Folks right now I would say deflation is more likely than Hyperinflation. Despite the fact that trillions of $$ has been pumped into the economy, we are not seeing any inflation at all on the other hand deflation looks more likely as fed is keeping interest rate at record low. Lots of factories and businesses still have a lot of excess capacity which have been kept in use with stimulus measures and as the simulus wears off, these businesses will need to cut excess capacity otherwise markets will be flooded and excess supply will bring down prices.
Therefore, in the short to medium term there is a higher risk of deflation and as the economy recovers over the long term then we might see inflation. However, since recovery is very slow, the fed will have ample time to withdraw stimulus and adjust monetary and fiscal policies to avoid hyperinflation.
Remember people..The Fed/Treasury is only responsible for 5% of the money supply in the economy. The other 95% is banks issuing loans through the fractional banking system. that said, they haven't been lending for over a year now because they are insolvent and are hoarding it. So until they start lending at an accelerated clip. There will be no inflation or hyperinflation. Deflation or stagflation is more probable.
8:14 I agree 100% with you, Banks are not lending at the same rate before the crisis. All the Trillions stimulus spent only a small fraction made its way into the real economy and on top of that, Americans have increased their savings rate which will further contribute to Deflation and not hyperinflation.
Bad information in these comments. The only way to combat inflation is to raise interest rates, not hold them at zero forever. Holding them at zero forever is the big clue that the jig is up, and the sudden rise in home prices and 'value' since 2002 is purely inflationary. Eventually, that inflation will move into everything else, which is already happening and the government is lying about it by fugding the way they measure inflation.
Low interest rates are always inflationary. Zero interest rate means the eventual death of the currency.
Americans have not increased their savings rate one iota. On the contrary, Americans have reduced their spending because they have no money to spend. Banks do not create money through fractional reserve lending. Banks cannot print money, only the Fed can do that. Banks borrow money from the Fed which lends at zero interest rate (as of this printing) and then lend to the people to the tune of 5% cash reserves to back the 95% they've loaned out.
They will never see it back.
All the banks are completely insolvent. They are not lending because they know the JP Morgan/Goldman Sachs wolf is loose devouring any and all financial institutions they can.
Notice how the government Seized Meryl lynch and gave it to Bank of America. Notice how the government seized Bear Stearns and gave it to JP Morgan. Notice that Bank of America is just being used as a proxy by JP MOrgan until such time that JP MOrgan will seize Bank of America.
I have long said that by the time this process of consolidation of Rockefellor monetary power is complete, the only bank left standing will be JP MOrgan/Chase.
I am not wrong.
Mish and the other deflation proponents are correct. We will have deflation, right up until the Obama administration feels they have to repeal the price controls on Commodities because 'it interferes with a free market'. Then you will see commodities go sky high, and instant hyperinflation across the board.
I agree, but want to make it clear that deflation would normally play out prior to hyperinflation (as in what we are seeing now).
Companies are selling off their inventories at below cost in order to pay rents and employees. Companies are dying everywhere right now. As the previous fast-speed video here stated, the media does not want to believe things are really, really bad. It is not in their interests. They want you to be a happy holiday shopper.
Yes, deflation first, but don't kid yourselves, super inflation is coming in the next couple years. When the fractional reserve banks are instructed to open the floodgates and dilute the money supply to astronomical levels all at once.
What is happening is not by accident. Our owners have this planned out to every last detail and date; just as they did in '29.
The dollar is surely doomed, but it will crash at a time of the bankster's choosing and not before. Maybe per another false flag or the like. When we invade Iran to kill millions of innocents for Israel that would surely destroy what is left of our economy.
Now is the time to be converting fiat money into THINGS. If you are not into precious metals or the like, fine. Just bargain hunt for items that will be of value but are at a discount now. Generators, tools, food, survival items, etc.
Instead of leaving $10k sitting in a CD earning 1.5%, get that money the hell out of there and make a rational purchase of someTHING.
You know that whether it be next week or five years from now why risk having your savings in a doomed currency. Everything you have saved and worked for will go 'poof.' You will wake up one day to a locked down bank.
I am sure there were many intelligent investors in Argentina who saw it coming in '99-'2000 and bought THINGS.
