Yes there are many holes in the hyper inflation theory.
Personally I blame higher gas prices greed and product elasticity.
|
|
|
fuel to$1.30 a litre in GTA
- Thread starter sambuca
- Start date
Yes there are many holes in the hyper inflation theory.
Personally I blame higher gas prices greed and product elasticity.
Thank god. Someone has the correct answer. When will the sheeple wake up to the fact that money printing is the cause of this? You think people will wake up when gas goes to $3/litre, with high food prices and most of the population is out of work?
We are flying towards an inflationary depression.
Peter Schiff Predicts U.S. "Inflationary Nightmare": http://www.youtube.com/watch?v=HuXUIxrDZ8E
haisam10
Well-known member
People always down fiat money, but agree with it or not, it has led to unprecedented growth; the kind that would not be possible with gold backed money. I'm not advocating one or the other, but I think it's important thing to say.
Who are the sheeple? Those who ask question the ideas yopu present or you for believing them without enough knowledge to back it with actual evidence.
haisam10
Well-known member
Oh snap
I have a 750 rather than my proposed 1000
+3 brotha
U are my personal Jesus Christ and saviour
imkruzen
Well-known member
Investment banks buyfutures all the time to make money. GS JP HSBC Deutsche Bank are the biggest traders in commodities. Theycan do it well b/c they can see all the contracts. Like showing your cards in apoker game before you start. GS was predicting $200/bbl. oil while they wereshorting the market. They are also allowed naked short selling to keep a cap oncertain commodities which can negatively impact the confidence of the USD. Buyand sell USD and market index futures to drive the market in the desireddirection for the PPT.
The Gov. does not buy backdebt, they roll it over, and this is why the debt is continuously rising. Theyare printing money to monetizing fresh debt b/c there is a lack of buyers andselling is also putting pressure on the bond market, this is inflationarymonetary policy. Money is being pumped into the system to prevent a debt implosion.The derivative market and the mark to market are a fantasy pricing scheme. The derivativemarket is $1,200 trillion dollars. Many of these derivatives are worthless paper.In particular the MBS paper. The other is the interest rate swaps. All junkthat is being off loaded to the Gov. warehouse of worthless investments by thebanks to prop up their balance sheet, b/c they are insolvent. The derivative positionsof these banks are not on the books. To float the banks. Just look at the FEDbalance sheet.
The CB’s tool is interestrates to manipulate the exchange ratio relative to other currencies. What doesthe BOC do when they get to zero interest? They print CDN dollars to buy USDand prop up the zombie currency. Every CB followed interest rates to zero andwhen they can’t go lower they buy USD to levitate the value while debasingtheir local currency. When our exchange rate reaches a certain level plantswill begin shifting production to the US plants b/c lower cost and export toCanada. If the CDN continues rising, we will experience an economic slowdown.The first will be the industrial sector while the commodity sector booms as wasin 1974. Interest rate hike in Canada will have a negative impact on growth.The trade deficit rises in such cases. This is a form of sabotage to the valueof a currency, interest rates and printing.
imkruzen
Well-known member
Evidence is in prices of goods and was stated on these forums last year.
imkruzen
Well-known member
Along with unprecedented debt. It's a false economy and the time has come to pay.
If do some research on inflation when, the dollar was backed by PM you will find that for 200 yrs inflation didn't rise much above 4%, until 1913 when the Federal Reserve was formed. I believe that a gold certificate ratio will be formed to put a floor under the USD.
imkruzen
Well-known member
Not all currencies are pegged to the USD
actual evidence?????????? HAHAHAHHA...dude check what gold is going now. Don't take my word for it. High oil and gold are the canary in the coal mine. If you don't know why gold is going up so high. Then you better look into it before it's too late. Protect yourself before the inevitable happens.
