This page has been archived and commenting is disabled.

'Zee Stabilitee & The Wealth Effect' - Name These Two Charts

Tyler Durden's picture





 

UPDATE: Answers Provided

  • Chart 1 is the real value of the German stock market from 1914 to 1927 (and the lower chart is the nominal price)
  • Chart 2 is the real value of the Dow Jones Industrial Average from 1999 to Present (real = adjusted for the value of Gold)

A century apart and a continent apart. With Bernanke's fingers now glued on CTRL-C, perhaps the reality of these two charts suggests it's really not different this time at all...

 

Chart 1 - Zee Stabilitee

 

Chart 2 -The Wealth Effect

 

Can you identify what is being charted in each of these images?

Doing so may help to lift the veil of Bernanke's (and Draghi's) Grand Plan.

 

Charts: Bloomberg and Bridgewater (Page 136-146)

 

Hint: Below is the nominal version of Chart 1:

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 09/15/2012 - 21:52 | Link to Comment erg
Sat, 09/15/2012 - 22:07 | Link to Comment vast-dom
vast-dom's picture

yes but the paper and the ink is different this time!

Sat, 09/15/2012 - 22:15 | Link to Comment Michael
Michael's picture

The Republicans do the Polka dance clockwise to the right,
The Democrats do the Polka dance counter clockwise to the left.
That's the only difference.

Sat, 09/15/2012 - 22:23 | Link to Comment erg
erg's picture

Meanwhile, we all try and find the still-point in the swirling maelstrom.

Sat, 09/15/2012 - 22:52 | Link to Comment Michael
Michael's picture

Add in CFR control freak nonsense and it means we're all screwed. That's what the charts mean. Look at all the pretty bubbles. I'll get into that CFR bullshit another time.

But let me give you this for now;

Dick Cheney ex-director of CFR talks to David Rockefeller

http://www.youtube.com/watch?v=BbnpN07J_zg

Sun, 09/16/2012 - 00:03 | Link to Comment Michael
Michael's picture

Academics of modern economics screw everything up and give me migraines.

Sun, 09/16/2012 - 00:32 | Link to Comment Michael
Michael's picture
(Video) CIA aids and abets terrorists with funds and weapons to sustain war on terror

http://www.examiner.com/article/video-cia-aids-and-abets-terrorists-with-funds-and-weapons-to-sustain-war-on-terror

OBAMA ADMINISTRATION ACCUSED OF FUNDING TERRORISM IN IRAN

http://www.youtube.com/watch?v=GZRbLnbTtbo&feature=player_embedded#!

Sun, 09/16/2012 - 04:26 | Link to Comment Michael
Michael's picture

You've just got to get rid of your fears for a little while.

Till things blow over.

P.S.

These last few comments are talking points memos for tomorrow.

Discuss.

Sun, 09/16/2012 - 04:50 | Link to Comment Michael
Michael's picture

Looks like CNN is launching a hatchet job on BO, just in time to get the two sides closer to a 50/50 split within .001%.

That's their job.

Sun, 09/16/2012 - 07:41 | Link to Comment Sofa King Confused
Sofa King Confused's picture

Talk to yourself often????

Sun, 09/16/2012 - 08:58 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

No I don't.

 

Yes I do.

 

Crap....shut the hell up!!!

 

Hey, don't look at me....he started it.

 

Sun, 09/16/2012 - 10:05 | Link to Comment Atlas_shrugging
Atlas_shrugging's picture

Following Bridgewater link shows chart 1 is German stock market real returns, chart 2 must be our market in gold terms...I don't have a Bloomberg machine to determine which market but don't it look ominous...

Sun, 09/16/2012 - 00:39 | Link to Comment putaipan
putaipan's picture

MAHA-BINDU ! BITJZES!  s'cuez my capitalz tylerz....but is that a trick question? there are three charts......( man-o-nash! i missed the hint)

Sun, 09/16/2012 - 01:07 | Link to Comment Michael
Michael's picture

The answer is; They all pretty much fit together and/or when inverted upon each other?

