Great Depression, or Hyperinflation?
by Judge Dread 9 Replies latest social current
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garyneal
sensationalism
We'll see how it pans out.
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metatron
Well, both. It just depends where you are. Greece will certainly have both, as they fail to pay their debts, go to drachma toilet paper and then see prices explode, while jobs evaporate.
metatron
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WTWizard
If we keep having everyone in power dogging fixing the economy while the Rothschilds use Bernanke to dilute the US Toilet Paper Dollar by printing excess debt based toilet papers, we are in for both. The S-510/S-3767 just about assures a famine--if you can't read all 2,000 pages of it, don't think the enforcers and the SWAT teams hired to enforce it understand either. And the OsamaCare ObamaCare passed is also around 2,000 pages and contains (section 9006) provisions for 1099 forms to be filled out every time you spend 600 toilet papers or more at any one place--again, those in charge are not going to probe. They jail you and ask questions later. For sure, this is a recipe for a super whopper of a depression--add a fake energy crisis, and the whole economy totally dies.
Now for the hyperinflation. You have a limited amount of value in the system, and the Fed creates more money. Not only do they print toilet papers, but they type in more toilet papers. Most of the toilet papers exist only in digital form, and that is limited only by the number of available bits to devote to numbers. People that would create wealth get raided, whether the law is actually against them or not (the SWAT teams, judges, and juries are as confused about the laws and will make the most tyrannical decision by default when ordered to). Thus, each unit of wealth costs more toilet papers--and, more toilet papers flooding the market only adds to this.
Definitely, it is quite possible to have both at once.
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botchtowersociety
Definitely, it is quite possible to have both at once.
Yes it is indeed.
According to Shadowstats, the number of unemployed/underemployed is now at 22% of the population. Almost half of the jobs being created in the private sector are from McDonalds.
http://www.shadowstats.com/article/hyperinflation-special-report-2011
HYPERINFLATION SPECIAL REPORT (2011)
SPECIAL COMMENTARY NUMBER 357
March 15, 2011
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United States Nears Hyperinflationary Great Depression
Federal Reserve and Government Have Exploded the U.S. Fiscal Crisis,
Shattered Global Confidence in the U.S. Dollar but Not Resolved
Ongoing Economic and Systemic-Solvency CrisesHigh Risk of Ultimate Dollar Disaster Beginning to Unfold in Months Ahead
2014 Remains the Outside Timing for SameContracting Money Supply Can Be InflationaryWhen Real Economy Contracts Even Faster
Major Economic Series Suggest Formal Depression in Place
Great Collapse Nears
The U.S. economic and systemic-solvency crises of the last four years only have been precursors to the coming Great Collapse: a hyperinflationary great depression. Such will encompass a complete collapse in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system as we know it; and a likely realignment of the U.S. political environment. Outside timing on the hyperinflation remains 2014, but there is strong risk of the currency catastrophe beginning to unfold in the months ahead. It may be starting to unfold as we go to press in March 2011, but moving into a full blown hyperinflation could take months to a year, beyond the onset, depending on the developing global view of the dollar and reactions of the U.S. government and the Federal Reserve.
Prerequisites to the crisis unfolding include: the Federal Reserve moving to monetize U.S. Treasury debt; the U.S. dollar losing its traditional safe-haven status; the U.S. dollar losing its reserve status; the federal budget deficit and Treasury funding needs spiraling out of control. The Fed moved to monetize Treasury debt in November 2010. A much-diminished U.S. dollar safe-haven status has become evident in early March 2011, along with serious calls for a new global reserve currency. The economy is not in recovery and should display significant new weakness in the months ahead, with severely expansive implications for the federal deficit, Treasury funding needs and requisite Fed monetization of debt.
As the advance squalls from this great financial tempest come ashore, the government could be expected to launch a variety of efforts at forestalling the hyperinflation’s landfall, but such efforts will buy little time and ultimately will fail in preventing the dollar’s collapse. The timing of the onset of full blown hyperinflation likely will be coincident with a broad global rejection/repudiation of the U.S. dollar.
With no viable or politically-practical way of balancing U.S. fiscal conditions and avoiding this financial economic Armageddon, the best that individuals can do at this point is to protect themselves, both as to meeting short-range survival needs as well as to preserving current wealth and assets over the longer term. Efforts there, respectively, would encompass building a store of key consumables, such as food and water, and moving assets into physical precious metals and outside of the U.S. dollar.
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botchtowersociety
Not sure if this is offtopic or not....
So we screwed over the people by taking on private losses and bailing out banks and businesses. They told us it had to be done to save the US economy. The Euros have done the same thing.
Back when were doing the bailouts, I thought things would be better if they were allowed to fail.
Iceland did none of this bailout nonsense, and it looks like it has worked out better.
http://pointsandfigures.com/2011/06/16/iceland-what-we-should-have-done/
Iceland: What We Should Have Done
Starting in 2007, the US government developed aggressive programs to save the big banks($ GS,$ MS, $ C, $ BAC). Without them, each of them would have probably gone bust.
Advocates of those programs, and that aggressive intervention on behalf of a few large, private companies said they saved the American economy. Since the American economy is the largest driver they reason that they saved the world economy too. Captain Government Program to the rescue!
America wasn’t alone. Proving that dumb ideas can proliferate, the Europeans rescued their banks too.
I wasn’t an advocate of those programs. I would have let all the banks go broke. There would have been market pain, but the system we had post-crisis would have been a lot better. America had a long set of bankruptcy laws and legal precedent, along with financial safeguards built into the Federal Reserve system to keep us afloat. Instead we are left with big zombie banks that are an even greater fiduciary risk to the system than before.
Iceland didn’t rescue its banks. It couldn’t afford to do it. So, they went bust. Iceland looked like it was going down a path of permanent financial armageddon. However, Iceland is in better financial shape than the rest of Europe today.
“ Europe’s bailout path has only diverted ever-more resources to failing enterprises, postponing and deepening the problem. Iceland’s restructuring was both painful and costly for the population, but the government did not throw good money after bad, and the taxpayers were spared a nationalization of private debts. Is it any wonder that forward-looking financial markets are now betting on the Icelandic recovery?”
No Dodd-Frank. No super heroics. Just a level headed, clear eyed administration of bankruptcy law. The same would have happened here. Read the whole article.
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Judge Dread
Stagflation?
That could very well be.
JDW
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talesin
I have believed we are in a 'depression' for quite some time now. It is my understanding that a depression can only be 'declared' when the economy shows certain stats for 6 mos. in a row ---- these figures are easily manipulated, and the gov't can 'create' a few thousand part-time jobs for 6 mos, and 'tip' the figures so that we remain out of 'depression' mode.
It's all a shell game, and the sooner we all realize that fact, and stop arguing with each other about shadow politics, well .... the sooner we will be able to fix this mess.
tal
* not around much these days, too busy checking my e-mails *
