Thoughts on Hyperinflation

[doom&gloom]

Re: Thoughts on Hyperinflation

Is there REALLY plenty of gold? Let's see how Ron Pauls efforts to audit all that supposed gold go, shall we?

[Jay]

Re: Thoughts on Hyperinflation

What if there was debt jubilee, would the demand for dollars dive?

I would imagine it would mean a new global currency controlled by those who made the decision to have a jubilee. And/or war first.

[dummass]

Re: Thoughts on Hyperinflation

I would imagine it would mean a new global currency controlled by those who made the decision to have a jubilee. And/or war first.

The new global currency will backed by tungsten, not gold; the central banks have been quietly accumulating tungsten, while disguising it as gold. Once TPTB control the world's supply of tungsten, it will be revalued and coined. The gold bugs will be left holding a worthless metal with no industrial uses. World domination has never been so easy. Suckers!

[Fiat Currency]

Re: Thoughts on Hyperinflation

Not sure why I almost never see FOFOA here on a site that recommends a 30% allocation in gold. If you really want to investigate hyperinflation - start with these 2 articles ...

Just Another Hyperinflation Post - Part 1

Just Another Hyperinflation Post - Part 2

[sishya]

Re: Thoughts on Hyperinflation

But at some point, bond prices will collapse. Interest rates will soar. Some event, some black swan, will cause it. And then there will be a rapid flight from the US dollar and all currencies, and a rapid flight into tangibles.


That's what we can expect, hyperinflation. It may be this year, next year or in five years, but it will happen.

why would interest rates soar in hyperinflation? I am thinking on these lines "IF" it happens - no one will exchange real commodities for currency, no demand for currency/loans, interbank lending drops to zero, bonds fall(yields rise does not matter), severe Govt funding issues for liabilities, Govt directly prints money(FED buys Treasuries) and funds liabilities, bank run(people running to exchange cash for commodities), No Loans and so No Fractional reserve and Money is directly funneled to Masses, Money loses value fast and Govt starts printing bigger notes. Then price controls/new currency can come.. It all starts from confidence in currency, but as iTulip is saying, I find it hard to believe, though I am preparing.

Off course Govt can stem some of those foreign dollars returning to USA by instituting a tax on that.

[sishya]

Re: Thoughts on Hyperinflation

Noticing that many iTulipers have been slowly drifting towards conspiracy theories, including myself lately. Not healthy, but knowledge can be harmful also.

[ThePythonicCow]

Re: Thoughts on Hyperinflation

Noticing that many iTulipers have been slowly drifting towards conspiracy theories, including myself lately. Not healthy, but knowledge can be harmful also.

Imagine we had had broad spread usage of the Internet back in the 1930's, as World War II was brewing.

I suspect back then that some of the most powerful men on Earth, some who were perhaps healthier of mind and spirit, did not like where things were headed. These might be powerful men who had not reached the absolute pinnacles of power and who were also not as dastardly evil as someone such as Hitler or Stalin are currently portrayed in our history books.

These men might have been able to change history, had they had access to a tool to reach the minds of hundreds of millions of people. Perhaps they could have undermined Hitler's power by exposing the Burning of the Reichstag "conspiracy." No doubt there were other propaganda waves, such as portraying other nationalities as subhuman, that could also have been undermined via such an Internet back then.

Official media and many of those aspiring to more conventional success would have poopooed all the conspiracy nonsense. But many ordinary people would have given it some credence, and given their official leaders less credence. The adulation of Hitler apparently remained strong for over a decade. The adulation of leaders today is more fragile.

There is a major difference between a media with "one channel" controlled by the most dominant power, and a media with a million channels, controlled by many.

We are seeing that difference now. It may be our best hope for avoiding World War III or world tyranny.

Knowledge of illness is not necessarily unhealthy, if accompanied by an informed search for better health.

[Jay]

Re: Thoughts on Hyperinflation

The new global currency will backed by tungsten, not gold; the central banks have been quietly accumulating tungsten, while disguising it as gold. Once TPTB control the world's supply of tungsten, it will be revalued and coined. The gold bugs will be left holding a worthless metal with no industrial uses. World domination has never been so easy. Suckers!

Twice now you have made me laugh out loud.

[Jay]

Re: Thoughts on Hyperinflation

Knowledge is power. Ignorance is bliss.

