I think he has actually mentioned one or two times about that in his videos, too lazy to look it up right now though. I'm sure that peter schiff sees the printing of money to be the larger issue because if companies had been allowed to default instead of the government printing more money to bail them out then they wouldn't be able to get these massive loans to begin with.
Peter Schiff was Right.
- Thread starter achilles28
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I think he has actually mentioned one or two times about that in his videos, too lazy to look it up right now though. I'm sure that peter schiff sees the printing of money to be the larger issue because if companies had been allowed to default instead of the government printing more money to bail them out then they wouldn't be able to get these massive loans to begin with.
Your argument seems to be based on what you think governments want to do but it pays no attention to what they actually can do. Just how is money actually printed? How is this to be circulated? If we do succeed in creating inflation, how do we keep interest rates artificially low without stalling the money velocity? These are the question that you should focus on instead of repeating the mantra that printing money always leads to inflation.
Drivel!
I never said printing money always leads to inflation. And once the FED prints our deficit, money velocity is dead in the water. Inflation takes care of that.
We're headed for an inflationary depression. How exactly? Quantitative easing. The FED will extend it's "off balance sheet" programs to buy private debt. Then, just credit Government accounts outright to buy T-bills and finance the deficit.
Obviously, you haven't thought this through. You seem to think that if we somehow create inflation, everything will be okay. Not at all. We're done. Either way (inflation or deflation), debt levels are totally unserviceable. It will never get paid. That flushing process will take the better part of a decade to allow the economy to recalibrate. We're talking 30%+ unemployment. That's why we'll get inflation and a currency crisis. Because with a severe deflationary recession/depression, debt service payments, unemployment, and deficits go parabolic. Politicians won't have it. Neither will Americans. What other option is there? You tell me. I'd love to hear it.
We're done with. I agree with you. This recession will last a few more years until debt has been brought back to servicable levels. Your basic argument is that we'll have inflation because politicians want inflation:
"Because with a severe deflationary recession/depression, debt service payments, unemployment, and deficits go parabolic. Politicians won't have it. Neither will Americans. "
My basic argument is that yes, politicians want inflation. No, they won't be able to create it. We'll have a severe deflationary recession. It'll be even worse in China and other emerging markets though, they've heavily invested in overcapacity. They'll be forced to buy dollars in order to devalue their currency and to keep exporting.
The problem is you guys think that you're cleverer than the rest of the world. What exactly makes you think that everyone will want to buy te dollar if it means trading with a country that will only make their recession worse? No, they're going to go to China because they are not only buying gold but also they are looking for a way to actually dump the U.S dollars they have.
I seriously think this is just pure arrogance on your part to believe that everyone is going to play along with your plan. The only true ass-kisser the U.S has had are failed dictatorships and the U.K primeminister. The rest are either neutral or they hate America.
I seriously think this is just pure arrogance on your part to believe that everyone is going to play along with your plan. The only true ass-kisser the U.S has had are failed dictatorships and the U.K primeminister. The rest are either neutral or they hate America.
Honest question from a non economist:
What do you say to the argument that China and the rest of the developing world will start to consume more and pick up the slack of overcapacity when prices deflate to a level that a middle class will emerge in China/India? Too short term of a view?
If your economy is contracting rapidly due to overcapacity and slumping exports then the demand to pick up the slack won't be there. Governments will ofcourse try to create the demand through deficit spending and job programs. Governments around the world will do what they must do and can do to counter a deflationary recession, but the tools at their disposal are simply insufficient. We're dealing with a trend here that can't be reversed until debt levels decrease sufficiently.