The "sheeple" are the people who still believe in government, and our monetary system, etc.
haisam10
Well-known member
Lolz, I can picture u on a Mac with a tie dye shirt. Assuming u want anarchy?
imkruzen
Well-known member
I see Elmer Fudd the investor standing in the bread line feelin like a wiener b/c he didn't buy any PMs.
imkruzen
Well-known member
Quiet now, you're distubing the herd. I want to accumulate a little longer before they wake. So shhhh!
Rising commodity prices are not proof of hyper inflation. Hyper inflation is your explanation for rising commodity prices.
How can you say with certainty that the U.S will print its currency valueless when you have no clue how much its actually printing?
There are other explanations for rising prices, my must disprove these to make your point.
So explain to me how these currencies effect the price of gas in USD when its the value of the dollar dropping not the value of oil rising.
imkruzen
Well-known member
The public, investors, hedge funds, pension funds etc. areslowly becoming aware of the implications of the FED’s gushing fountain ofmoney is causing to the USD. The migrationinto hard assets is causing physical goods & tangible assets to rise inprice. The demand for US gold and silver minted coins has been so robust thatthe mint had to suspend sales due to shortages and shutdown production. Amplifyingthe flow of capital into hard assets such as oil, is the result of conflict inEgypt and Libya, with interruptions to output providing the extra leverage toprice escalation. Global capital has thumbed its nose at US debt instruments.When long bonds pay 4% interest and inflation is over 9%, money will flow wherewealth is preserved or gains can be made. Global capital flow is now focused oncrude oil, industrial metals, grains, farmlands, cotton, coffee, sugar, gold& silver, which are all tangible assets, not worthless paper. The CBs haveonly the ability to print money but not direct it where it would be mostbeneficial to the economy.
History is littered with failed paper currencies. You can read about the cause of the failures and you will recognize that there is a common road to collapse. The debt of the US empire is not repayable. With unfunded liabilities, medicare, medicade and pension they are over 100 trilion in debt. At the current rate of debt growth tax receipts will not even cover the interest on the fiscal debt. The US is approaching a debt ratio of 100% GDP and you know what happens then. If you don't you should read more to understand the implications and historic precedence of that.
imkruzen
Well-known member
The current situation we have in price increases is modest. With the FED policy of QE there is a definite possibility of currency collapse. They US is caught in the debit spiral.
The Formula
1. First interest rates rise affecting the drivers of the US economy, housing, but before that auto production goes from bull to a bear markets.
2. This impacts many other industries and the jobs report. An economy is either rising at a rising rate or business activity is falling at an increasing rate. That is economic law 101. There is no such thing in any market as a Plateau of Prosperity or Cinderella – Goldilocks situations.
3. We have witnessed the Dow rise on economic news indicating deceleration of activity. This continues until major corporations announced poor earnings, making the Dow fall faster than it rose, moving it deeply into the red.
4. The formula economically is inherent in #2 which is lower economic activity equals lower profits.
5. Lower profits leads to lower Federal Tax revenues.
6. Lower Federal tax revenues in the face of increased Federal spending causes geometric, not arithmetic, rises in the US Federal Budget deficit. This is also true for cities & States as it is for the Federal government.
7. The increased US Federal Budget deficit in the face of a US Trade Deficit increases the US Current Account Deficit.
8. The US Current Account Balance is the speedometer of the money exiting the US into world markets (deficit).
9. It is this deficit that must be met by incoming investment in the US in any form. It could be anything from businesses, equities to Treasury instruments. We are already seeing a fall off in the situation of developing nations carrying the spending habits of industrial nations; a contradiction in terms.
10. If the investment by non US entities fails to meet the exiting dollars by all means, then the US must turn within to finance the shortfall.
11. Assuming the US turns inside to finance all maturities, interest rates will rise with the long term rates moving fastest regardless of prevailing business conditions.
12. This will further contract business activity and start a downward spiral of unparalleled dimension because the size of US debt already issued is of unparalleled dimension.
Therefore as you get to #12 you are automatically right back at #1. This is an economic downward spiral.
|
|
|
|
|