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Old 10-10-2008, 11:32 AM
 
20,571 posts, read 19,225,062 times
Reputation: 8164

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I sorry to say that mentioning an inflationary holocaust along side a debt deflation depression is the dumbest most inane thing EVER conceived on the level of a dry wetness.
These are nothing but economic buzz words pulled from alphabet soup.

Bailing out banks will NOT cause hyper inflation. We are POST inflationary. Oil prices, stocks and real estate is contracting. When hyper inflation does not happen or if it does not happen you will completely miss the scam. Let me show you the difference.

Yes it is good to have price stability and not let our currency which is DEBT be destroyed. Now some of you may never have bothered to study the difference between a treasury note and a federal reserve note. If not, do so now.

It goes something like this.

1 situation:

Asset price deflation is causing debtor distress because of real debt increases. Obligations are growing relative to the rest of the economy. Example 10 Mr Smiths:

Before

House : 100,000 equity
Salary: 100,000
debt: 100,000

After
House: 50,000 equity
Salary:50,000
debt: 100,000

Real obligations or debt have doubled.

Fair scenario : to maintain price stability inject 50,000 dollars to all ten Mr Smiths. If they don't retire debt it will eventually drive all prices back up The 10 Mr Smiths

House: 100,000 equity
Salary:100,000
debt: 100,000

If they retire $25,000 debt it would be something like


House: $75,000 equity
Salary:$75,000
debt: $75,000

You should pay attention to the deflationary spiral may continue if debt does not remain stable because it destroys the money supply. In this scenario it would still cause a problem because retiring debt destroys currency hence perpetual debt for society forever. We need to kill off Federal reserve notes and fractional reserve banking.


Unfair scenario:

To maintain price stability give a Mr Jones 500,000. Mr Jones goes on a buying spree.


House : 500,000 equity
Salary : Doesn't need to work , charges rent
debt: none

Mr Smiths:
House :25,000 equity or paying rent
Salary: 100,000 - some of which goes to pay rent
debt: 25,000 -only got 75,000 for selling house


Now when the banks are getting all the new money for price stability instead of giving tax rebate checks. Which do you think is going on?

We where given a max $1500 per house hold where the bail out is at least $8,000 per house hold.


That's the scam. Who cares if you lose half your money when you can buy things for a 10th of the price?
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Old 10-10-2008, 12:09 PM
 
Location: Some place very cold
5,501 posts, read 22,390,581 times
Reputation: 4353
Quote:
Originally Posted by gwynedd1 View Post
I sorry to say that mentioning an inflationary holocaust along side a debt deflation depression is the dumbest most inane thing EVER conceived on the level of a dry wetness.
You've been warned, that's all I have to say, and I'm not going to waste my time arguing with people like you anymore. I have to take care of myself, and I'm stocking up on food and canning supplies. When you are hungry and out of work, please do not come asking for any handouts from me. You can stand in the soup lines with all the other dreamers.
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Old 10-10-2008, 12:28 PM
 
Location: New England
740 posts, read 1,873,025 times
Reputation: 443
I have been following this guy for years and he is usually right on the money. He and George Soros founded the Quantum fund together. He called the tech crash and the commodity boom along with investing in Asia. I would listen to what he says!
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Old 10-10-2008, 12:29 PM
 
Location: Great State of Texas
86,052 posts, read 84,131,087 times
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Quote:
Originally Posted by fxtrader View Post
I have been following this guy for years and he is usually right on the money. He and George Soros founded the Quantum fund together. He called the tech crash and the commodity boom along with investing in Asia. I would listen to what he says!
But is he factoring in the manipulation being done by the Fed ?
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Old 10-10-2008, 12:34 PM
 
522 posts, read 959,995 times
Reputation: 117
The Economic Debacle, Solution....

Solutions...



The problem is not the collapse of the stock market which simply reflects the deflation of the bubble economy. The problem is the oncoming recession/depression caused by the absence of an economic engine to generate new producing power.

Keynesian plans for top-down creation of jobs by government deficit spending has never worked and has always ended in an attempt by the government to inflate its way out of debt. Everything being suggested by the Obama/McCain campaigns is based on the failed Keynesian formula.

