sky high inflation coming?
- Thread starter zdreg
- Start date
You're assuming that wages and employment will remain "firm".
I LOLed at this. Is Zero Hedge ever right about anything. Its good to read if you're depressed. They have been bearish since they started the blog -- 2009 I think.
Gold will continue to collapse until the next Wall Street Crash.
Anyway there is nothing anyone can do to prevent the oncoming Deflation that is coming. The Sovereign Debt Implosion is coming to the west probably in the next 2 years just like the 1931 collapse of Creditanstalt. It will really be ugly when that happens. Most likely the US (and Europe) will see massive unemployment probably like the last Great Depression.
Sounds as if QE5 will be required to fix it.
Deflation and helicopters cannot co-exist.
https://www.google.com/search?q=ima...licopter-ben-bernanke-animated-gif%2F;350;245
Deflation and helicopters cannot co-exist.
https://www.google.com/search?q=ima...licopter-ben-bernanke-animated-gif%2F;350;245
We are already long in the liquidity trap phase of too much debt. Look at what happened in Japan with 1 quadrillion yen QE and Japan started with a massive trade surplus unlike the US due to the Triffin Dilemma. We have been in deflation for a long time already. Therefore they can co-exist since the helicopter has a transmission problem. Does anyone see the inflation that "they" expected when central banks began helping out the economy? So far, it appears that the leaders fiddle while Rome burns.
The Fed tried to unload their twisted bonds back into the market and the rates spiked last year. So there are only two ways out now and they picked the most palatable way. Quelle surprise. If the FED expected QE would work, would they have aimed for the environment we experience today?
If the USD stops being the world reserve currency, then hyperinflation could come to the US. Hyperinflation needs more than just printing money however IMO. The fall of Rome began when the barbarians started winning in the same region as they are winning today and for the same reason - overextension. It just took a long time until a barbarian ruled in Rome. Doubtless the citizens of Rome never thought it could happen to them, when the wealthy controlled the senate in Rome. They were invincible - until they weren't.
You're assuming that wages and employment will remain "firm".
Recessions and Depressions have happened since the dawn of civilization. There is nothing different about this one?
1) The amount of debt that has to be repudiated will be the biggest ever and make for a proportionately slower "recovery" afterwards.
2) Sound familiar?
There is no correlation between standard of living and nominal price levels.