If you have all you need and you are looking to 'save' - don't save with dollars, CDs, savings, IRAs (awful). Abandon the banksters and their crooked system of wage debt slavery. Their greatest power play ever devised is coming to America. EXACT same players, names, banks, and organizations that did it to Argentina. Same tactics. Nothing creative or new. Just what works.
Get things. I recommend silver bullion or coins. SomeTHING real.
9:19 a few mistakes in your comments, the fed is keeping interest low to avoid deflation, Interest will increase when there is inflation but for now deflation is more likely so that is why interest rates are near zero.
You comment on savings is totally wrong as 90% of Americans are still earning wages and are saving a lot. In fact savings is at a 24 yrs high. Inform yourself before posting rubbish:
Hyperinflation is still very far away and deflation is more likely. Simple example just look at one of the article posted on this blog:
Another Large Retail Store Closing http://thecomingdepression.blogspot.com/2009/10/another-large-retail-store-closing.html
In the article above it is mentioned that the store closing is going to liquidate its stocks (for thick heads: meaning prices going down) and the same thing risk happening to other stores...that is a sign of deflation coming and not hyperinflation
Our owners still have a use for this Empire they designed from day one.
When our usefulness has expired, if we ever stop fighting their for-profit wars and buying their crap, they will push the button and do a controlled demolition on us.
9:19 you need to watch "Money as Debt" on you Tube. It is the issuance of debt that causes the multiplier effect on the money supply. For every $1000 the Fed hands the bank. The bank can turn into $10,000 at a 9:1 fractional lending(which is low). That money is then put into another bank which has to keep $1000 and then loan out $9000. This process goes unabated as long as the money is kept in the banking system and not someone's mattress until the original $1,000 out of nothing from the Fed turns into $100,000. That is why the fractional reserve system is serious flawed as is usury. Because it sucks the life out of REAL productive activity and puts it in a inert activity like interest accumulation. Eventually, the system has to purge debt levels that get way to high as a result and the REAL economy has to contract. Moreover, usury takes ownership of the real productive assets of the planet as collateral for simple printing money out of nothing which also dirtorts things furthur. This just so happens to be the biggest boom/bust cycle in the history of this planet right now yet we are told we recovered from it in 6 months...When it took 25 years to recover from the Great Depression.
10:16 my comment on savings is not totally wrong at all. It's actually quite right. Paying down debt is not 'savings', no matter what the MSM tries to spin it as. 90% of Americans are not still earning wages and saving 'lots', when
A. the real unemployment rate is already over 20% B. a majority of the those that are still employed do not earn a living wage (ie. minimum wage)
The MSM has tried to say that the reason for the large cutback in consumer spending is that consumers have turned to saving and being thrifty. I disagree. I think the reason we are seeing such a large cutback in consumer spending is an actual lack of money to spend in the first place combined with growing reluctance to use credit cards and growing bank restrictions on credit cards as well.
The rise in housing prices was inflation. The fed didn't raise interest rates then, they caused that inflation by keeping interest rates artificially low. They are still doing it.
There will be no hyperinflation. This is turning out to be exactly like Japan in the late 80's and 90's.
This doorknob has been predicting hyperinflation for a year or longer now. He loves his gold and all that, but he has been wrong for a long time and will continue that trend into the future.
We just exited the closest thing to hyperinflation we could get and that was when oil was $140/barrel and crappy homes in the middle of nowhere were $500k. I didn't hear anyone bitching about hyperinflation then. Instead people were talking about how strong the economy was.
Today, we are in a massive deflationary period, evidenced by low interest rates, house prices, lower gas prices (still need to be deflated more) and lower everything else (t.v.'s, cell phone plans, etc.).
If I were you today, I would sell gold as it will eventually be hit with the deflationary bug. Let Jim Sinclair ride into the sunset with his golden wagon, as the law of reversion to the means is chasing him and will eventually catch up.
7:44 you better understand what inflation is, because you and everyone else were taught TOTALLY WRONG. The cell phones, TV,s etc are actually inflationary. Take the Chris Martenson Crash course. #13 really explains it. Something many cannot ingest
I am inclined to agree with the poster who says we will have hyperinflation. Prices on all daily items is increasing in my neck of the woods. A few cents here a 10 cent jump here and after time the price is much higher than it as just a year ago today.
