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Thread: Deflation Precedes Hyperinflation-Long Answer

  1. #11

    Default

    First of All, I just want to say thank you for this excellent post, it is the best post i saw in a long time, makes me understand more.

    One thing I just could not try to get better time line on when you think the collapse will happen, NOT date i mean what do you expect the period on this current stage?

  2. #12

    Default heavy read

    i kinda had most of that swirling around in my head but when it's all laid out like that it makes me sure I'm on the right path. still it's kinda scary to think it all the way thru. time to start stocking more of some other goods. and not just food & water & ammo.

  3. #13

    Default

    great reading.

  4. #14

    Default okay

    You shared what I was thinking but in my current state of cynicism I wonder why gold? What if TPTB want platinum or some other "rare" commodity? I really think some of these folks are willing to do whatever to keep their hands in control of power and money. Gold makes sense to me but...

  5. #15

    Thumbs up

    Quote Originally Posted by lubbad View Post
    There have been more than three thousand examples of fiat currency in the world, and every single one has ended in failure. No exceptions.

    I hope I answered your question.
    This is a very important point to take note of. It is true, currencies have come and gone all throughout history, why should the current ones be any different??

    The mechanism is one that is designed to implode eventually and 40 years is, in comparison, a long time for a currency to survive for.

    Great post, great read, I wish more people would read posts like these. Thank you.

  6. #16

    Default

    Quote Originally Posted by kkamro View Post
    First of All, I just want to say thank you for this excellent post, it is the best post i saw in a long time, makes me understand more.

    One thing I just could not try to get better time line on when you think the collapse will happen, NOT date i mean what do you expect the period on this current stage?
    I would need to be able to see into the future for that. Myself I am preparing for a 2014 meltdown. People think I wear a tin foil hat here in my house calling for complete meltdown. But I am no different than other economists. Its just that I am not a cheerleader for the U.S. It has been a long time since the U.S. gave the world anything of value.

    The U.S. will go above 100% in the debt to GDP this calendar year-and perhaps to 105% of GDP by 2012. Also the unfunded liabilities of the U.S. are not figured into the debt but they are economically crippling-at an estimated 70 trillion. It is incredibly misleading not to include these unfunded liabilities in the U.S. debt. If the unfunded liabilities were figured into the U.S. National debt: the debt to GDP is a staggering 590% of GDP.

    So the cost of staying in operation has exceeded revenue. When this happens to a company it simply shuts down. Obviously a country cannot just shut down.

    Petrodollars.
    Keep in mind that nobody can get Saudi oil without purchsing it in U.S. dollars. Politics aside-Iraq decided to sell oil in Euros-and we saw what happened to Iraq. They are the lap dog of the U.S. now. It was rumored that Libya was organizing Africa to trade oil in another currency-and we saw what happened to Libya. the CIA has Iraq the #12 oil producer and Libya the #18.

    Once the use of U.S. dollars in oil is eliminated-we are finished.

  7. #17

    Default

    Quote Originally Posted by lubbad View Post
    The U.S. will go above 100% in the debt to GDP this calendar year-and perhaps to 105% of GDP by 2012.=
    For fun I went to check out the US debt clock website, usdebtclock.org, and see the current gross debt to GDP percentage. Its currently at roughly 98.85%. Now this a totally rough estimate so bear with me. It went up by 0.0000001 every second or less, it was actually obviously less than a second but let's say 1 second for simplicity.. If you were to multiply 0.0000001 by 11 500 000 you would get the additional 1.15% to make the 1 to 1 ratio between gross debt and GDP. 11 500 000 seconds divides itself out to be 133.1 days, which would roughly be in 19 weeks (133 days) which would be Jan 8th, 2012.
    Last edited by Holy_Peanuts; 09-28-2011 at 06:22 PM.

  8. #18

    Default

    best thread Ive read in my time on kitco.

  9. #19

    Default Shelves

    Quote Originally Posted by coindog View Post
    i kinda had most of that swirling around in my head but when it's all laid out like that it makes me sure I'm on the right path. still it's kinda scary to think it all the way thru. time to start stocking more of some other goods. and not just food & water & ammo.


    This is what a grocery store shelf looks like when there is a hurricane coming; or a snowstorm. Imagine a currency failure?

    Get ready for what comes next. You will need to prepare for more than a hurricane or a snowstorm.

  10. #20
    Join Date
    Dec 2007
    Posts
    4,924

    Default

    Thank-you for that.

    However... How come there is always a... 'However?'

    I don't think your truly getting the GLOBAL picture.
    Yes the USD is the world's reserve currency. So far this has worked out pretty well for them.
    They have offloaded the downsides to the other countries and kept a lot of the upsides.
    However (see what I mean)
    The very things they offloaded are quickly becoming critical elements of survival and the upsides can turn to downsides on a dime.

    It's like an old steam train....Chugging along... lots of water, just the right amount of fuel. Clear track ahead.
    As each Eurozone country steps away from reliance on their own currency and systems they add their fuel (USD) to the firebox.
    Benny and the Fed is saying... "Sure... hook your car onto our train. No problem...."
    Every country that has counterparty risk to those countries.... adds more fuel... the train is going faster.
    The offloaded currency depreciation from other countries comes back as product price inflation. More fuel.
    The GLOBAL Banks Counterparty Currency Default Swaps, CDO's, their Insurance derivatives,
    Interest Rate derivatives, Forex Derivatives, Turquoise Pools of Bonds and Black Box trading.... Faster... faster.
    They are all piling in and there is no more water, the firebox is red hot...the boiler rivets are starting to pop.
    Oh look!...the Fed has found some Currency water to put on it but past a certain stage water makes the whole thing blow apart even faster.
    I read a study back in about 1982 that pointed out that at about 12-14%, price inflation feeds on itself and becomes self actuating in a standard exponential way.
    So they reset it to 2-4% a year... that is now coming due. Slamming interest rates to nothing isn't going to stop it.
    For anyone not understanding that last point... watch this 8 part series to understand hockeystick exponential dymamic:
    http://www.youtube.com/watch?v=F-QA2rkpBSY

    Now do the math from the Mid 70's... it really is that simple.
    When I read about Zim$ converting to the USD, I knew that was the no hope moment.
    When the USD is referred to as a Train Wreck... that's exactly what they mean.
    Every Global event is adding more fuel and every country hitching onto the last car will just make it worse.
    There are no brakes, we are out of sand and the grade is getting steeper.
    So you have to decide it you're gonna jump now or ride it on down.
    http://www.youtube.com/watch?v=FHKxk...eature=related

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