Hyper-Inflation

[Karen Kraft]

Hardly. When debt service exceeds income, you've got a big, big problem.

Forget about it. You are trying to argue with an idiot.

To wit: Debt is neither good nor bad, but it is common. Thus, small debt and jaw-dropping over-the-top catastrophic debt are the same.

That guy is a waste of time.

 

[Karen Kraft]

The dollar, on the other hand, fell to a roughly seven-week low versus the yen, weighed down by weaker-than-expected U.S. jobless clams data.

Jobless rate in the U.S. is close to 25% once you cut away the smoke and mirrors and include people who used to be employed full time but have given up even looking or are now "self-employed" rummaging through the trash to find bottles and cans to cart over to the recycle center. Check out the lines at those places. Used to be kids and Mexicans. Now it looks like Career Day.

 

[Karen Kraft]

Soon, Bam-Bam, the "fuck you" man, will bring us yet another hystorical moment:

The hyperinflation of 1914-1923 will be repeated 100 years later (that's 2014-2023 for those of you who majored in non-scientific studies).

"Uh, we inherited deficit spending when we came into office. Bush did it; wasn't me."

http://www.history.ucsb.edu/faculty/marcuse/classes/33d/projects/1920s/1923StacksOfMarks.jpg

Oh look, Contweaka, we almost have enough
for Pop's doctor visit co-pay today!​

Is it 2014 yet?

My how time flies!

 

[Karen Kraft]

I understand where you're coming from, and I certainly wouldn't mind revisiting this thread in, say, 2014, assuming we both haven't been banned!

My point in bumping this thread was to point out how continually wrong the more bellicose members of the Reichwing here are...they make wide-eyed predictions promising all sorts of inane conjecture, and are never held accountable for their stupidity.

My all-time favorites:

• Karen Kraft: "Hyper-inflation will be here by January 2010" and of course "Dow 6000"
  ****

• 
  
  http://forum.literotica.com/showpost.php?p=33242546&postcount=103

 

[Frisco_Slug_Esq]

Great news for Obama today, tomorrow, the day after tomorrow...



How long before he deflates?

 

[RobDownSouth]

http://forum.literotica.com/showpost.php?p=33242546&postcount=103

Better go back and modify this post Karen

 

[Karen Kraft]

Better go back and modify this post Karen

Re-read the initial post.

Again and again and again.

http://forum.literotica.com/showpost.php?p=30818625&postcount=1

 

[Karen Kraft]

http://forum.literotica.com/showpost.php?p=33242546&postcount=103

Meanwhile, like I said, you can rejoice in the fact that it took your hero a few extra months to take us down the road to hyper-inflation? Or are you claiming that the delay in his misdeeds means that hyper-inflation is just bogyman paranoia? When hyper-inflation finally presents itself will you then claim that it's Bush's fault. Rhetorical question; don't bother trying to answer. We all know that's exactly what you will do.

 

[Frisco_Slug_Esq]

Lather, rinse, repeat...

 

[RobDownSouth]

Re-read the initial post.

Again and again and again.

http://forum.literotica.com/showpost.php?p=30818625&postcount=1

Karen, I read the initial post again.

Had you attended an accredited college, you might have learned the definition of "hyperinflation" in Economics: a ruinously high rate of interest (the generally accepted rule of thumb is 50% or more) that results in physical goods replacing currency as a medium of exchange.

Your revisionism notwithstanding, at no time in the history of the United States has hyperinflation EVER occurred.

To claim otherwise is a falsehood, plain and simple.

Inflation in the United States during the period you specified (1914-1923) was high (15% or so) but that was largely due to the scarcity of goods imported from Europe, our major trading partner at the time, and our late entry into WWI.

There WAS hyperinflation in Europe at that time, however, you might recall that there was a World War going on and both sides had their infrastructure and manufacturing base crippled due to the war, not to mention farmlands turned into battlefields.

Your attempt to conflate European hyperinflation of 1914 with present-day America doesn't stand up to serious scrutiny. Your sophomoric "analysis" fails the "laugh test".

Now go ahead and play the misogyny card....

 

[trysail]

Thanks to irresponsible monetary policy and the consequent relentless inflation, a dollar from 1926 would now be worth all of 8½¢. Put another way, a dollar from 1926 would be worth $12.50 today.

1971 value of a Swiss franc: $0.23
2010 value of a Swiss franc: $1.05

1999 value of €1.00 = $1.00
2010 value of €1.00 = $1.60

1971 value of ¥1.00 = $0.0028
2010 value of ¥1.00 = $0.01

1985 value of £1.00 = $1.00
2010 value of £1.00 = $1.60

http://research.stlouisfed.org/fred2/graph/fredgraph.png?&chart_type=line&graph_id=0&category_id=&recession_bars=On&width=630&height=378&bgcolor=%23B3CDE7&graph_bgcolor=%23FFFFFF&txtcolor=%23000000&ts=8&preserve_ratio=true&id=CPIAUCNS&transformation=lin&scale=Left&range=Max&cosd=1913-01-01&coed=2009-12-01&line_color=%230000FF&link_values=&mark_type=NONE&mw=4&line_style=Solid&lw=1&vintage_date=2010-02-04&revision_date=2010-02-04&mma=0&nd=&ost=&oet=&fml=a

 

[hogjack]

Hyper-inflation is likely to start in early January 2010.

