AuthorTopic: Hyperinflation or Deflation?  (Read 124900 times)

Offline Surly1

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Re: 💸 Why Did All this Money-Printing Not Trigger Massive Inflation?
« Reply #630 on: October 11, 2018, 06:29:42 AM »
If they can cover their nut, working stiffs will spend the rest, at least here in the US. Savings is not that ingrained in our culture. I think there has to be a surplus for price inflation to take off. If food and rent and gas are manageable, then there is surplus cash that chases non-essentials and status-reinforcing higher end goods.

In the recent past, all the surplus flows to the rich, who don't spend any more than usual when their "pay" goes up. The hoard money or buy assets.

I think you have this right, or at least, I agree with you, to the extent that I understand it.

Your point about savings is true for the last two generations. I remember the people of my parent's generation who had lived through the Great Depression. and were frugal to the extreme. Saved everything from coffee cans to string. "You never know when you're going to need this."

I also remember the Carter years of hyperinflation and 13 per cent mortgages, when it made good sense to get into debt because you'd pay it back with cheaper dollars. That's the "reality" that greeted my young adulthood. (Now I wonder of that too wasn't a bankster manipulation.)

In terms of the opportunity get poorer, see Barbara Ehrenreich, "Nickled and Dimed." Payday loans are just a part of a serve landscape designed to extract FRNs from the poorest in our culture. Being poor is hard, and as we've discussed here in other threads, TPTB wrks overtime to make damned sure you can't live independent of the grid. And as you see in the article RE posted about homelessness, as soon as an employer learns you're homeless, you lose your job. We've covered all the exits.

As for Yuan/SDRs and gold, I can't even spell those. I will leave that to you and GO, and much enjoy the discussion.
« Last Edit: October 11, 2018, 08:15:17 AM by Surly1 »
"It is difficult to write a paradiso when all the superficial indications are that you ought to write an apocalypse." -Ezra Pound

Online Eddie

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Re: Hyperinflation or Deflation?
« Reply #631 on: October 11, 2018, 06:31:51 AM »
The REAL advantage of US dollar hegemony is that dollar inflation means that foreigners pay off our national debt through inflation.

Because austerity is not politically popular, the government/bankster collusion to cause inflation is the primary way we deal with deficits over the long haul. We (the banksters) devalue the dollar to pay off the national debt with cheaper dollars. This is at the heart of the unholy alliance between the US federal government and the banking cabal.

With the foreigners not needing to get dollars to pay their debts, that means dollar inflation effects will be felt primarily here, and not world wide.
« Last Edit: October 11, 2018, 06:34:52 AM by Eddie »
What makes the desert beautiful is that somewhere it hides a well.

Online Eddie

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Re: Hyperinflation or Deflation?
« Reply #632 on: October 11, 2018, 06:42:08 AM »
GO is correct that the balance of world financial power has undergone a shift from West to East.

This will have major effects over time. Figuring out how this will affect regular people here in America is something I'd like to know about before it gets to be widely understood. Forewarned is forearmed, as they say.

RE has a good mind for this stuff. I wish he were more interested in parsing it out. I understand that it doesn't make much difference to him personally. I've read two of Rickard's books. The new one comes out at the end of the month. He seems to have gotten much of the puzzle figured out.

However, he is a China bear, like RE. China is due for a major deflationary event. How this affects their currency machinations is not something I have figured out yet.
What makes the desert beautiful is that somewhere it hides a well.

Online RE

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Re: Hyperinflation or Deflation?
« Reply #633 on: October 11, 2018, 07:55:42 AM »
RE has a good mind for this stuff. I wish he were more interested in parsing it out. I understand that it doesn't make much difference to him personally. I've read two of Rickard's books. The new one comes out at the end of the month. He seems to have gotten much of the puzzle figured out.

However, he is a China bear, like RE. China is due for a major deflationary event. How this affects their currency machinations is not something I have figured out yet.
I'm kind of overwhelmed with projects right now, I've got 2 of my own articles I'm working on plus editing articles of 2 other people.  Then I am travelling down to the lower 48 next week to finish the Tombstone and I need to get my  Capsules ready to place in the Secret Chambers, which entails getting together my seeds, spores and Tardigrades into their own capsules that fit inside the larger capsule, as well as my DNA, wrtings and photographs.  I'm also stuck cleaning the digs on my own because the manager here who promised she would help turned out as unreliable as the taxi driver's wife and made appointments and didn't show up.  In addition I had to make arrangements to get my crippled ass down to Anchorage for the flight and then again right after that for my latest roto-rooter job.  So doing econ analysis is not high on my priority list at this time.  Thanks for the props though.

RE
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Offline Surly1

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Re: Hyperinflation or Deflation?
« Reply #634 on: October 11, 2018, 08:18:39 AM »
GO is correct that the balance of world financial power has undergone a shift from West to East.

This will have major effects over time. Figuring out how this will affect regular people here in America is something I'd like to know about before it gets to be widely understood. Forewarned is forearmed, as they say.


I'd like to see you or. GO try to unwind that. You both have some real beans at stake, compared to us peasants. Nevertheless, I'd like to avoid having the 401K that became a 201K in 2008 become a K.
"It is difficult to write a paradiso when all the superficial indications are that you ought to write an apocalypse." -Ezra Pound

Online RE

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💸 Most Americans live paycheck to paycheck
« Reply #635 on: December 17, 2018, 12:57:21 AM »
https://www.cnbc.com/2017/08/24/most-americans-live-paycheck-to-paycheck.html

Most Americans live paycheck to paycheck


    Nearly 10 percent of those making $100,000 or more say they can't make ends meet.
    Overall, most workers said they are in debt and many believe they always will be.

Jessica Dickler   | @jdickler
Published 10:15 AM ET Thu, 24 Aug 2017 Updated 8:17 AM ET Wed, 30 Aug 2017 CNBC.com
      
   
      
   
      
   
      
   
      
Stressed couple reviewing documents
Why a six-figure income is not enough for many in the U.S. 
11:45 AM ET Tue, 18 July 2017 | 01:18

No matter how much you earn, getting by is still a struggle for most people these days.

Seventy-eight percent of full-time workers said they live paycheck to paycheck, up from 75 percent last year, according to a recent report from CareerBuilder.

Overall, 71 percent of all U.S. workers said they're now in debt, up from 68 percent a year ago, CareerBuilder said.

While 46 percent said their debt is manageable, 56 percent said they were in over their heads. About 56 percent also save $100 or less each month, according to CareerBuilder. The job-hunting site polled over 2,000 hiring and human resource managers and more than 3,000 full-time employees between May and June.

Most financial experts recommend stashing at least a six-month cushion in an emergency fund to cover anything from a dental bill to a car repair and more if you are the sole breadwinner in your family or in business for yourself.

While household income has grown over the past decade, it has failed to keep up with the increased cost-of-living over the same period.

Even those making over six figures said they struggle to make ends meet, the report said. Nearly 1 in 10 of those making $100,000 or more said they usually or always live paycheck to paycheck, and 59 percent of those in that salary range said they were in the red.
SAVE AS MANY AS YOU CAN