Deflation followed by hyperinflation is coming.

Discussion in 'Economics' started by KINGOFSHORTS, Jul 20, 2010.

  1. If QE 1 didn't work, why should QE2?
     
    #11     Jul 21, 2010
  2. bat1

    bat1

    A little deflation followed by inflation.

    which means the rich will keep getting richer
    and the poor will just keep getting poorer

    nothing more then a cycle of ups and downs
    :D
     
    #12     Jul 21, 2010
  3. http://www.nytimes.com/2010/07/22/business/22fed.html?src=mv

    Looks bad,I see the number of unemployed Americans increasing, and Obviously the FED is holding back but I see a worse outlook than what Bernanke is trying to insinuate.

    The problem with a Liquidity Trap is 0% interest is not going to help, Only thing you will get out of it is a Carry trade and no further growth.
     
    #13     Jul 21, 2010
  4. zdreg

    zdreg

    hyperinflation is sure to come because bankrupt governments and nations can hide their bankrupt (pun) policies.
     
    #14     Jul 21, 2010
  5. tututu

    tututu

    deflation will benefit countries like china and india so start investing in those countires if you think deflation is coming..
     
    #15     Jul 21, 2010
  6. Looking at things, Hyperinflation will probably hit around 2014.
     
    #16     Aug 2, 2010
  7. zdreg

    zdreg

    why not 2013? why not 2012?
    __________________________
    bimarpradana


    Registered: Jul 2010
    Posts: 11


    07-21-10 10:50 AM

    the inflation can make the dollar stronger,,,

    spoken like the finance minster of argentina or brazil in yesteryears when inflation was running at 50%+ on its way to 100%+

    zdreg
     
    #17     Aug 2, 2010
  8. We need hyperinflation to get us out of this mess, We need direct stimulus checks to each and every person in the USA, we can also make it in terms of vouchers to only buy material goods like clothing, tech items, rent payment,etc so people dont put it into their bank acct.


    This is the only way, after that we can worry abt the hyperinflation, but first we need the poison to counteract the illness.
     
    #18     Aug 2, 2010
  9. zdreg

    zdreg

    "only way"

    can you provide any historical examples to support your hypothesis?
     
    #19     Aug 2, 2010
  10. The banks with negative equities eat taxpayers/fed cash to capitalize themselves. They do not let it pass to the economy, as they most likely engage in bringing their equity from negative values closer to zero using the cash coming from deposits and from the Fed printing press.

    Why does the government not use the new money (matched by funds from other investors) to build a fresh new bank for each bank that has problems. After it is done, the bank that has negative equity is then taken over, and the equity of shareholders and bond creditors in that bank is wiped out.

    The government will then create fresh new healthy banks, and clean the system from bankrupt banks.

    It would cost less than a fraction of what they have spending doing so far, and the benefit will be much larger.
     
    #20     Aug 2, 2010