Could the Weimar Hyperinflation Happen Again in America?

[N Rothschild]

wallstreet hero no offense but i don't think you understand what is actually happening at the moment. as i have already said you cant even compare Germany with the current situation as they had issued their debt in a foreign currency which was there downfall...

as far as i can see every person i speak to who is seriously knowledgeable on the situation is saying deflation, it is only those with a loose understanding of economics crying about inflation..not gona happen.

 

[N Rothschild]

are you joking or what

fiat money is expanding at a never seen rate before, whats these reckless loans, bailouts, stimulus packages.

all this money right now is with the banks when it gets to the public inflation will rise so fast your pants will fall down. gold will obviously rise with it,
this will happen most likly in 2010-11 or maybe into 2012

not anymore its not, we have seen the era of expanding at a never seen rate before..governments printing money is not the only way money is created..money is created threw the issue of new debt with the fractional reserve system

 

[N Rothschild]

yes and it will be lent at some stage, demand will come when banks lower their interest rates and deposits.
it doesnt matter if the public is in debt they always have been as their brainless and humans are greedy by nature and thats why they have become slaves to bankers.

the money is allready made, a fresh set of trillons and trillions of dollars have entered the us system in the last year.

like i said it will take about a year or two before things settle down and banks start lending like crazy again.

the money supply and debt arnt the same thing..there is 11 trillion in mortgages outstanding in the us (roughly) how's that work with 2 trillion in the money supply huh? :smart:

 

[squall321]

Of course they could tie it to some commodity, but how would they back that up?

it is tied to a commodity - oil

they back it up with the big guns
anyone that tries to change the arrangement, gets invaded

 

[poborsky]

So you are positing that recession follows inflation?

I believe that the current situation is going to lead to an inflationary depression.

Inflation is govt policy. The public have been brainwashed into believing that deflation is a bad thing, because it seems easier to pay down debt with inflated currency. The compounding effect of inflationary policy eventually leads to the destruction of wealth as business is destroyed and the responsible in society find their savings and pensions becoming worthless.

 

[Atilla]

When I was a young lad I always wondered why UFO's were only sighted in the USA and no other country???

People see what they want!



So you print loadsa money and you think you can meet your demand to prevent inflationary pressures... I don't think so based on past 20 years manufacturing performance.

That demand will be fullfilled from / by IMPORTS. Back to square one - BoP defecit balloons - budget defecit balloons - dollar falls - more inflationary pressure. Twin defecits rolls on down route 66...

Then China smells the coffee wakes up one morning and says "you fat lazy Sam now pay mi in Euro or I no supply you!!!"

Eventually when the US has to buy oil in Euros - it will truly wake up. Oil producing countries like Venezuela and Iran already trumpeting this along with Iraq before. Especially when the dollar collapses against the Euro and they find out fuel has doubled in price.

Perhaps then the US may invade Iran or Venezuela as obviously it will be in its national interest. How long can the world and the US maintain the dollar?


Some people simply don't see it.

Some people are more likely to see UFOs than reality. Only a matter of time...

 

[N Rothschild]

i cant ever see the dollar being replaced aslong as the us military draws breath

 

[poborsky]

it is tied to a commodity - oil

they back it up with the big guns
anyone that tries to change the arrangement, gets invaded

Yes this is true. The leaders of the USA understand the exponential factor when it comes to the use of oil. Maybe Iran are the next country that needs to be liberated from a tyrannical dictator.

 

[GFSignals]

Yes this is true. The leaders of the USA understand the exponential factor when it comes to the use of oil. Maybe Iran are the next country that needs to be liberated from a tyrannical dictator.