P.S.

Putainpan, I loved that movie and may watch it again.

Sun, 09/16/2012 - 01:13 | Link to Comment CunnyFunt
CunnyFunt's picture

But you forgot to wish Barry and Michelle a happy 20th wedding anniversary.

Sun, 09/16/2012 - 03:51 | Link to Comment Michael
Michael's picture

Those two are Irrelevant, and they're just as Irrelevant as you.

9 Weeks, 5 Days.

Sun, 09/16/2012 - 11:00 | Link to Comment CunnyFunt
CunnyFunt's picture

You're SO important, big man.

Forgive me for having a life and not being able to comment on ZH for 17 straight hours on a Saturday.

Get over yourself, bitch.

Sun, 09/16/2012 - 18:22 | Link to Comment Michael
Michael's picture

9 Weeks, 6 Days.

Sun, 09/16/2012 - 19:13 | Link to Comment CunnyFunt
CunnyFunt's picture

So ou quantify your relevence based on how long you have been a ZH "member"? Damn, way to pull rank, big man!

How does it feel to live with such a great void? I almost feel sorry for sad bastards like you.

Sun, 09/16/2012 - 11:13 | Link to Comment Stoploss
Stoploss's picture

I've been out back working on my new currency carrier, since 15 wheel barrows welded together is a little "cumbersome".

The 8 HP Briggs and Stratten has been scrapped in favor of the 400CID blown small block to move the paper from the back yard to the front yard.

Pretty soon, chart three will simply be a line overlaid on a grid, reffered to only in angles.

Sat, 09/15/2012 - 23:38 | Link to Comment SafelyGraze
SafelyGraze's picture


erg says: "splunge"

pretty sure that means something dirty

Sat, 09/15/2012 - 21:53 | Link to Comment Nolsgrad
Nolsgrad's picture

zee dime year notes!

Sat, 09/15/2012 - 21:54 | Link to Comment nmewn
nmewn's picture

Print for me my bitch, I have my own retirement plan.

Sat, 09/15/2012 - 21:55 | Link to Comment Unbezahlbar
Unbezahlbar's picture

Chart 1 =purchasing power of the dollar?

 

 

Sat, 09/15/2012 - 21:57 | Link to Comment Dasa Slooofoot
Dasa Slooofoot's picture

purchasing power of a weimar dollar. 

Sat, 09/15/2012 - 22:03 | Link to Comment mharry
mharry's picture

Unbezahlbar Chart 2, the same. Different century.

Sat, 09/15/2012 - 23:03 | Link to Comment Everyman
Everyman's picture

Chart 2 looks like FAZ, TZA, and DRV.

Sun, 09/16/2012 - 03:38 | Link to Comment vast-dom
vast-dom's picture

the big difference is that FAZ will go parabolic, while chart 2 is all downhill.

Sun, 09/16/2012 - 11:15 | Link to Comment Stoploss
Stoploss's picture

1 and 2 are value of the dollar.  3 is money supply. 

Sat, 09/15/2012 - 21:56 | Link to Comment Yen Cross
Yen Cross's picture

 Tyler the " IP's are stomping on ya! Had to use my cell phone with "Opera 12" to get through. Your site breakdowns are becoming more " Prevelant"!

Sat, 09/15/2012 - 23:58 | Link to Comment q99x2
q99x2's picture

NSA overhead and freenet has been crawling in the tunnels.

Sun, 09/16/2012 - 01:12 | Link to Comment Yen Cross
Yen Cross's picture

"prevalent" issues. Sorry for not isolating, sentence structure. That was un-acceptable.

Sat, 09/15/2012 - 21:58 | Link to Comment runthenumbers
runthenumbers's picture

It means that nominal value is the only thing that matters to central planners.

Sat, 09/15/2012 - 21:59 | Link to Comment Missiondweller
Missiondweller's picture

Chart 1 German Mark

Chart 2 US dollar

Sat, 09/15/2012 - 22:02 | Link to Comment Unbezahlbar
Unbezahlbar's picture

I changed my mind. I agree with Missiondweller.

