defprun

I lol'd for real!

phinsup

No Mcdonalds, I will provide cultivation and agriculture training, you need to grow your own food.

defprun

I already make my own secret sauce!

j9fd3s

i heard this on the radio, but is it correct that the fed is just going to print $700 billion? if thats what they are going to do, i need to find a wheelbarrow....

phinsup

They aren't going to have much choice, we've been printing money against debt, debt that foreign creditors buy (in the form of tbills), China has been a large buyer of the bills allowing us to print money. As it sits now they don't want anything to do with our tbills, they are trying to unload some of what they have already. This leads to blind printing of the money, no debt added = dilution of the outstanding dollar count. This is already being done, I posted an image around here somewhere, in my blog as well. Anyhow, this bill didn't pass but it would seem the Fed went ahead and "lent" 1.25 TRILLION to financially insolvent banks. Enter the inflation I have been warning about for MONTHS AND MONTHS. Dilution of the dollar means a less valuable dollar, which means inflation. The other dollars are collapsing right along side ours and that will keep us even for a little while in some respects, but in other respects like commodities it will not.

1988RedT2

But if everybody's dollar is in the *******, won't that mean that the producers of goods will simply have to accept less for their products? If the economic collapse is worldwide, then we are not at a competitive disadvantage when it comes to buying goods, and we can bask in the sunshine of a worldwide depression.

phinsup

That is correct, but the more important countries we buy from arent in the *******. the euro is in the *******, we buy very little from them. OPEC nations, most of them decoupled with a commodity backed dollar (considered to be due to export oil) these dollars are not collapsing, we buy a lot of oil. As I stated earlier, a period of deflation, then hyper-inflation. This will be when everything collapses, then countries start to fend for themselves, they start to look at fiat currencies as "risky", they will rebound much faster then us, they aren't even half as dependant on other nations goods as we are.... then the inflation starts.



The difference between this depression and the last will BE IMHO the last depression was a deflationary depression, this one will be an INflationary depression. We'll see who's right The difference is we don't make anything to deflate, we buy our goods on the open market, once we dillute our dollar to collapse you won't see our dollar holding up against the foreign currencies. The EU will collapse but recover much quicker because they produce in the Union, they could even nationalize their dollar if necessary, we cannot. We could, but there would be nothing to buy with it,.

phinsup

When the other nations reject our dollar, that's when we'll see the inflation, when they demand a commodity because the USD is no longer a safe haven dollar, no longer the go to dollar. Fiat currency's never last and the USD's days are numbered.

defprun

It gets really bad when you start printing out your own Million dollar bill like hotcakes a-la Zimbabwe!

phinsup

They just printed a TRILLION dollar bill.