Buddy, your prognostications are dreadful.

Reformat them in quatrains and then, perhaps, some geeky goofs will marvel at your abilities.

 

[Le Jacquelope]

Jobless rate in the U.S. is close to 25% once you cut away the smoke and mirrors and include people who used to be employed full time but have given up even looking or are now "self-employed" rummaging through the trash to find bottles and cans to cart over to the recycle center. Check out the lines at those places. Used to be kids and Mexicans. Now it looks like Career Day.

Wow. You're using the European standard of unemployment. The same one I kept drilling into you people's heads during the Bush years. Why did you refuse to use that standard then but suddenly you're using it now? Hmmm.

Also note that European unemployment at the time, by those standards, was not much higher than ours. After 2008, though, their unemployment rate sank lower than ours. And they're social democracies - er, ahem, socialists. Funny, how everyone is fucking scared shitless to explain to me how a "socialist" group of nations got a lower unemployment rate than the US.

Is it 2014 yet?

My how time flies!

Like I said, I'll take you up on 2014. Bring it on. I say hyperinflation is impossible even then. We'd need supply shortages and America doesn't have that problem.

Karen, I read the initial post again.

Had you attended an accredited college, you might have learned the definition of "hyperinflation" in Economics: a ruinously high rate of interest (the generally accepted rule of thumb is 50% or more) that results in physical goods replacing currency as a medium of exchange.

Your revisionism notwithstanding, at no time in the history of the United States has hyperinflation EVER occurred.

To claim otherwise is a falsehood, plain and simple.

Inflation in the United States during the period you specified (1914-1923) was high (15% or so) but that was largely due to the scarcity of goods imported from Europe, our major trading partner at the time, and our late entry into WWI.

Hell, inflation was almost 15% in 1980-1981. And that was because of the previous oil crisis.
http://inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx?dsInflation_currentPage=2

Basically that means that inflation during 1914-1923 wasn't all that bad compared to a real scenario of hyperinflation, of which Karen Kraft has absolutely no clue.

There WAS hyperinflation in Europe at that time, however, you might recall that there was a World War going on and both sides had their infrastructure and manufacturing base crippled due to the war, not to mention farmlands turned into battlefields.

Further notes to Karen Kraft: that happened in Europe, not the U.S.

Your attempt to conflate European hyperinflation of 1914 with present-day America doesn't stand up to serious scrutiny. Your sophomoric "analysis" fails the "laugh test".

Now go ahead and play the misogyny card....

Misandrist!

Forget about it. You are trying to argue with an idiot.

To wit: Debt is neither good nor bad, but it is common. Thus, small debt and jaw-dropping over-the-top catastrophic debt are the same.

That guy is a waste of time.

Wow. Winning arguments with you is hard when you KO yourself at the ring of the bell.

 

[RobDownSouth]

Soon, Bam-Bam, the "fuck you" man, will bring us yet another hystorical moment:

The hyperinflation of 1914-1923 will be repeated 100 years later (that's 2014-2023 for those of you who majored in non-scientific studies).

"Uh, we inherited deficit spending when we came into office. Bush did it; wasn't me."

Hyperinflation? Reeeeeeally?

Wall Street Journal: Deflation Fears Stir In Developed Economies

Should've stayed in college, Karen.

 

[firespin]

Thanks to irresponsible monetary policy and the consequent relentless inflation, a dollar from 1926 would now be worth all of 8½¢. Put another way, a dollar from 1926 would be worth $12.50 today.

That certainly is putting it another way. A completely opposite way, in fact.

I think you meant the second sentence to read something else, like "You need $12.50 today to buy what $1 bought in 1926."

 

[Karen Kraft]

That certainly is putting it another way. A completely opposite way, in fact.

I think you meant the second sentence to read something else, like "You need $12.50 today to buy what $1 bought in 1926."

... while the value of gold remains essentially the same.

 

[Karen Kraft]

... while the value of gold remains essentially the same.

As the number of dollars increase in order to buy it.

 

[TurdFergeson]

Wishing for things doesn't make them happen.

 

[koalabear]

As the number of dollars increase in order to buy it.

lead can get you gold.

 

[Frisco_Slug_Esq]

Throb.





Eventually, we have to service Obama's debt.

You either raise taxes and destroy the citizen's buying power,
or you simply fire up the printing presses destroying the citizen's buying power...

In deflation, no one is buying, so you fire-sale...

By Paul Berkowitz

Contrary to what you are hearing in the media, the worst economic news may still lie ahead: A deflationary depression is descending upon us. Could it help the conservative movement? Breakneck federal printing of debt and dollars, gold and stocks rising, the dollar falling -- surely these trends presage inflation, or even hyperinflation. So goes the narrative across the media. But a contrarian and increasingly likely view is that deflation, not inflation, awaits.* What is deflation? How will it develop? How will it affect us? And what does it mean for the Democrats' future?