Sat, 09/15/2012 - 22:32 | Link to Comment Schmuck Raker
Schmuck Raker's picture

-1

Until you enlarge that avatar

Sat, 09/15/2012 - 23:33 | Link to Comment Capitalist
Capitalist's picture

Chart 2 is Dow priced in gold

Sun, 09/16/2012 - 00:55 | Link to Comment JFK.4PREZ
JFK.4PREZ's picture

Yup!  

Chart 1) German markets priced in gold (real terms)

Chart 2) Current DOW markets priced in gold (real terms)

Chart 3) German markets priced in fiat (phony baloney terms)

 

Sun, 09/16/2012 - 01:37 | Link to Comment Yen Cross
Yen Cross's picture

Deutche Mark, and it's freely traded. Greece is toast! So is Spain!

  Italy will barf for concessions like Greece. Greece will be toast in 60 days, and it won't be a big deal. All the small " Club Meds" will follow suit. Portugal, Cypress, ect...

Sun, 09/16/2012 - 05:58 | Link to Comment Haager
Haager's picture

And today it is not German Mark but the Euro.

Did anyone notice that gold in Euro is actually cheaper this week than it was the week before?

Sat, 09/15/2012 - 22:03 | Link to Comment Dasa Slooofoot
Dasa Slooofoot's picture

I'm guessing chart 3 is German nominal debt/GDP? 

Sat, 09/15/2012 - 22:05 | Link to Comment Dr. Engali
Dr. Engali's picture

Deutsche mark and the dollar buying power.

Sat, 09/15/2012 - 23:01 | Link to Comment Yen Cross
Yen Cross's picture

 Englai, I'm  " Portugal" long "Deutsche Marks"!   That currency is beautiful, and in circulaton!

Sat, 09/15/2012 - 23:07 | Link to Comment kito
kito's picture

Yen, buy the ruble...physical...russia just raised interest rates...they are peepping for a prominent role in the next reserve currency

Sat, 09/15/2012 - 23:30 | Link to Comment Yen Cross
Yen Cross's picture

Kito, or Kitko?  Metal Head!

Sun, 09/16/2012 - 00:42 | Link to Comment kito
kito's picture

did you open that renminbi savings account yet?............

Sun, 09/16/2012 - 00:56 | Link to Comment Yen Cross
Yen Cross's picture

3.762573 years ago.  Long singapore / BITCHEZ/

Sat, 09/15/2012 - 22:03 | Link to Comment Nolsgrad
Nolsgrad's picture

real returns vs nominal returns of the German markets. Chart 2 Real returns of nasdapple?

Sat, 09/15/2012 - 22:08 | Link to Comment ChanceIs
ChanceIs's picture

I think that Max Keiser's site is being "disrupted" by JP Morgan if not the government.  One server never stops downloading.  Waiting for.....to respond, etc.  It can actually lock my PC for 30 seconds at a time.  No other site does that.  Come to think of it, that delay might just be the CIA searching my hard drive and emails.   No doubt I am a suspected terrorist.  At least they can't throw me away w/o a hearing since that judge reinstituted habeas corpus while shredding the NDAA.

Frankly I wouldn't be surprised to see Stacy and Max go the way of Jimmy Hoffa.  That would be a real loss for the world.  I hope that they are taking precautions.  Jamie Diamon never accepts Max's invitation to appear on his show.  I love the way Max rips Diamon - no holds barred.  He was excoriating Geithner today:

http://maxkeiser.com/2012/09/15/kr341-keiser-report-collateral-transform...

 

Sun, 09/16/2012 - 00:46 | Link to Comment AustriAnnie
AustriAnnie's picture

Just because you're paranoid doesn't mean............

Sun, 09/16/2012 - 08:59 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

..............ok, what already!!!

Sun, 09/16/2012 - 13:16 | Link to Comment donsluck
donsluck's picture

...they're not really after you.

