We saw something similar in Turkey, 1982-2005. Their stock market went up over 2,000,000% during that time. But even those who were long for the entire ride still lost 98% of their buying power when the currency was revalued. At the peak of inflation, a cup of coffee cost $3,000,000.00 Someone in an earlier post mentioned "those who got rich" during the inflation. I can't even imagine who that might be or how they did it. (Actually, I doubt anyone did... just seems like "somebody" should have during all that turmoil.) Big inflation bankrupts nearly 100% of the citizenry...
http://nowandfutures.com/us_weimar.html German stock market at 21,400 in January and rose to 26,890,000 in November at the peak. according to these numbers it rose 1200X
I've read a story how one guy bought an entire 5 floor hotel for 1 golden ounce... Would that qualify as coming out as a winner in your book? But apart from that, obviously I agree.
having stable fiat currency is definitely possible and doable But in that case criminal banking cartels (private central bankers) can't use it to steal from people every day they can't support their GOD-LIKE lifestyles so we always end up with fiat currency with interest paid to Bankers. http://video.google.com/videoplay?docid=-515319560256183936#
The US may be intellectually past the 'tipping point', but as long as it can find buyers for Treasuries (mainly Asian central banks) then the game can continue. I'd be more concerned about the PIIGS being past the tipping point, and what happens if and when holders of PIIGS govt debt are forced to take haircuts on their bonds.
At the beginning of 1922, the German stock market was about 750 At it's peak in november of 1923, it was 26,890,000 Beginning of 1922 10 marks = 1 dollar Nov of 1923 4 trillion marks = 1 dollar :eek:
do you honestly believe Asians are stupid like they are shown in 1980s Hollywood movies. They won't be buying forever. There was a leak 9 months ago that FED is buying its own bonds incognito I'll see if I can dig it up from ET underbelly