An entirely new paradigm is needed. This can be provided through dividend-based economics like the Alaska Permanent Fund, the 2008 tax rebate stimulus, and the basic income guarantee (negative income tax) discussed during the 1960s and 1970s.


1. Non-taxable vouchers should be issued at the rate of $1,000 per month per adult and $500 per month per child which may be used for food, housing, fuel, communications media, utilities, and educational services provided at outlets within the U.S. Distribution of vouchers may be delegated to state and local governments.

2. Vouchers will be deposited by service providers and vendors only in a new network of local chartered savings banks—one for each county in the U.S. Deposits will be made to the bank in the county of the local point-of-sale.
3. Banks will lend locally at zero-percent interest using voucher deposits as capitalization. The banks may create loans at a 1:10 reserve ratio with borrowers paying administrative fees only. Borrowers must provide a 20% down payment as collateral or purchase default insurance at 2% of the loan principal.
4. Lending will be made only to business entities, including family or commercial farms, operating from an established location within the county.

This system will create a grassroots “bottom-up” economic infrastructure to parallel the “top-down” Federal Reserve System which is collapsing. Transfers between local savings banks and the banks of the Federal Reserve System will be denominated in U.S. dollars with vouchers redeemed within the banking system.

The system could be implemented within a matter of weeks through seed-money provided by the federal government. It could be replicated by any other nation.
It is requested that readers give this plan the widest possible distribution.

Notes; reference; http://www.econlib.org/library/Enc/K...Economics.html


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Old 10-10-2008, 01:05 PM
 
3,269 posts, read 9,904,822 times
Reputation: 2025
Quote:
Originally Posted by gwynedd1 View Post
I sorry to say that mentioning an inflationary holocaust along side a debt deflation depression is the dumbest most inane thing EVER conceived on the level of a dry wetness.
These are nothing but economic buzz words pulled from alphabet soup.

Bailing out banks will NOT cause hyper inflation. We are POST inflationary. Oil prices, stocks and real estate is contracting. When hyper inflation does not happen or if it does not happen you will completely miss the scam. Let me show you the difference.
What do you think is going to happen when all those pretty green dollars we are printing and giving to the banks make their way into the system?
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Old 10-10-2008, 01:22 PM
 
Location: Raleigh, NC
9,059 posts, read 12,932,190 times
Reputation: 1401
Quote:
Originally Posted by UKOK View Post
What do you think is going to happen when all those pretty green dollars we are printing and giving to the banks make their way into the system?
To show the ignorance of some people, I was talking with a friend who just said as a counter to hyperinflation: "the government can just fight it". lol.

Then again, they can fight it. They can restrict gold ownership, devalue all currencies simultaneously, and institute price/wage controls. Yep, that'll work.
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Old 10-10-2008, 01:24 PM
 
20,571 posts, read 19,225,062 times
Reputation: 8164
Quote:
Originally Posted by UKOK View Post
What do you think is going to happen when all those pretty green dollars we are printing and giving to the banks make their way into the system?
Hello UKOK,

If there is assets deflation? Price stability as they buy it all up, you just will not be able to buy it.
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Old 10-10-2008, 01:25 PM
 
Location: Great State of Texas
86,052 posts, read 84,131,087 times
Reputation: 27718
You have to remember that none of this stuff is taught in schools. People either learn this stuff or they go on autopilot. On autopilot they rely on the MSM who has been telling us the government will fix it.

What happened to learning and critical thinking and questioning what's behind the MSM "news" ?
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Old 10-10-2008, 01:26 PM
 
Location: Some place very cold
5,501 posts, read 22,390,581 times
Reputation: 4353
Quote:
Originally Posted by fxtrader View Post
I have been following this guy for years and he is usually right on the money. He and George Soros founded the Quantum fund together. He called the tech crash and the commodity boom along with investing in Asia. I would listen to what he says!
Economist Michael Hudson also says we'll have hyperinflation:
Guns and Butter for Wednesday, October 8th, 2008
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