Sun, 09/16/2012 - 17:37 | Link to Comment Kobe Beef
Kobe Beef's picture

If you're not paranoid, you're not paying attention.

Sun, 09/16/2012 - 00:51 | Link to Comment putaipan
putaipan's picture

think george washingtons' recent share on courage.....either that or they both have squirrelly end on al gorish carbon bucks.

 

(actually it might be their linky to the poor journalist gal from jersey who was trying to expose the rape of her island/the world)

 

but either way rest your weary mind that max and stacy are moving steadily closer to the belly of the beast....stay tuned!

Sat, 09/15/2012 - 22:10 | Link to Comment Jason T
Jason T's picture

German stock market priced in gold?

Sat, 09/15/2012 - 22:13 | Link to Comment Jason T
Jason T's picture

I was close!  It was the stock market however.

 

Anyone care to guess the unemployment rate in Germany the Summer of 1922?

 

It was 1% bitchez. 

Sat, 09/15/2012 - 22:13 | Link to Comment Ineverslice
Ineverslice's picture

Wheelbarrow inventories then and now?

Sat, 09/15/2012 - 22:21 | Link to Comment valkir
valkir's picture

Cheers bitchez.Much better than charts bitchez,a?

Sat, 09/15/2012 - 22:21 | Link to Comment Appleseed
Appleseed's picture

German gdp, and chart 2 is purchasing power or dollar index of the us dollar

right tyler?

Sat, 09/15/2012 - 22:28 | Link to Comment Jason T
Jason T's picture

Chart 2 is Dow to Gold Ratio

Sat, 09/15/2012 - 22:28 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Honestly Tyler, I don't understand half the charts you post when they ARE labeled. This is just plain mean.

Sun, 09/16/2012 - 10:24 | Link to Comment petolo
petolo's picture

We don,t need more charts. Look around people; The times they are a Changing and you better start bullion or sink like a stone. 

PM charts on the fridge.

Sat, 09/15/2012 - 22:30 | Link to Comment Appleseed
Appleseed's picture

close, germany real stock market, and us stock market

Sat, 09/15/2012 - 22:33 | Link to Comment Rastadamus
Rastadamus's picture

I am a simple man. does this mean I get more money?

Sun, 09/16/2012 - 12:20 | Link to Comment BooMushroom
BooMushroom's picture

Yes! So much, in fact, you may start burning it for heat in the winter. Rich!

Sat, 09/15/2012 - 22:45 | Link to Comment Schmuck Raker
Schmuck Raker's picture

I cheated to learn the first, so I won't say.

Maybe the second is IBEX. I can only check it back to '08, but it looks close.

Sat, 09/15/2012 - 22:50 | Link to Comment TumblingDice
TumblingDice's picture

Stock market to gold ratio, first in Weimar Germany then in America. The comparison is valid but with one huge difference between them: back then there was still a currency backed by gold while today it is a totally fiat situation... meaning today you wouldn't sell your currency as fast if you knew the others were giant turds while back then there was still paper flying around with a guarantee on it so it was an easy decision which paper held value and which didn't when it was crunchtime.

Sat, 09/15/2012 - 23:52 | Link to Comment Dr. Engali
Dr. Engali's picture

Yeah I'm fairly certain you're right. I think my answer was wrong.

Sun, 09/16/2012 - 08:35 | Link to Comment Son of Loki
Son of Loki's picture

That's the point. No paper currency is now safe. As Dalio said in his interview in the former ZH post, gold is THE BEST. However, since there is not enough of it to go around in this modern financial system, it cannot be used as a currency nowadadys. He also said anyone how does not hold at least 10-15% gold in thier portfolio is ignorant of history and what is happening right now.

 

His interview is long but well worth watching.

Sat, 09/15/2012 - 22:49 | Link to Comment icanhasbailout
icanhasbailout's picture

My guess is that these are the (either inflation-adjusted or gold-denominated) stock market valuations for Weimar Germany and the US present-day.

