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Thread: Why is inflation Not really A thing with all of the Money the FED has printed?

  1. #1

    Default Why is inflation Not really A thing with all of the Money the FED has printed?

    What am I missing? I have listened to Peter Schiff for years, but I have learned to take his analysis with a grain of salt, but shouldn't we be seeing a dollar crisis at some point? Does our debt really not matter? Gold and Silver are getting slaughtered at A time where they should be shining. I dont think anyone really knows anymore. I keep hearing about the "new normal" and it seems that everyone is bewildered and that old economic reasoning simply doesn't apply anymore. Strange times.

  2. #2

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    I heard an analogy once about a plastic grocery sack that I think applies here. It went something like this:

    Have you ever emptied your groceries from the sacks and had an empty bag sitting on the counter and perhaps the bag is "perched" on the edge of the counter. It's possible it may even just sit there for hours seemingly balanced upon nothing. . .Ultimately, there's a tipping point and it falls to the ground irrecoverably (of its own merits).

    This is how I feel about inflation. It's just perched in a position that is unsustainable logically speaking. Keep in mind, everything is a new normal depending on how narrowly focused your time horizon is.
    Is 2 days a "new normal"? Is 2 months a "new normal"?
    All of these things play out in the long run. The unfortunate part for you and me is that in the long run, you and I are dead (and it's not likely from corona virus).

    Take a step back and look at the underlying price of gold in the last hundred years. In 1920 the price of gold was 20.67 /Toz
    https://onlygold.com/gold-prices/his...l-gold-prices/
    So, if we measure the dollar against gold, the dollar has inflated 1600 / 20 = 80 times ... i.e. approximately a 4.5% compounded return for 100 years.

    If you narrow your focus too much, you're going to lose the forest for the trees. You're not missing anything. I strong believe that inflation is coming. Gold is my financial weapon of defense. Stocks and bonds have their place, but gold is a long term hedge - don't get lost in the fray in the near term.
    Aarcher - always hitting the mark. -XX----->

  3. #3

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    Quote Originally Posted by jjmcwill View Post
    What am I missing? I have listened to Peter Schiff for years, but I have learned to take his analysis with a grain of salt, but shouldn't we be seeing a dollar crisis at some point? Does our debt really not matter? Gold and Silver are getting slaughtered at A time where they should be shining. I dont think anyone really knows anymore. I keep hearing about the "new normal" and it seems that everyone is bewildered and that old economic reasoning simply doesn't apply anymore. Strange times.
    The US dollar will not lose value if all the other major currencies ape its behavior. If they all acted responsibly then it would definitely go down.
    Debt only matters when creditors loses confidence in the debtor to repay. In the case of sovereign debt this means the ability to roll over the debt+ interest, as they rarely repay.
    As for inflation, most of it is absorbed in real and financial assets, as the beneficiaries of the extra printed money, are primarily the ultra wealthy. Government inflation does not count these items.
    That is why these assets can be so volatile in pricing, as they are not true reflections of the economy.

  4. #4
    Join Date
    Jun 2014
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    3,458

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    In case the rest of the world says we do not want USD and move to some other form of money the stock markets will dump again and PPT steps in with $1.000.000.000.000 a week which will be used to short pm.... F'ed again

  5. #5
    Join Date
    Jan 2010
    Posts
    13,314

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    Quote Originally Posted by brutus2 View Post
    The US dollar will not lose value if all the other major currencies ape its behavior. If they all acted responsibly then it would definitely go down.
    Debt only matters when creditors loses confidence in the debtor to repay. In the case of sovereign debt this means the ability to roll over the debt+ interest, as they rarely repay.
    As for inflation, most of it is absorbed in real and financial assets, as the beneficiaries of the extra printed money, are primarily the ultra wealthy. Government inflation does not count these items.
    That is why these assets can be so volatile in pricing, as they are not true reflections of the economy.
    I'm no expert in anything and have no standing. But two things keep running through my mind. Backstory: For a long time, globalist and key finance institutions have crafted control of the globes money form and supply and seek global governance control - with America to be compliantly knitted into the globe's union. Controlled by - guess who.

    1. Post 1971/73, wild credit and leverage have led to massive technology investment via financial engineering. Those in charge have yielded massive wealth.
    2."Inflation", in the money supply (massive leverage/credit/debt has amalgamated the nations via "Shared Mutual Financial Destruction". Like our shared mutual destruction (nuclear weapons) with the Soviets, it mitigates and arbitrates conflict and resolution - until (it doesn't). This means "The Inflation", is in our life-styles - all massively a style of living (health/wealth/convenience) above what it would or could have been had we remained on a "Sound Money" standard.

    Are we better off. Yes! In a sense that we live longer and better. But NO! in the sense that many of our citizenry are suddenly (over the last 40 year, falling behind and off the "bus".

    I'd add....If the "meaning to life" is our self satisfaction with our value and achievements, wrapped around a close and dear family as the core (as, once, it was in history), and if the "Happiness" that brings cannot be "sensed" (much due to failed and needless expectation (for stuff and style), then the whole shebang is a fraud.

    I think the inflation is in our expectations, life-styles and wants. To live in frustration and anxiety for 10 years or so longer, it the consequence of all this.....................I'll take the old days -----and my family.
    Last edited by Markpti; 03-13-2020 at 08:09 PM.
    Who are the righteous? ....Markpti

    What value did Burisma think to gain by hiring Hunter Biden as a Board member vs ALL other choices?

    Those who cannot articulate the other argument do not fully understand their own argument.

    "Much can be done by wise legislation and by resolute enforcement of the law. But still much more must be done
    by steady training of the individual - in conscience and character...." .......T. Roosevelt

  6. #6

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    It is, probably why the media doesn't allow it on the mainstream news, people might push back more. The poorer among us feel the pain more. But, dollar hegemony tames it for us. As for silver, allot of commodities got dumped on at some point or another during this stock market rout, silver just took it's turn, and people apparently ran back to equities and left gold behind again, but gold is still 1500. Does debt really matter, maybe it depends on who's coming after you to pay it back I guess.
    They have more inflation in other countries, they take it very seriously.
    https://economictimes.indiatimes.com...2.cms?from=mdr

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