[BadJuju]

Re: Thoughts on Hyperinflation

I really need to get back into holding precious metals. I think I'll pick up some silver at the next dip.

[bpr]

Re: Thoughts on Hyperinflation

The new global currency will backed by tungsten, not gold; the central banks have been quietly accumulating tungsten, while disguising it as gold. Once TPTB control the world's supply of tungsten, it will be revalued and coined. The gold bugs will be left holding a worthless metal with no industrial uses. World domination has never been so easy. Suckers!

Not just tungsten. 60% Tungsten 40% Pogs.

[sunskyfan]

Re: Thoughts on Hyperinflation

This just in ... Dick Cheney informs the world that currency does not matter.

[Fiat Currency]

Re: Thoughts on Hyperinflation

And a third and final missile ...

http://fofoa.blogspot.com/2010/09/ju...st-part-3.html

[ThePythonicCow]

Re: Thoughts on Hyperinflation

And a third and final missile ...

http://fofoa.blogspot.com/2010/09/ju...st-part-3.html

Awesome - thanks.

There are some who say that hyperinflation will not happen in the U.S., because there is no stronger currency against which to hyperinflate.

To some extent, this is true. The other examples we have from recent history of hyperinflation involved the collapse of one fiat currency to much stronger fiat currencies. There is no stronger fiat currency available to displace the Dollar.

However I would draw a different conclusion.

The ultimate outcome of a poker game is not so much which sucker will lose all his money next. The ultimate outcome depends on who has the strongest hands and the best skills and perhaps the largest handgun under his vest.

The ultimate outcome of some bears rampaging through a camp ground depends not on who is the slowest one who will be caught next, but who is the fastest one or the one with the biggest gun, who will be standing in the end.

More generally, in any contested situation, determine who is strongest in order to predict who will most likely win out. The order in which the weaker hands fall first is less interesting, even to those weaker hands. I doubt that very many Greeks care deeply whether the Latvia economy goes belly up before or after the Greek economy, and vice versa for the Latvians.

So -- who has the strong hand? Who's the Big Dog. Our instincts look at nations, and clearly the Big Dog nation is the United States. But who controls the U.S.? As one of the Rothschilds noted, it matters little who controls a nation politically, if someone else controls that nations money supply.

Note this quote, from the above FOFOA piece, quoting in turn Wikipedia:

During the first half of 1922 the Mark stabilized at about 320 Marks per Dollar accompanied by international reparations conferences including one in June 1922 organized by U.S. investment banker J. P. Morgan, Jr.[4] When these meetings produced no workable solution, the inflation changed to hyperinflation and the Mark fell to 8000 Marks per Dollar by December 1922.

Note the presence of Mr. Morgan, the lead American for the Rothschild and related interests.

Here is where the much derided, controversial and speculative, study of "conspiracy theories" comes to play.

I will not attempt to explain or elaborate here, but my guess is that the House of the Red Shield (the Rothschilds) and related interests remain the dominant force in the world.

Sometime in the not too distant future "they" will crash U.S. Treasuries, then the U.S. Dollar. The Dollar will fall, not to a more powerful fiat currency, but to more powerful interests. It does not matter a tinkers damn what your poker chips are worth, when Al Capone pulls out his Tommy gun.

There will be a risk of major war during this time, to further endebt the U.S. and to bring any recalcitrant nations around (Iran, North Korea, Syria, ...) The likely provocation for such a major war would be a nuclear false flag event. Life in the United States will get pretty rough for a year or three. The American spirit will need to be broken as a wild horse is broken, so that it will take the saddle of international banking control. The B.I.S. will play the role that J.P.Morgan and son played a century ago.

The much maligned and much confused conspiracy theories provide a window into these powerful interests. But they are not easy to understand correctly. It's rather like putting together a large jig saw puzzle, while wearing kaleidoscopes for glasses and tripping on acid, and while someone else keeps removing necessary pieces from the table and adding bogus pieces. It takes a while to get the "big picture", and one risks going insane in the process.

[shiny!]

Re: Thoughts on Hyperinflation

The American spirit will need to be broken as a wild horse is broken, so that it will take the saddle of international banking control.

If this came from just about anyone else, the part of me that wishes I had swallowed the Blue Pill would dismiss it. But you're one of the smartest people I know, so this is probably true and depressing as hell...