I am also aware that prices on non-essentials is falling because those products aren't selling as well anymore.
I do think we will see hyperinflation at some point in time. You can't print endless amounts of currency without destroying said currencys value. Eventually the rooster is coming home to roost. The dollar will be destroyed, it's only a matter of time.
We must all remember that our entire financial system is rigged. It's not real and it's definitely not a free market system. The entire system is controlled and manipulated in every way possible. That's why things don't add up or make sense. Eventually the whole charade will be exposed for what it is and it will crumble.
I heard this same rhetoric back in the 70's, late 80's, late 90's, early 2000's and today. Does anything really ever change? The government is corrupt, who cares. You can't do anything about it. Your gold won't save you.
It's the fact that there is corruption at every single level from the feds on down to your local city govt. A system that is corrupt in every fathomable way will soon fall.
Gold probably won't save anyone. But it will be of use in hard economic times since gold always holds value above that of fiat currency.
Hyperinflation might occur the same as it did in Weimar (well, that was an economic hit job on the poor old germans) when trillions of $US in overseas hands return home all at once.
With 70% of the world's assets fed reserve note denominated, there is plenty of scope for this. Threats and blackmail are probably the only thing keeping it from happening already.
I am waiting , the first crash, my area didnt change at all, still developing, 100s of restaurants, bars, niteclubs, shops, events,traffic, I think its gotten crazier, I thought we would go back to the 1990s , or 80s but were are no where near the 20's as people assumed.
I just listened to this on your YouTube channel. It was some amazing info. Thanks.
ReplyDeleteNice to more self sufficient than 99% of the lemmings being led to slaughter.
ReplyDeleteFolks right now I would say deflation is more likely than Hyperinflation. Despite the fact that trillions of $$ has been pumped into the economy, we are not seeing any inflation at all on the other hand deflation looks more likely as fed is keeping interest rate at record low. Lots of factories and businesses still have a lot of excess capacity which have been kept in use with stimulus measures and as the simulus wears off, these businesses will need to cut excess capacity otherwise markets will be flooded and excess supply will bring down prices.
ReplyDeleteTherefore, in the short to medium term there is a higher risk of deflation and as the economy recovers over the long term then we might see inflation. However, since recovery is very slow, the fed will have ample time to withdraw stimulus and adjust monetary and fiscal policies to avoid hyperinflation.
Remember people..The Fed/Treasury is only responsible for 5% of the money supply in the economy. The other 95% is banks issuing loans through the fractional banking system. that said, they haven't been lending for over a year now because they are insolvent and are hoarding it. So until they start lending at an accelerated clip. There will be no inflation or hyperinflation. Deflation or stagflation is more probable.
ReplyDelete8:14 I agree 100% with you, Banks are not lending at the same rate before the crisis. All the Trillions stimulus spent only a small fraction made its way into the real economy and on top of that, Americans have increased their savings rate which will further contribute to Deflation and not hyperinflation.
ReplyDeleteBad information in these comments.
ReplyDeleteThe only way to combat inflation is to raise interest rates, not hold them at zero forever.
Holding them at zero forever is the big clue that the jig is up, and the sudden rise in home prices and 'value' since 2002 is purely inflationary. Eventually, that inflation will move into everything else, which is already happening and the government is lying about it by fugding the way they measure inflation.
Low interest rates are always inflationary.
Zero interest rate means the eventual death of the currency.
Americans have not increased their savings rate one iota. On the contrary, Americans have reduced their spending because they have no money to spend.
Banks do not create money through fractional reserve lending. Banks cannot print money, only the Fed can do that. Banks borrow money from the Fed which lends at zero interest rate (as of this printing) and then lend to the people to the tune of 5% cash reserves to back the 95% they've loaned out.
They will never see it back.
All the banks are completely insolvent. They are not lending because they know the JP Morgan/Goldman Sachs wolf is loose devouring any and all financial institutions they can.
Notice how the government Seized Meryl lynch and gave it to Bank of America. Notice how the government seized Bear Stearns and gave it to JP Morgan. Notice that Bank of America is just being used as a proxy by JP MOrgan until such time that JP MOrgan will seize Bank of America.
