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Hyperinflation
- Thread starter Bestmiler
- Start date
Quote from jprad:
Unfortunately, how the Fed prints money doesn't work like that or we'd have never had a national debt in the first place.
It could just as easily, but fortunately they haven't done it up to this point. It will take a lot to get credit moving again in this environment, and increases the probability the fed will need to print their way out of this.
Quote from scriabinop23:
It could just as easily, but fortunately they haven't done it up to this point. It will take a lot to get credit moving again in this environment, and increases the probability the fed will need to print their way out of this.
They can't simply print money.
Seriously, you need to go to the Fed's web site and read up on how the process works.
Quote from jprad:
They can't simply print money.
Seriously, you need to go to the Fed's web site and read up on how the process works.
Many people who follow the Fed's balance sheet now acknowledge the Fed is engaged in "quantatitive easing". Do you not consider this "simply printing money"?
Quote from jprad:
They can't simply print money.
wrong. they are already doing it
http://www.newyorkfed.org/research/directors_charts/itable_18.pdf
It looks like they just needed to change their outlook on inflation first, now M1 growth is soaring, they are only partially sterilizing
Quote from jordanf:
Many people who follow the Fed's balance sheet now acknowledge the Fed is engaged in "quantatitive easing". Do you not consider this "simply printing money"?
If you're referring to the broad money supply, which is only available to commercial banks via reserves, yes, the Fed is quantitatively easing at tremendous amounts.
But, scriabinop23 was referring to the national debt, which relates to the narrow money supply; currency.
Totally different and no, the Fed is not engaged with quantitatively easing that part of the money supply.
The Fed's constraint with increasing the currency is based on the fact that the actual process involved is that when the Fed needs to increase the amount of currency in circulation it must place an order with the Treasury to print the notes and buy them from the Treasury for the cost of printing plus the face value of the note itself. That purchase is usually done via a collatoral pledge of US treasury securities, bonds or notes, that the Fed already owns.
The key is that the securities must have been previously issued since the Fed cannot create them, the Treasury does and the constraint on how many securities can exist is with Congress via the national debt ceiling.
Quote from Daal:
wrong. they are already doing it
http://www.newyorkfed.org/research/directors_charts/itable_18.pdf
It looks like they just needed to change their outlook on inflation first, now M1 growth is soaring, they are only partially sterilizing
M1 and M2 include a host of broad money supply factors.
But, the national debt is relative to the currency alone, which is the narrow money supply; M0.
USA cannot default, nor hyperinflate.
If that happens, then no oil to run anything, in particular to run farms.
Then mass starvation will follow and food price shoots to the moon.
To overcome this, US will have to use its years of investment in military to "convince" oil producers and consumer goods producers to contribute to the US. This is immoral and impractical:
War cost even more materials and man power, resulting in further inflation.
So, default or hyperinflate is a sure way to meet the fate of USSR.
How to avoid defaulting or inflation?
Sell assets to raise $$ to payoff the debt.
1. downsize the pentagon, sell 6 of the 12 aircraft carrier fleets. the remaining 6 fleets is more than enough to protect US.
2. Sell Alaska. Hey US bought this stock from Russia. Time to sell it for a handsome profit.
3. Seize Canada and welcome them to join the union. Sell 1/2 of it to other contries to cover the debt.
4. The best way is to increase the spending on R&D so that some new industries can emerge. The new revenue and exports will payoff the debt. One promising industry is the renewable energy industry.
If we can achieve a breakthrough, then
we do not have import much oil and we can export the products. This will surely lead US out of the hole it is in now. But breakthroughs in new technology are hard to predict......
5. Let GM bankrupt so that GM etc can become competitive again. It is not right that auto assembly line worker is conpensated by $78/hr but a Ph.d only gets about $50k/year.
If that happens, then no oil to run anything, in particular to run farms.
Then mass starvation will follow and food price shoots to the moon.
To overcome this, US will have to use its years of investment in military to "convince" oil producers and consumer goods producers to contribute to the US. This is immoral and impractical:
War cost even more materials and man power, resulting in further inflation.
So, default or hyperinflate is a sure way to meet the fate of USSR.
How to avoid defaulting or inflation?
Sell assets to raise $$ to payoff the debt.
1. downsize the pentagon, sell 6 of the 12 aircraft carrier fleets. the remaining 6 fleets is more than enough to protect US.
2. Sell Alaska. Hey US bought this stock from Russia. Time to sell it for a handsome profit.
3. Seize Canada and welcome them to join the union. Sell 1/2 of it to other contries to cover the debt.
4. The best way is to increase the spending on R&D so that some new industries can emerge. The new revenue and exports will payoff the debt. One promising industry is the renewable energy industry.
If we can achieve a breakthrough, then
we do not have import much oil and we can export the products. This will surely lead US out of the hole it is in now. But breakthroughs in new technology are hard to predict......
5. Let GM bankrupt so that GM etc can become competitive again. It is not right that auto assembly line worker is conpensated by $78/hr but a Ph.d only gets about $50k/year.
Quote from jprad:
M1 and M2 include a host of broad money supply factors.
But, the national debt is relative to the currency alone, which is the narrow money supply; M0.
There is nothing to stop further debt creation and monetization to pay for all future obligations/deficits. And that has nothing to do with M0. (every year we are in budget deficit, pay the deficit portion with a new treasury bond float bought for by the fed with money newly created - no physical printing necessary.)
Yes.. I see all of what you said happening... "Change is Coming"
Actually hello inflation here we come. If you got a 10 year outlook, buy commodities now.
Actually hello inflation here we come. If you got a 10 year outlook, buy commodities now.
Quote from ProfitMania:
USA cannot default, nor hyperinflate.
If that happens, then no oil to run anything, in particular to run farms.
Then mass starvation will follow and food price shoots to the moon.
To overcome this, US will have to use its years of investment in military to "convince" oil producers and consumer goods producers to contribute to the US. This is immoral and impractical:
War cost even more materials and man power, resulting in further inflation.
So, default or hyperinflate is a sure way to meet the fate of USSR.
How to avoid defaulting or inflation?
Sell assets to raise $$ to payoff the debt.
1. downsize the pentagon, sell 6 of the 12 aircraft carrier fleets. the remaining 6 fleets is more than enough to protect US.
2. Sell Alaska. Hey US bought this stock from Russia. Time to sell it for a handsome profit.
3. Seize Canada and welcome them to join the union. Sell 1/2 of it to other contries to cover the debt.
4. The best way is to increase the spending on R&D so that some new industries can emerge. The new revenue and exports will payoff the debt. One promising industry is the renewable energy industry.
If we can achieve a breakthrough, then
we do not have import much oil and we can export the products. This will surely lead US out of the hole it is in now. But breakthroughs in new technology are hard to predict......
5. Let GM bankrupt so that GM etc can become competitive again. It is not right that auto assembly line worker is conpensated by $78/hr but a Ph.d only gets about $50k/year.