the results are well-known. But what happens when a currency crashes and the “full faith and credit” of the U.S. requires us to repay tens of $$trillions in accumulated debt?
bump
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