Sat, 09/15/2012 - 22:52 | Link to Comment BlackholeDivestment
BlackholeDivestment's picture

LMAO, thought it was Faber for a sec. 

http://www.youtube.com/watch?v=Hi3bFg0dLxo

Sat, 09/15/2012 - 22:54 | Link to Comment Nolsgrad
Sat, 09/15/2012 - 23:51 | Link to Comment Yen Cross
Yen Cross's picture

Pack up your SHIT! and head to the Forrest!

Sat, 09/15/2012 - 23:20 | Link to Comment CunnyFunt
CunnyFunt's picture

The third chart is the number of citations issued in German beer gardens for serving beverages greater than 500mL.

It's all related.

Sat, 09/15/2012 - 23:25 | Link to Comment Colonel Klink
Colonel Klink's picture

Something tells me this isn't going to end well.....seems like things are rhyming.

Sat, 09/15/2012 - 23:25 | Link to Comment Yen Cross
Yen Cross's picture

 The chart? +163% on the bounce?    

 

                                                  Meteor Shit!

Sat, 09/15/2012 - 23:55 | Link to Comment SafelyGraze
SafelyGraze's picture

first chart is the cost of a hooker, priced in passports

Sat, 09/15/2012 - 23:57 | Link to Comment Calidreaming
Calidreaming's picture

those first two charts look like my bank account

 

 

 

Sun, 09/16/2012 - 12:25 | Link to Comment BooMushroom
BooMushroom's picture

Checking account inflows, 2006-present.

Sun, 09/16/2012 - 00:02 | Link to Comment q99x2
q99x2's picture

Graham Summers newsletter sales and the last one is the drop off of his subscribers.

Sun, 09/16/2012 - 00:31 | Link to Comment Yen Cross
Yen Cross's picture

 The BBG chart maintained a Ratio; 44/63 tops.  The SIGMA is 23%0  The average , was Flat! 33.453%-44.56593%

  Initial projections! I realize Tyler will out/do me by 4-5 (percentage points  .0000). " Ten Thousandths"

Sun, 09/16/2012 - 00:43 | Link to Comment are we there yet
are we there yet's picture

South Park banking ..... and itsss gone.......

Sun, 09/16/2012 - 01:02 | Link to Comment Yen Cross
Yen Cross's picture

I implore you? Show me your " Mathmatical derivitives". It's 102 on the coast in Cali. / I'm retarded-hell bent( from the heat!

Sun, 09/16/2012 - 01:10 | Link to Comment alentia
alentia's picture

The second chart suggest that we have reached the bottom! Should we all now sell all the gold we have got and start buying $INDU?

 

I bet Bernanke has the Ace in his sleeve. Next thing you know he will announce US Gov have 16Trl tonns of gold and will start dumping it in the market.

 

Or even better, he will back each $50 paper bill with gold buffallo. 

No, this will not play... There will be mile long lines of people willing to exachange their paper... Wait, what about the second graph? Should people get in line to buy $INDU with their buffallos?

Sun, 09/16/2012 - 01:18 | Link to Comment Yen Cross
Yen Cross's picture

We discussed (DXY) Friday. It will gap up IN Asia.  The DXY will form a (S/T) top before all the douch`e bag (ACB's) clear out their $ long positions.

  Some where "74" would be my target. I have a hunch something"geo-political" is going to scare the shit out of the markets.

   Long($)

Sun, 09/16/2012 - 03:39 | Link to Comment AGoldhamster
AGoldhamster's picture

How high do you expect it to go, before it turns again?

Sun, 09/16/2012 - 01:18 | Link to Comment dwdollar
dwdollar's picture

I'm sure that since the entire world will be experiencing hyperinflation simultaneously this time, we will fair much better than Germany in 1922-23! Plus we have electronic currency! Using modern computers we can easily process everyday transactions involving numbers that reach into the quadrillions. Ben can also lop off 0's every few days with Ctrl-A Delete. This is gonna be fun.

