Hyperinflation/Economic collapse

Discussion in 'Politics' started by EbencoyE, Sep 16, 2009.

  1. When is this shit supposed to go down? Are there any estimates or anything or is it all a guessing game? Just curious.
  2. dont know guess we should just wait and see
  3. In the US system true hyperinflation is almost completely impossible.

    Hyperinflation occurs when there is already a copious amount of inflation and the government responds by printing tons of money anyway. This usually happens in places like Zimbabwe, where the government is run by an autocrat who doesn't have to worry about re-election. Democracies tend to be protected because whoever caused the hyperinflation by ordering a mass printing of money has pretty much killed their re-election chances.

    The only time hyperinflation CAN happen in a democracy is when you get a situation like Argentina in the 1990s when one of the political parties ran on a platform of "We will print more money". Since that isn't in the Democrats or the Republican's platform right now, I think we're good.

    As for economic collapse - we came pretty close. The scariest possible scenario involves high-inflation + high unemployment. Right now unemployment is high, but inflation is low, so there's less concern. Don't get worried until inflation looks bad and employment hasn't recovered.
  4. The tab from the bailouts and trade deficit, are not picked up by the international community. So the US have already begun to use inflation as a means to finance this extravagant spending.

    Normally newly issued US treasury bonds would have been bought up by foreign countries using their dollar surplus from their trade with the US. Not happening these days, so the Fed prints more money so the government can buy its own treasury bonds.

    In effect taking money out of all US citizens pockets, and giving it to failed financial institutions by means of inflation.

    This will turn into hyperinflation when China starts unloading US dollars en-masse into more stable and viable currencies. It will trigger an avalanche in the international currency trade, that will leave the USD in rubbles. Already China is hoarding scarce resources, metals mostly, using USD to pay for it. Shifting its reserves from inflation-threatened USD to real value assets.

    On a smaller scale, they are diversifying their foreign currency reserves. Especially into Euros and Yen.

    The USD could become utterly worthless sometime this decade, or tomorrow morning. The US deficit is not sustainable, that is why you are hearing of motions towards a new Bretton Woods system from the main creditors of US debt.

  5. I was thinkin this thread would be a total buzzkill, thanks for proving me wrong.
  6. It can happen anywhere where the money supply is controlled my men, and not markets.

    Our monetary policy is run by unelected technocrats. Ben Bernanke was re-appointed even though it was his policies that contributed to the housing bubble. The state has ensured economic ignorance of the populous, and this is how they can continue to rob us of our purchasing power and nobody cares.

    As for economic collapses, you aint seen nothing yet.
  7. People won't wake up, they think money comes from money heaven. When the rug gets pulled and they have lost everything, they might start asking questions haha you know its true

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