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How is the USD going to hyper-inflate when U.S debts are dollar denominated debts? In the often cited example of Germany, those were treaty of Versailles debts that were extra ordinarily punishing and the debts were held in foreign nations currencies. Printing their own currency to pay them down, caused the value to fall.
How is the USD going to hyper inflate when the BOJ, ECB, and BOA are employing many of the same tactics in lockstep? The USD is the standard which all others float against.
Massive loss of confidence, both domestically and internationally. Though internationally first, because because Americans are oblivious and haven't got a clue.
The US has $170T of sovereign debt and unfunde liabilities that it has no ability or intention of ever repaying. When people wise up to the ponzi scheme, it's game over.
Last edited by Taggerung; 04-19-2020 at 05:48 PM..
Massive loss of confidence, both domestically and internationally. Though internationally first, because because Americans are oblivious and haven't got a clue.
The US has $170T of sovereign debt and unfunde liabilities that it has no ability or intention of ever repaying. When people wise up to the ponzi scheme, it's game over.
Not one dime of sovereign debt or interest has gone unpaid in over 200 years. It is in our Constitution.
The reason why sovereign fiat debt is not Ponzi, is because any debt can always be paid off in that sovereign debt. So inflation is certainly possible, but not BK unless we the people or our elected officials agree to that.
Massive loss of confidence, both domestically and internationally. Though internationally first, because because Americans are oblivious and haven't got a clue.
The US has $170T of sovereign debt and unfunde liabilities that it has no ability or intention of ever repaying. When people wise up to the ponzi scheme, it's game over.
It’s clear that you don’t even know what a Ponzi scheme is....it’s hilarious when people like you use the term and it just makes you stand out as clueless.
Anyways, you want to see loss of confidence, look at the Mexican peso or the Russian Rouble. The USD is soaring.
You also literally skipped over my questions. How is the USD going to go down if the BOJ, BOE, amd ECB are doing the same types of programs? Do you think people are going to put their money in the chinese yuan? zloty? Quatzels?
It’s clear that you don’t even know what a Ponzi scheme is....it’s hilarious when people like you use the term and it just makes you stand out as clueless.
Anyways, you want to see loss of confidence, look at the Mexican peso or the Russian Rouble. The USD is soaring.
It's a ponzi scheme because the US government has absolutely no way of paying its debts- it simply borrows from new investors to pay off old investors. That is a ponzi scheme.
Back when Bernie Madoff got caught, he said something to the effect of "why are you guys coming after me? The USv government runs the biggest ponzi scheme in the world."
Now, say what you want about Madoff, but the man knows a ponzi scheme when he sees one.
You also literally skipped over my questions. How is the USD going to go down if the BOJ, BOE, amd ECB are doing the same types of programs? Do you think people are going to put their money in the chinese yuan? zloty? Quatzels?
For the answer to that question, Google 'Exters Pyramid.'
It’s so amusing watching some of you ramble on about Zimbabwe. In 2008, at the height of their inflation, their economy was worth less than $5 billion. The company I work for has more revenue than that in a quarter. Usually when I mock people’s bad examples, I can point to how they’re using a country with a gdp smaller than Pittsburgh or Colombus when they want us to follow some country’s ideas here. I can’t even come up with a city name in the U.S that people would recognize that’s lower than $5 billion. Anybody got a name for a 5th or 6th tier city in their state that others might know? I mean, yes if my company started trying to pay bills with company currency or your one tiny 6th tier city created its own currency, you might have a point.
I’m sure that’s comparable to the country with 1000 foreign military bases, more than a dozen aircraft carriers, and 20% of world GDP with veto power in nearly every world institution from the IMF to the UN. 62 percent of foreign currency reserves are held in USD because they trust the USD more than their own currency.
Zimbabwe. Yeah, ok.
Last edited by Thatsright19; 04-19-2020 at 09:10 PM..
It's a ponzi scheme because the US government has absolutely no way of paying its debts- it simply borrows from new investors to pay off old investors. That is a ponzi scheme.
Back when Bernie Madoff got caught, he said something to the effect of "why are you guys coming after me? The USv government runs the biggest ponzi scheme in the world."
Now, say what you want about Madoff, but the man knows a ponzi scheme when he sees one.
No way of paying the debts, but yet it hasn’t defaulted. As Alan Greenspan said, we can always guarantee payment, we just can’t guarantee the value of those payments.
The old “look at what those guys over there are doing” defense. How’s that working out?
I don’t really care that Bernie Madoff tries to rationalize his behavior by attempting to compare himself to a monetary sovereign.
And no, the U.S doesn’t promise high returns for investors and it also doesn’t even always need investors seeing as how the federal reserve has been buying the debt lately. I still don’t see how it’s a ponzi scheme, but carry on. There’s no deception. Buyers want to hold usd because they trust usd more than their own currency.
For the answer to that question, Google 'Exters Pyramid.'
So a pyramid that has the currency and the debts of the very countries I mention as the second and 3rd tiers of strongest assets to hold?
You’d have to explain that to me how that answers my question, unless you think every currency is going to zero and gold will be the only asset class standing. Otherwise, his pyramid proves my point. The major currencies rule. U.S debt is the “risk free” baseline.
Throw $1000 usd off a balcony domestically or foreign, and you’ll get your answer on how much faith there is that the usd has value.
We've just started one round of "stimulus" checks and this is likely just the beginning. Can someone explain to me how creating more digits and injecting them into people's bank accounts is supposed to increase prosperity? These digits have no value whatsoever, except when they are spent into circulation, which steals purchasing power from all the other digits. This is theft, we're all going to steal from each other, and that's supposed to make us all richer? If this worked, shouldn't Zimbabwe be on top of the world? All this is, is a massive tax/punishment on prudent cash savers to bail out the financially reckless.
Well the stimulus, in addition to UI benefits, are meant to feed your family. Most people got one because it was much easier to disburse that money to everyone, than it is to meet and qualify each person to receive the money. Some are jobless. Some are working even more hours in response to the pandemic. Some are even making overtime pay.
It is known and simply accepted by those passing the bill that, depending on each household's financial situation, it may go to food, it may pay off debt, it may go into savings, or it may even get spent frivolously. Of course purchasing power can be created out of thin air. But when it's allowed to happen for too long, it increases prices across the board.
By virtue of the standard American consumer, people will spend "what they can afford" (as much money as they can borrow) to get what they want. You make more money available, it pushes prices up. That $500k house doesn't get any closer to the lake just because some dumba-- bid it up to $1M.
EACH TRANSACTION is a new start. Your house may not appreciate much if all you have is local buyers. But if you catch the eye of a new Yankee transplant who thinks it's a steal, you might be about to receive a substantial windfall!
So a pyramid that has the currency and the debts of the very countries I mention as the second and 3rd tiers of strongest assets to hold?
You’d have to explain that to me how that answers my question, unless you think every currency is going to zero and gold will be the only asset class standing. Otherwise, his pyramid proves my point. The major currencies rule. U.S debt is the “risk free” baseline.
Throw $1000 usd off a balcony domestically or foreign, and you’ll get your answer on how much faith there is that the usd has value.
The US government will default, just not honestly. An honest default is telling your creditors you can't pay. A dishonest default is paying your creditors back in full, but in heavily debased currency.
The USD is still the most sought after currency in the world, for now, but its days are numbered. The outrageous debasement of the currency from the Federal Reserve and the fiscal lunacy from the government all but guarantee the USD's death. People who have figured this out are getting into gold and silver.
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