Sun, 09/16/2012 - 01:22 | Link to Comment gwar5
gwar5's picture

That would be real returns of German and US stock markets over said time periods.... and, nominal returns of the German market circa Weimar period.  Seriously, you mean you guys didn't read all 130+ pp of Ray Dalia's (Bridgewater) report??  Baby fat, Bitchezz! 

 

Anyway, Dalia (and TPTB @ CFR) is in love. He thinks this is just gonna be the best deleveraging ever... Thinks Bernankistan has avoided the usual hard deflationary part of deleveraging (defaulting) before the inflationary part. Ergo, it's now all clear to invest accordingly for the big inflationary part, ie., PMs, hard assets.

Problem is, I don't think the scenario has ever happened to a global reserve currency which is a few months away from getting that status revoked by the gold hoarding Chinese, Russians, and the Benevolent Order of Muslim Brothers with Oil. Neither are jobs and wage inflation anywhere on the US horizon to keep up. My guess is deflation (Stagflation) is going to be there but with inflation of essential things like food and gas which won't affect and guys like Dalia!

Sun, 09/16/2012 - 01:28 | Link to Comment Yen Cross
Yen Cross's picture

My comments are SHORT TERM! One week at most!

Sun, 09/16/2012 - 12:56 | Link to Comment gwar5
gwar5's picture

Hey, Yen!  Don't be cross... I simply can't do multiple short snarky comments like you guys on a thread, it would take me hours/days. 

 

I'm in the mountain boondocks with a tenuous WiFi patchwork connection that goes in and out. I have to pick my spots and just do a few long comments, and can rarely respond in timely manner. Btw, I always enjoy reading your comments and I gave you the up arrow because that was damn funny!

Bumper sticker: God Bless WiFi... especially my neighbor's unprotected signal.

Sun, 09/16/2012 - 01:29 | Link to Comment kevinearick
kevinearick's picture

No response from labor when an ambassador gets cooked. what does that tell you? more importantly, what does that say to every public, private and non-profit politician globally?

Sun, 09/16/2012 - 01:56 | Link to Comment Colonel Klink
Colonel Klink's picture

"non-profit politician" Hahahahaha, pardon the pun but, that's rich!

Sun, 09/16/2012 - 03:06 | Link to Comment JamesBond
JamesBond's picture

both charts beg the question -

when will hyperinflation strike the USA?

 

jb

Sun, 09/16/2012 - 03:33 | Link to Comment SixteAjoutée
SixteAjoutée's picture

The first diagram shows german equities (stocks) vs. hardbased currrency (Goldmark, $, GLD), 1913 = 100% . The second: US-equity (stocks, e.g. SP500 or DJ) vs GLD. The third shows german equities (1913  = 100%) recalculated/adjusted with GDP-deflator.

 

 

Sun, 09/16/2012 - 04:45 | Link to Comment jose.six.pack
jose.six.pack's picture

CTRL-P

Sun, 09/16/2012 - 07:35 | Link to Comment ptoemmes
ptoemmes's picture

CTRL-ALT-DEL

Sun, 09/16/2012 - 12:51 | Link to Comment Haager
Haager's picture

It's that bad? I had hoped ALT-CTRL-F4 would be enough.

Sun, 09/16/2012 - 07:37 | Link to Comment Heroic Couplet
Heroic Couplet's picture

Best thread ever for why the other 49 states don't have a Wall Street. Why should New York State? There is no provision in the US Constitution for Wall Street. Shut it down.

Sun, 09/16/2012 - 07:50 | Link to Comment GS-DickinDaMuppets
GS-DickinDaMuppets's picture

The charts don't mean anything, they are just a diversion to give ZH aficionados something to do while waiting for WW3 to break out in the Middle East.

 

 ...doing GOD's work...GS-DickinDaMuppets

Sun, 09/16/2012 - 10:31 | Link to Comment mrpxsytin
mrpxsytin's picture

Hey guys here's a question. I'm not making any assertions. just tossing my thoughts out there.