The point is, that Iran isn't a country, which is easy to crush down at the moment. Russia and China are interested in partnership with Iran, so they will certainly try to prevent it from possible aggression. But on the other hand, Iran suffers from internal contradictions, which may be used by some countries for their issues. Or maybe that contadictions are the result of some countries' activities... Who knows...:innocent:

 

[montmorencyt2w]

May be of interest:

And next for Britain, the semi-slump | David Blanchflower | Comment is free | The Guardian

 

[Atilla]

May be of interest:

And next for Britain, the semi-slump | David Blanchflower | Comment is free | The Guardian

Interesting post MontMorency - as Blanchflower is one of the few economists who got the extent of the recession and depression before anyone else voting for monetary relaxation.

Whilst I concur with his views there are some very serious structural imbalances.

1. Aging popullation - means people aren't producing sufficiently to replace those dying
2. We have a net migration out of the UK in terms of brain drain
3. We have skewed distribution of wealth - in the hands of ******s who buy luxery items imported from abroad
4. We have diminishing active young popullation with no money = funds to invest
5. We have a decimated manufacturing industry
6. An effed up financial sector full of fat ******s who get rewarded for failure
7. We now have a debt burden that can only be paid by further running down services and raising taxes which the many poor sector of society will have to pay
8. We have an impending pension and health crises to say the least
9. We are fighting a war we cannot win
10. We have Gordon Brown for prime minister who has put an end to boom and bust...

We'll soon be rid of the old Brown **** and get some new hot **** in Cameron.

**** happens all the time.

 

[WallStreetHero]

wallstreet hero no offense but i don't think you understand what is actually happening at the moment. as i have already said you cant even compare Germany with the current situation as they had issued their debt in a foreign currency which was there downfall...

as far as i can see every person i speak to who is seriously knowledgeable on the situation is saying deflation, it is only those with a loose understanding of economics crying about inflation..not gona happen.

who are you, einstein, i dnt think anyone cares if you said it or not. LOL

i am not comparing the current crisis with germanys, all im saying is that we will have hyperinflation which is inevitiable. it takes common sense to figure out every new dollar printed brings in a decline the the dollar and theres been a massive spike recently.

i dnt know what you call knowledgeable on economics, may only people who agree with you, but looking at all the people who have the best track records and pridicted the crisises, (jim rogers, marc faber, peter schiff) they are all talking about two things and thats depression and hyperinfaltion, just like they were talking about a financial crisis in the last 5 years and everyone made a laught of them,
people talking about a recovery are the ones with a loose understanding of economics cause they have never got anything right in there lives,

 

[WallStreetHero]

not anymore its not, we have seen the era of expanding at a never seen rate before..governments printing money is not the only way money is created..money is created threw the issue of new debt with the fractional reserve system

exactly and that just expands the money supply even more heading to hyperinflation

 

[WallStreetHero]

the money supply and debt arnt the same thing..there is 11 trillion in mortgages outstanding in the us (roughly) how's that work with 2 trillion in the money supply huh? :smart:

there is more debt then money, thats how messed up the whole system was, it was corrupted.

 

[N Rothschild]

 

[poborsky]

"Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation." Ben Bernanke.

 

[N Rothschild]

http://fraser.stlouisfed.org/docs/meltzer/fisdeb33.pdf

seems everyone who is touting inflation is merely going by the formula of printing money = inflation..without even taking anything else into consideration.

 

[WallStreetHero]

genics, i think you need to take basic economic lessons if you want to debate this further.

 

[Mathemagician]

wallstreet hero no offense but i don't think you understand what is actually happening at the moment. as i have already said you cant even compare Germany with the current situation as they had issued their debt in a foreign currency which was there downfall...

as far as i can see every person i speak to who is seriously knowledgeable on the situation is saying deflation, it is only those with a loose understanding of economics crying about inflation..not gona happen.

As far as I can see every person you speak to who is saying deflation you decide is seriously knowledgeable on the subject, and every person you speak to who says inflation you decide must have a loose understanding of economics.

 

[N Rothschild]

genics, i think you need to take basic economic lessons if you want to debate this further.

ok..so i guess irving fisher needs a lesson to, or are you just going to ignore that bit completely, to go with your well rounded argument?