So, care to take a guess at the hyper inflation level? 1000% 10,000? What do you reckon?

I've never said hyperinflation. Even the spike in the graph isn't enough to cause that. It would need to be 10X as high. I've said we are going to have "uber-inflation" though. My guess is around 10-15% annual inflation for a decade or so..unless we get another Paul Volcker in office who is determined to choke it off to protect the dollar, which I seriously doubt. There is simply no way to fund our current welfare/warfare state with a strong dollar, so the gubmint is going to take the easy way out and use the indirect tax of inflation.

oh, ok. so when you said this

quote:

Originally posted by Capitalizt The comparisons are not entirely invalid.

you didnt really mean it?

"entirely" was a qualifier buddy.. Clearly there are similarities between the vast increase in the supply of money in Zimbabwe and the huge spike we've seen here. Both countries are engaged in the same practice. It's just a matter of degree.

Of course it’s a matter of degree, that’s the whole point. EVERY country is doing what Zimbabwe was doing (printing money). Let’s all make ludicrous comparisons the world over, yeehar!

Few countries have a fed quite as insane as the US fed. I don't think Austrailia/Britain/Germany, etc have printed nearly as much. We can get away with it though cuz a bunch of dumbass countries around the world (like China) have their currency tied to the dollar..which means their value will drop in tandem. Because of the currency pegs, we are basically exporting our inflation to these other countries and won't be paying more for their imports as a result. As long as people see the US Dollar as the "world reserve" currency, the game can continue indefinitely.

Last edited by Capitalizt on Mar-02-2010 at 02:40

That “insane” fed just stopped your country from imploding.

Not rly. They (along with the federal gubmint) slapped some bandaids on a crumbling foundation. All they've really done is pass the buck to future generations and guarantee we will need to deal with a much bigger debt/currency crisis in the coming years.

quote:

Originally posted by Capitalizt Not rly. They (along with the federal gubmint) slapped some bandaids on a crumbling foundation. All they've really done is pass the buck to future generations and guarantee we will need to deal with a much bigger debt/currency crisis in the coming years.

Capitalizt, you do realize the Federal Reserve is going to raise interest rates, reduce their balance sheet, etc., right? The real problem is the government's deficit spending and the lack of regulation in the financial markets, specifically derivatives. This crisis should make clear to you cap what a completely unregulated market is capable of. The derivatives market quite clearly almost brought us all down.

Derivatives have only become the disaster they are because these major institutions have an implicit guarantee from the government that they will never be allowed to go under. I think a few catastrophes with no corresponding bailout will do a world of good for the markets in the long run. This attitude that things must be kept on an upward trajectory at any cost is where the real damage is done krypt. All of these stimulus plans, home buyer tax credits, cash for clunkers, etc are distorting the market prolonging the current malaise. This belief that the state must fight market corrections and keep this bubble economy inflated at all costs is the SOURCE of the debt you are so worried about.

quote:

Originally posted by Capitalizt Derivatives have only become the disaster they are because these major institutions have an implicit guarantee from the government that they will never be allowed to go under.

oh, so you're saying the bailouts came before the collapses? interesting.

quote:

Originally posted by pkcRAISTLIN oh, so you're saying the bailouts came before the collapses? interesting.

Well pk the first bailouts of financial institutions didn't happen in 2008. We had precedent for that back in the 80's.. Secondly, the biggest derivative players like JPMorgan & others have a virtually unlimited line of credit from the fed (since they are part of the fed). They can safely assume they will be bailed out if they f*ck up sufficiently badly..unlike the man on the street who would lose his house if he made irresponsible bets. Of course nobody sets out to lose money with these derivative games..but when you are politically connected the incentive to be cautious is greatly reduced.