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Geographical Area: United States. Time Frame: Next 18 Months.
Submitted by Zero Hedge on 09/12/2009 02:27 -0400
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You do not understand hyperinflation. It is not something that politicians can control. In fact, they can set it in motion (and they have), but they cannot control it, or flip it on or off like a switch. Hyperinflation occurs when people lose confidence in the currenecy. In this case it will be a number of factors, not the least of which is a loss of confidence in the US gov, which will then also bring the dollar into question.
The dollar is toast. Hyperinflation as a result of a loss of confidence in the dollar is inevitable. Get gold (and guns) and brace yourself.
I am Chumbawamba.
"as they won't even be able to pay bodyguards with a destroyed currency."
Sounds like inflation to me.
Got gold?
Deflation is not politically palatable. That's why the Fed continues to attempt to inflate our way out of this. It is not politically palatable because it harms the banks and the banks control the government. So they will continue to do everything in their power to inflate, but they will fail. They will fail because the bad debt in the system is simply too large and must be destroyed. The impact of such destruction is deflationary. I am stunned that they don't seem to understand that they cannot win the game they are playing, and that they are willing to destroy the economy and the currency in what eventually will be recognized as a failure.
But in reality isn't deflation necessary? I mean my God everything already is going up, aside from wages. Since we have gotten off the gold standard certain things go up a lot faster than others. Health care, food, energy. I mean for a family of four to go see a pro football game it's at least 500 bucks. From 2001 a 20 oz. of soda has gone from .99 cents to $1.59! Just as one example.
Didn't this whole mess start because people couldn't afford the houses they were living in? Isn't it 31% of take home can be allocated toward a home at least as far as the banks are concerned?
If we have some deflation in other areas aside from wages we will close the affordability gap especially on housing. Don't bubbles have to deflate at some point? I just don't see how advantageous any inflation is at this point. People are getting pissed. If you don't have any money how can you spend it?
Aren't there some stats at how much inflation has gone up in terms of wages VS everything else? It seems that inflation has been accelerating since Reagan. I mean before Reagan most people could get by on one income. Since then there have been two income families just to get by.
I mean what is next legalized polygamy?
I would love to see a moratorium on income taxes for 5 years. That would get the economy running again. But what is more likely to happen because of all this "blowback" recently concerning spending and health care is that a second stimulus will come out that will be for households in hopes of buying votes for the mid term elections. It's going to have to be bigger than Bush's. Much bigger.
Wait until the Bush tax cuts get repealed.
Well said.
Deflationary within the US, inflationary outside. answer three , both
Simultaneous deflation of everything (paper) that you own, and inflation of everything you need.
Deflation first (in the USA)
Hyperinflation elsewhere (China - Middle East)
Inflation next (in the USA)
What is most destructive to the greatest number is the most likely.
I agree with Steve from VA.
The poll didn't stipulate regions.
Anyone who thinks the Fed and Treasury won't spend every future dollar our kids can produce doesn't understand the primary motivation of governments...to stay in power.
Deflation will make a weak financial system even weaker, Inflation will hurt everyone but it's preferable to deflation over the longer term. People will complain about it but they'll have to keep their money, property, livelihood IN the system. With deflation, money appreciates just sitting under the mattress.