At the core of it, is hyperinflation any different from hyperdeflation in terms of real household wealth? I'm talking about the households who cluster ± 1.5 SD around the mean (the main bulk of the population).

Aren't they simply two sides of the same coin? Are they simply two possible effects of a common cause? 

IF REAL tangible wealth (food and energy) reaches a point where it can no longer sustain a given population then you now have a shortage. This will cause the price of food and energy to rise. People will be forced to reign in their discretionary spending which, left unchecked, COULD result in hyperdeflation in non-food/energy goods. And if this happens then all those businesses close down and people's material possessions become totally worthless (ie. their wealth diminishes). People focus on trying to feed themselves and will trade almost anything to get food and energy.

OR we call in the central bankers and they just pump out money because they think that it's simply a matter of low consumer confidence that people are no longer spending money on crap. "It's only in your head that you can't afford to eat or pay the heating and electricity bills. Here, have some more tokens and go buy an Ipad". And so the central planners pump trillions more tokens into the game and we get hyperinflation. In this scenario, the printing of money does nothing to create more food and energy supply. People have more tokens but the food and energy cost heaps more. So they are in much the same situation as in hyperdeflation. Only difference is that they are trying to work out how to actually eat the stuff they grow on Farmville, while they jerk off to photos of random women on Facefuck that they access on the 30+ Ipads they have laying around their cardboard box).

So in terms of household wealth I do not see any difference to the average person in a hyperdelfationary cycle or a hyperinflationary cycle.

Bear in mind I'm not making any points about which option gives the best liklihood of economic recovery. I'm just talking about the PAIN caused during these two cases. To make my thought clear: I think that if you were the common denominator you would be fucked in hyperinflation or hyperdeflation.

Sun, 09/16/2012 - 19:23 | Link to Comment akak
akak's picture

I would say that one difference is that while hyperinflation has been seen dozens of times in monetary history (but mostly in the benighted 'Age of Fiat', i.e. the last century), hyperdeflation has NEVER been seen even once.  Even plain old deflation has been vanishingly rare, while 'ordinary' inflation is ubiquitous and ever-present under every fiat currency regime.

Mon, 09/17/2012 - 06:39 | Link to Comment MisterMousePotato
MisterMousePotato's picture

One other thing ...you (mrp, that is to say) seem to think that hyperinflation is the same as inflation, only worse. Not so. Inflation is a monetary phenomenon, whereas hyperinflation is not.

Mon, 09/17/2012 - 09:00 | Link to Comment mrpxsytin
mrpxsytin's picture

I'm not sure if I said that. But thanks for commenting.

I think I said that hypoerinflation is caused by a shortage of food and energy. And that is not a monetary phenomenon.

And hyperdeflation is also caused by a shortage of food and energy.

Which option we choose may make very little difference to the impact on the average people.

Unless we can increase the food and energy supplies then the people keep getting poorer.

Sun, 09/16/2012 - 10:49 | Link to Comment Frankie Cokeupt...
Frankie Cokeupthenozza's picture

Every Sunday, just about this time, I feel glad that I am a retired snowbird that lives in a litle town in Baja Sur, where our real concerns are which beer, what fish and no politics or business.

Sun, 09/16/2012 - 10:49 | Link to Comment Frankie Cokeupt...
Frankie Cokeupthenozza's picture

Every Sunday, just about this time, I feel glad that I am a retired snowbird that lives in a litle town in Baja Sur, where our real concerns are which beer, what fish and no politics or business.

Sun, 09/16/2012 - 12:47 | Link to Comment The.Oracle
The.Oracle's picture

Cannot wait for the DOW to be 5,000,000!

 

Sun, 09/16/2012 - 21:23 | Link to Comment alentia
alentia's picture

Are you saying gold to be $5,000.000 per troy ounce?

Sun, 09/16/2012 - 14:16 | Link to Comment Anasteus
Anasteus's picture

Approaching hyperinflation. We can only hope the result will be different from that of Germany's. But... yes, it sure will, this time is different after all.

Do NOT follow this link or you will be banned from the site!