Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Location: Sitting on a bar stool. Guinness in hand.
4,428 posts, read 6,513,707 times
Reputation: 1721
Quote:
Originally Posted by brently54
BUY GOLD and GUNS.
The End.
Don't' you belong on the Politics and controversies forum. You know,where the people that don't have a clue about the economy make ridiculous comments and add nothing to the conversation.
So if this bail out somehow doesn't manage to pass, will we see major deflation and numerous financial failures, forcing the liquidation of tons of assets before the government starts printing up money like crazy to combat it? If that's the case, I might start hoarding cash to pick up assets dirt cheap before the government gets the presses going. What do you guys think about this scenario?
Most money is created by debt, not the government printing money.
After the bailout, we'll go into a state of prolonged debt deflation, which means that the assets backing the debits (e.g., housing) become worth less than the amount that's been borrowed against them.
Most money is created by debt, not the government printing money.
After the bailout, we'll go into a state of prolonged debt deflation, which means that the assets backing the debits (e.g., housing) become worth less than the amount that's been borrowed against them.
Most money is created by debt, not the government printing money.
After the bailout, we'll go into a state of prolonged debt deflation, which means that the assets backing the debits (e.g., housing) become worth less than the amount that's been borrowed against them.
Stop and think about what you are saying. Yes, money is created by debt. Once this money is created then what? Do bills just simply appear out of no where? No, they run the printing presses hence the term printing money. Generally this is in relation to the issuance of t-bills. Anyway watch this link
They will increase the money supply, they have absolutely no choice if they plan to bail out to the tune of 1 trillion dollars. Anyone who doesn't think that will result in a decrease in the value of our dollar needs to have their heads examined or read books on economics.
P.S.
I don't know if we will see hyperinflation though. That is not only a economic situation but a political situation as well. If foreign govts move to another currency as the reserve currency or if they go to a basket of currencies then things could get interesting.
The ethanol business is a fine example of government supported industrial speculation. If these companies had saved some of their profits for future grain purchases (like did they expect to always be able to borrow operation funds at low rates?) instead of borrowing operating capital they would not be facing a cash flow crisis. This is just an example of bad financial planning to satisfy the speculative requirements of the initial owners for a quick buck. I have no sympathy. Let them crash and let the initial speculators loose their investments.
In addition we do not need a fuel source that uses more natural gas to distill the ethanol than the energy required to convert thee methane into transportation fuels. The whole program was an experiment socialized industrial production and a way of transferring money from the nation to the corn producing conglomerates.
Don't' you belong on the Politics and controversies forum. You know,where the people that don't have a clue about the economy make ridiculous comments and add nothing to the conversation.
He might be on to something. Did I call this or what? Let the liquidations begin. Just don't start inflating the bubble again until I've traded all of my cash for real assets at fire sale prices.
So if this bail out somehow doesn't manage to pass, will we see major deflation and numerous financial failures, forcing the liquidation of tons of assets before the government starts printing up money like crazy to combat it? If that's the case, I might start hoarding cash to pick up assets dirt cheap before the government gets the presses going. What do you guys think about this scenario?
that's what i'm doing. hope i don't get egg on my face
Wel if you look at overall inflation thyen look at the comdoites market and even oil . It dropped with the market because they know that their will be lesss of a market for goods. But this could lead definitely to much higher unemployment as companies need money and financing to operate.With money tight there will be less people able to get credit say to buy a car even.Less buyers for tho9ngs means that thiongs will drop in value which can mean lower prices but also less production.
Location: Sitting on a bar stool. Guinness in hand.
4,428 posts, read 6,513,707 times
Reputation: 1721
Quote:
Originally Posted by TexianPatriot
He might be on to something. Did I call this or what? Let the liquidations begin. Just don't start inflating the bubble again until I've traded all of my cash for real assets at fire sale prices.
Come on TP your smarter than that automaton. Yes gold would not be the worse idea. But this whole Johnny get your gun stuff ain't fit for the business forum. I shocked and surprised that the guy wasn't blaming illegals for this whole financial debacle.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
