Exploding money supply

[ViewFromThePeak]

Inflation becomes runaway rather quickly. Zimbabwe, the common example, is so important to realize because their dollar was nearly at parity with ours not long ago. Iceland's currency too, and Iceland is a sophisticated monoculture. No race integration issues, just bad banking policies.

[shorebaby]

Originally Posted by ViewFromThePeak

Inflation becomes runaway rather quickly. Zimbabwe, the common example, is so important to realize because their dollar was nearly at parity with ours not long ago. Iceland's currency too, and Iceland is a sophisticated monoculture. No race integration issues, just bad banking policies.

I am pretty concerned about this, I don't think there is any way to avoid inflation and I don't think hyper infaltion is impossible.

[ViewFromThePeak]

Originally Posted by shorebaby

I am pretty concerned about this, I don't think there is any way to avoid inflation and I don't think hyper infaltion is impossible.

Correction: Iceland did not have parity and I never thought that. They had a relatively stable currency for quite some time until 2008.

[jetgraphics]

Originally Posted by shorebaby

Put aside your hatred for Arthur Laffer, are you concerned about this?

Get Ready for Inflation and Higher Interest Rates - WSJ.com

[] Since the money token supply is a debt instrument, and a repudiated one at that (Title 12 USC Sec. 411), one should realize that it's not an exploding "money supply".
[] And if you see the chart, you'll note that it DIPPED at 1999-2000. Remember what happened? The Clinton "balanced budget". In case you are unaware, the only way new Federal Reserve Notes (dollar bills) are legally authorized, is when Congress goes DEEPER into debt. So when a "Balanced budget" occurs, no new debt money tokens can be created (Insane!). Which, in part, helped trigger the Dot.Com bust.
[] In 2007, and 2008, Congress borrowed MORE than it paid in debt service. In other words, what Bernard Madoff was arrested for, Congress is doing, year after year - paying old investors with money tokens from new investors.

How long will it go on?

Answer: depends on the number of fools who think they will get "rich" investing in and with wastepaper notes....

The imminent Great Depression of 2010-2030 will be a tough one to endure. Take a cue from those who struggled through 1929-1945, when jobs were limited or when commodities were rationed. Imagine a situation when BOTH hit you - rationed jobs and rationed supplies.

Invest in arable land, plant a garden, stock up on necessities, arrange your shelter to minimize consumption of resources, and hang on as best you can.