Quote from achilles28:
Why not evaluate the situation based on its merits? And not the historic performance of doom sayers?
All Countries are inflating the shit out of their currency and handing it over to banks.
Banks are withholding that cash from borrowers, thus fractional reserve expansion of money supply has not taken root. Nor has traditional product inflation, as money is hoarded.
If and when that debased money gets into circulation, exchange rates might stay current, but commodities and gold through the roof.
When banks start turning a profit, and quit hoarding, look out.
Thats my best guess.
Japan is a good micro-historical example. They inflated, but consumers were so debt laden, cheap money wasn't exploded through fractional lending. Further, many of their banking houses only recovered recently. Third, the effect on global inflation was pronounced. The carry-trade helped fuel asset inflation across global markets during 1990's and 2000.
Whatever happens this time, will be much larger by several orders of magnitude. And it can't be good.
There is no good that comes from bailouts and debasement. None.
So what happens next??
