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Inflation will cause the government debt bubble to bust in the west
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2021-05-01 at 10:37 AM UTCAt the minute government debt pays less than or close to the inflation rate - 2% or so.
As inflationary pressure grows as a result of commodity shortages and increased wage demands of labor, inflation will increase - 10-20% is normal in such times.
As a result government will have to pay much more to roll over debt, which will have to be financed by money issuance, which will cause people to try to buy things - it won't even matter what - as a hedge to inflation.
I don't think the central banks will allow anything to collapse, but the money printing will cause big devaluations in currency value.
Hard to time, but already inflation seems to be taking off as the west returns after the big scare over the wu-flu virus.
Thoughts? -
2021-05-01 at 10:42 AM UTC
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2021-05-01 at 10:48 AM UTC
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2021-05-01 at 11:07 AM UTCPretty sure the Canadian dollar is gonna be valued on par with the Yen soon.
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2021-05-01 at 11:19 AM UTCThe following users say it would be alright if the author of this post didn't die in a fire!
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2021-05-01 at 11:29 AM UTC
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2021-05-01 at 11:41 AM UTChe actually reminds me of a grown up Jimmy CarrThe following users say it would be alright if the author of this post didn't die in a fire!
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2021-05-01 at 11:44 AM UTCbut he sounds like bill maher
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2021-05-01 at 2:47 PM UTC
Originally posted by Donald Trump At the minute government debt pays less than or close to the inflation rate - 2% or so.
As inflationary pressure grows as a result of commodity shortages and increased wage demands of labor, inflation will increase - 10-20% is normal in such times.
As a result government will have to pay much more to roll over debt, which will have to be financed by money issuance, which will cause people to try to buy things - it won't even matter what - as a hedge to inflation.
I don't think the central banks will allow anything to collapse, but the money printing will cause big devaluations in currency value.
Hard to time, but already inflation seems to be taking off as the west returns after the big scare over the wu-flu virus.
Thoughts?
wrong.
which country are you talking about.
right now theres only one country thats running on government sanctioned MMT (Maddox Monetary Theory). the US.
inflation of the whole economy is not, will not be possible since there are lots inflationary blackholes such as cryptos, stonks, amd now NFTs.
as can be seen from the market cap of cryptos these days and gamestop squeezes and stupid "artworks", trillions of newly created dollar did not result with inflation because not a single cent / dime went in into the economy. also, in the US, saving rates are up.
so in the end only some staple food item and speculative assets will see some inflation. the rest will remain more of the same/ -
2021-05-01 at 2:51 PM UTC
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2021-05-01 at 3:07 PM UTC
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2021-05-01 at 3:18 PM UTC
Originally posted by vindicktive vinny wrong.
which country are you talking about.
right now theres only one country thats running on government sanctioned MMT (Maddox Monetary Theory). the US.
inflation of the whole economy is not, will not be possible since there are lots inflationary blackholes such as cryptos, stonks, amd now NFTs.
as can be seen from the market cap of cryptos these days and gamestop squeezes and stupid "artworks", trillions of newly created dollar did not result with inflation because not a single cent / dime went in into the economy. also, in the US, saving rates are up.
so in the end only some staple food item and speculative assets will see some inflation. the rest will remain more of the same/
How isn't the EU in the same position as Britain and the US?
Originally posted by vindicktive vinny no thing will collapse because the people wont allow it.
because when it does collapse the people will still pretemd everything is fine and put on a brave face.
Yes, they'll just redefine the rules and loot others, like for instance with the Maltese Bailout. -
2021-05-02 at 12:04 AM UTC
Originally posted by Donald Trump How isn't the EU in the same position as Britain and the US?
they cant print unlimited amount of euro or pound because they're not the worlds reserve currency.
you dont need euro or pound if you aremt european or british, which 80% of the world is.Yes, they'll just redefine the rules and loot others, like for instance with the Maltese Bailout.
no, i mean like people in the matrix will still keep the system running despite knowing that they are in it.
everybody knows that the their banks dont have their money if they decided to withdraw all their money all together, so they wont in order to keep their banks running for their conveniences.
the same with gold or silver market. none of those paper silver and gold certificates could be redeemed into real, actual physical metals because there arent that many gold and silver bars available. it would collapse as soon as people start redeeming them.
and people know this, but choosed to keep the system running. -
2021-05-02 at 12:08 AM UTC
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2021-05-02 at 4:50 AM UTC
Originally posted by vindicktive vinny the same with gold or silver market. none of those paper silver and gold certificates could be redeemed into real, actual physical metals because there arent that many gold and silver bars available. it would collapse as soon as people start redeeming them.
and people know this, but choosed to keep the system running.
This is why you should own physical silver and gold. At least as a store of value. -
2021-05-02 at 3:53 PM UTC
Originally posted by Sophie This is why you should own physical silver and gold. At least as a store of value.
yes and no.
the jéws kept lots of physical gold and silver too during the onset of both world wars. worked the first time and not the second.
all storage of value must be utilized in order for them to have values. if you keep gold and silver bars you must have a plan when, where and how to use them. storing them for value storages sake will only make them more useless than paper weight. -
2021-05-02 at 4:12 PM UTC
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2021-05-02 at 4:21 PM UTC
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2021-05-02 at 4:26 PM UTC
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2021-05-02 at 5:20 PM UTC
