“Bernanke’s & The G20's Secret Debt Solution”

[SNBthetrue]

so much word to express an opinion... it must be wrong !

 

[makloda]

The author of the article knowingly or unknowingly mixes public and private debt in the same bowl and thus draws completely unfounded conclusions.

 

[Stewenson133]

Quote from ByLoSellHi:


How? By systematically and progressively devaluing existing currencies, especially the U.S. dollar, and re-inflating ALL asset prices.

...many words just to say hyper-inflation?

 

[Ivanovich]

Quote from makloda:

The author of the article knowingly or unknowingly mixes public and private debt in the same bowl and thus draws completely unfounded conclusions.

I've never known a goldbug that does otherwise. I'm not surprised.

 

[jjf]

Leaving Gold aside (where is belongs) the guts of this threat is that G20 mental midgets hope to inflate their way out of the current mountain of debt at the expense of their currencies.

So what is new.
In a prolonged moment of weakness, all Politicians stubble upon this concept eventually.

Here is another similar idea. 1 ES point per day on 500 contracts will mean I can toss in my day job.

They are one and the same. Just short term irrational thinking.

jjf

 

[Ivanovich]

The only question I have is that if ALL of them devalue, then how does it result in devaluation?

 

[jprad]

Quote from Highterm:

How does a currency devaluation happen?

For example, i have my savings in Euros and if 'the powers that be' suddenly announce that the Euro will be devalued by, lets say, 50% overnight, how does this actually work in practice?

You can only do it overnight when the currency is backed by a physical asset, which is what Roosevelt did after the great gold confiscation.

It takes longer with fiat currencies. Read up on the Plaza accord when the dollar was devalued against the yen. Took about two years.

 

[makloda]

"The G20 has to inflate their way out of their debt mountain" = BS. There is no universal public debt problem among the G20.

Did the US also "inflate their way of their debt mountain" in the 50s?

Nope: Tax hikes worked their magic, just like they will over the next 20 years. Taxes = government income.

 

[jprad]

Quote from Ivanovich:

The only question I have is that if ALL of them devalue, then how does it result in devaluation?

Yes, all will be devalued to some degree, but not at the same rate. It's the relative devaluation to each other that matters.

 

[libertad]

Quote from Ivanovich:

The only question I have is that if ALL of them devalue, then how does it result in devaluation?

..................................................................................

This is an incredibly important point....

In other words ....an equal divisor amongst the total translates into "no change"....

The problem in this case is equal distribution of the dilution....

The tab is paid by those who did everything right....and the losers gain at their expense....

In deflation....those who did everything right win through lower prices....This is why deflation is good....and inflation "dilution" is bad....

It ain't right....

The govt. is deciding the winners and losers....not the market....