I have long said that by the time this process of consolidation of Rockefellor monetary power is complete, the only bank left standing will be JP MOrgan/Chase.
I am not wrong.
Mish and the other deflation proponents are correct. We will have deflation, right up until the Obama administration feels they have to repeal the price controls on Commodities because 'it interferes with a free market'. Then you will see commodities go sky high, and instant hyperinflation across the board.
I agree, but want to make it clear that deflation would normally play out prior to hyperinflation (as in what we are seeing now).
ReplyDeleteCompanies are selling off their inventories at below cost in order to pay rents and employees. Companies are dying everywhere right now. As the previous fast-speed video here stated, the media does not want to believe things are really, really bad. It is not in their interests. They want you to be a happy holiday shopper.
Yes, deflation first, but don't kid yourselves, super inflation is coming in the next couple years. When the fractional reserve banks are instructed to open the floodgates and dilute the money supply to astronomical levels all at once.
What is happening is not by accident. Our owners have this planned out to every last detail and date; just as they did in '29.
The dollar is surely doomed, but it will crash at a time of the bankster's choosing and not before. Maybe per another false flag or the like. When we invade Iran to kill millions of innocents for Israel that would surely destroy what is left of our economy.
Now is the time to be converting fiat money into THINGS. If you are not into precious metals or the like, fine. Just bargain hunt for items that will be of value but are at a discount now. Generators, tools, food, survival items, etc.
Instead of leaving $10k sitting in a CD earning 1.5%, get that money the hell out of there and make a rational purchase of someTHING.
You know that whether it be next week or five years from now why risk having your savings in a doomed currency. Everything you have saved and worked for will go 'poof.' You will wake up one day to a locked down bank.
I am sure there were many intelligent investors in Argentina who saw it coming in '99-'2000 and bought THINGS.
If you have all you need and you are looking to 'save' - don't save with dollars, CDs, savings, IRAs (awful). Abandon the banksters and their crooked system of wage debt slavery. Their greatest power play ever devised is coming to America. EXACT same players, names, banks, and organizations that did it to Argentina. Same tactics. Nothing creative or new. Just what works.
Get things. I recommend silver bullion or coins. SomeTHING real.
9:19 a few mistakes in your comments, the fed is keeping interest low to avoid deflation, Interest will increase when there is inflation but for now deflation is more likely so that is why interest rates are near zero.
ReplyDeleteYou comment on savings is totally wrong as 90% of Americans are still earning wages and are saving a lot. In fact savings is at a 24 yrs high. Inform yourself before posting rubbish:
http://www.bloomberg.com/apps/news?pid=20601110&sid=aUfimDwmMoAQ
Hyperinflation is still very far away and deflation is more likely. Simple example just look at one of the article posted on this blog:
ReplyDeleteAnother Large Retail Store Closing
http://thecomingdepression.blogspot.com/2009/10/another-large-retail-store-closing.html
In the article above it is mentioned that the store closing is going to liquidate its stocks (for thick heads: meaning prices going down) and the same thing risk happening to other stores...that is a sign of deflation coming and not hyperinflation
Our owners still have a use for this Empire they designed from day one.
ReplyDeleteWhen our usefulness has expired, if we ever stop fighting their for-profit wars and buying their crap, they will push the button and do a controlled demolition on us.
http://groups.google.com/group/alt.politics/browse_thread/thread/1d0edc3af842c5af/14d24faf76a63231?lnk=raot&fwc=1
ReplyDelete9:19 you need to watch "Money as Debt" on you Tube. It is the issuance of debt that causes the multiplier effect on the money supply. For every $1000 the Fed hands the bank. The bank can turn into $10,000 at a 9:1 fractional lending(which is low). That money is then put into another bank which has to keep $1000 and then loan out $9000. This process goes unabated as long as the money is kept in the banking system and not someone's mattress until the original $1,000 out of nothing from the Fed turns into $100,000. That is why the fractional reserve system is serious flawed as is usury. Because it sucks the life out of REAL productive activity and puts it in a inert activity like interest accumulation. Eventually, the system has to purge debt levels that get way to high as a result and the REAL economy has to contract. Moreover, usury takes ownership of the real productive assets of the planet as collateral for simple printing money out of nothing which also dirtorts things furthur. This just so happens to be the biggest boom/bust cycle in the history of this planet right now yet we are told we recovered from it in 6 months...When it took 25 years to recover from the Great Depression.
