'It's Going to Be Inflation Everywhere:' Deputy 'Doom'

Discussion in 'Economics' started by WallStWhizKid, Mar 10, 2010.

  1. the question is; can the government afford deflation?

    how can you say they can't do much about it?
     
    #21     Mar 10, 2010
  2. No, they cannot afford deflation. What can they do about it? Exactly what they're doing right now.
     
    #22     Mar 10, 2010
  3. achilles28

    achilles28

    Pile up the debt, and then what?

    They can't do it forever, bud.

    We're running a 1.5 Trillion deficit, per year.

    Can't borrow and spend forever. You do realize US GDP is 75% dependent on consumption/spending, including Government spending, right?
     
    #23     Mar 10, 2010
  4. no, it's saying most everyone in this country is in debt, including the government, none of them make the level of income necessary to pay it back, either they default on it, or the system prints money to pay it back

    if they default on it, the dollar is fucked in one night, if they print money then the dollar will lose value based on the rate of inflation, this way they can hope there won't be a run on the dollar anytime soon

    it's obvious that either way the dollar is fucked, the question is which do you prefer; a slow but painful death or a sudden one?
     
    #24     Mar 10, 2010
  5. that's so cute, such a soft landing, specially after such a sudden turn in the economy, going from a developed country to a third world one in a matter of months, from only 5% unemployment to above 10% unemployment. oh, where is this country that such a soft landing takes place after a massive crisis that has not ended yet, oh I know, care bear world, is that where you live?

    [​IMG]
     
    #25     Mar 10, 2010
  6. S2007S

    S2007S

    No one believes its going to get ugly because they think that it already passed last year when they came in and saved everyone from the GDII. So as of right now everything is happy times once again, they think they saved our economy and the rest of the economies from a global market collapse, but all they really did was "buy" some more time.




     
    #26     Mar 10, 2010
  7. We should not forget that Roosevelt pushed gold prices up quite dramatically at the depth of the depression in order to induce reflation.




    1949 $40.50 1939 $35.00 1929 $20.67
    1948 $42.00 1938 $35.00 1928 $20.67
    1947 $43.00 1937 $35.00 1927 $20.67
    1946 $38.25 1936 $35.00 1926 $20.67
    1945 $37.25 1935 $35.00 1925 $20.67
    1944 $36.25 1934 $35.00 1924 $20.67
    1943 $36.50 1933 $32.32 1923 $20.67
    1942 $35.50 1932 $20.67 1922 $20.67
    1941 $35.50 1931 $20.67 1921 $20.67
    1940 $34.50 1930 $20.67 1920 $20.67
     
    #27     Mar 10, 2010