ReplyDelete10:16 my comment on savings is not totally wrong at all. It's actually quite right.
ReplyDeletePaying down debt is not 'savings', no matter what the MSM tries to spin it as.
90% of Americans are not still earning wages and saving 'lots', when
A. the real unemployment rate is already over 20%
B. a majority of the those that are still employed do not earn a living wage (ie. minimum wage)
The MSM has tried to say that the reason for the large cutback in consumer spending is that consumers have turned to saving and being thrifty. I disagree. I think the reason we are seeing such a large cutback in consumer spending is an actual lack of money to spend in the first place combined with
growing reluctance to use credit cards and growing bank restrictions on credit cards as well.
The rise in housing prices was inflation. The fed didn't raise interest rates then, they caused that inflation by keeping interest rates artificially low. They are still doing it.
There will be no hyperinflation. This is turning out to be exactly like Japan in the late 80's and 90's.
ReplyDeleteThis doorknob has been predicting hyperinflation for a year or longer now. He loves his gold and all that, but he has been wrong for a long time and will continue that trend into the future.
We just exited the closest thing to hyperinflation we could get and that was when oil was $140/barrel and crappy homes in the middle of nowhere were $500k. I didn't hear anyone bitching about hyperinflation then. Instead people were talking about how strong the economy was.
Today, we are in a massive deflationary period, evidenced by low interest rates, house prices, lower gas prices (still need to be deflated more) and lower everything else (t.v.'s, cell phone plans, etc.).
If I were you today, I would sell gold as it will eventually be hit with the deflationary bug. Let Jim Sinclair ride into the sunset with his golden wagon, as the law of reversion to the means is chasing him and will eventually catch up.
7:44 you better understand what inflation is, because you and everyone else were taught TOTALLY WRONG. The cell phones, TV,s etc are actually inflationary. Take the Chris Martenson Crash course. #13 really explains it. Something many cannot ingest
ReplyDeleteLet's cut the crap.
ReplyDeleteEverybody print money, yay!
I am inclined to agree with the poster who says we will have hyperinflation. Prices on all daily items is increasing in my neck of the woods. A few cents here a 10 cent jump here and after time the price is much higher than it as just a year ago today.
ReplyDeleteI am also aware that prices on non-essentials is falling because those products aren't selling as well anymore.
I do think we will see hyperinflation at some point in time. You can't print endless amounts of currency without destroying said currencys value. Eventually the rooster is coming home to roost. The dollar will be destroyed, it's only a matter of time.
We must all remember that our entire financial system is rigged. It's not real and it's definitely not a free market system. The entire system is controlled and manipulated in every way possible. That's why things don't add up or make sense. Eventually the whole charade will be exposed for what it is and it will crumble.
I heard this same rhetoric back in the 70's, late 80's, late 90's, early 2000's and today. Does anything really ever change? The government is corrupt, who cares. You can't do anything about it. Your gold won't save you.
ReplyDeleteSigh.
ReplyDeleteIt's the fact that there is corruption at every single level from the feds on down to your local city govt. A system that is corrupt in every fathomable way will soon fall.
Gold probably won't save anyone. But it will be of use in hard economic times since gold always holds value above that of fiat currency.
ugghh..why is he smiling, what is so funny rich man?
ReplyDeleteHyperinflation might occur the same as it did in Weimar (well, that was an economic hit job on the poor old germans) when trillions of $US in overseas hands return home all at once.
ReplyDeleteWith 70% of the world's assets fed reserve note denominated, there is plenty of scope for this. Threats and blackmail are probably the only thing keeping it from happening already.
I am waiting , the first crash, my area didnt change at all, still developing, 100s of restaurants, bars, niteclubs, shops, events,traffic, I think its gotten crazier, I thought we would go back to the 1990s , or 80s but were are no where near the 20's as people assumed.
ReplyDelete