Most of us have known only inflation, in which prices rise over time. In deflation, prices fall. The last time this happened in the U.S. was during the Great Depression. Japan has been living it these last fifteen years.

A falling price trend is at first a benefit to consumers. But then it leads to a spiral of economic decline: a depression. Deflation occurs when money for whatever reason becomes scarce, and therefore more valuable. Lower prices are the effect. Producers starve for profits, which leads to layoffs, loan defaults, and bankruptcies. Borrowers find they have to repay with more expensive dollars, so they pay off their debts. Low debt throttles growth and slows purchases. Expensive dollars make exports less competitive. Unsold inventories waste away on the shelf, crumble in value, and must be sold at deep discounts. Prices fall further, and so on, in a vicious circle.

Normal downturns are triggered by cyclic imbalances in which supply temporarily exceeds demand. Growth pauses while inventory excesses are liquidated. This time, however, things are different. The triggering event was an asset valuation bubble -- high stock and real estate prices -- boosted excessively in a buying mania fueled by cheap credit during the last fifteen years. Lots of borrowing creates financial leverage, which pumps up profits during good times and wipes them out during bad. Consumer credit swelled with the aid of cheap mortgages and home equity lines. Businesses borrowed cheap short-term money and invested long-term, expecting to roll the loans over as profits expanded. Most significantly, bankers ran high ratios of what they lent out versus what they took in. All of this borrowing was encouraged by the Federal Reserve Board and Congress to foster social goals like full employment and high levels of homeownership. But the system eventually became unstable.

...

When Obama took office, conservatives grumbled that he would get an unearned lift in 2012 because the natural tendency of recessions to reverse themselves after two years would put the country on a positive trajectory just in time to lift him to a second term. The thing about deflationary depressions is their persistence. If Japan is a guide, we'll be seeing this one for a decade or more. Its ill effects should intensify within the 2010 election cycle.

It will be far from over, even by 2012. The depression will be terrible, but it could have a cleansing effect. We are already seeing the rejection of carbon taxation, for example, because of the hard times. The entire costly Democratic program to expand government against the deflationary backdrop will catch the public's anger and lead them to "throw the bums out."

Obama's economists, Larry Summers and Ben Bernanke, are smart enough to understand and see the lurking deflation, even if they publicly brag that the worst is over. They might even quietly suspect that their current policy mix will not stop deflation. So what have they told the boss? If they are speaking honestly, then Obama must already know how much pain is coming our way. Or are these generals cowering before their stern commander, who will shoot a messenger bringing unwelcome news? The mood must be pretty tense.

During the Iraq war, the Dems seemed to be rooting for military defeat as a tactic to win political victory. Their interests were contrary to the country's.** This time, in contrast, conservatives want recovery -- a development in alignment with the public interest, but which could also boost Democrat prospects. What Republicans wish for matters not. If depression develops, it will not come from conservative's wishing, but at least they will have the cold dish of revenge at the polls to relish.

*While the forecast is deflation for the next few years, inflation is still a long-term threat. Economic trends swing to and fro. A mild deflation could be followed by a mild inflation. Unfortunately, we may see a very deep deflation change into a hyperinflation as panicky anti-deflationary policies overshoot their mark.

December 22, 2009


Now Bernake says, for the life of me, I don't understand the gold prices...




** That would be YOU Throb...

 

[RobDownSouth]

Throb. Eventually, we have to service Obama's debt.You either raise taxes and destroy the citizen's buying power,
or you simply fire up the printing presses destroying the citizen's buying power...
In deflation, no one is buying, so you fire-sale...December 22, 2009 Now Bernake says, for the life of me, I don't understand the gold prices... ** That would be YOU Throb...

Internet tough guy AJ once again attempts to conflate my being against Bush's Iraq war with wanting our troops to be defeated.

 

[Karen Kraft]

Throb.





Eventually, we have to service Obama's debt.

You either raise taxes and destroy the citizen's buying power,
or you simply fire up the printing presses destroying the citizen's buying power...

In deflation, no one is buying, so you fire-sale...



December 22, 2009


Now Bernake says, for the life of me, I don't understand the gold prices...




** That would be YOU Throb...

Why bother trying to explain things to Throb? He's a floater. Time to flush.

 

[RobDownSouth]

Dead before 40

Why bother trying to explain things to Throb? He's a floater. Time to flush.

Feelin' any lumps on the boobs yet?

You will...

You will...

 

[Karen Kraft]

Please put RobDownSouth on your Ignore List. Thank you.

Unread Today, 08:30 AM

RobDownSouth
This message is hidden because RobDownSouth is on your ignore list.

If you enjoy participating in our threads here on the General Board, please put RobDownSouth on your Ignore List. Thank you.

 

[RobDownSouth]

Hyper-inflation is likely to start in early January 2010.

I flatly challenge this. I say hell fucking no.
<snip>You call hyperinflation by Jan 2010. I call bullshit. I hope people are marking this to see whose prediction is more accurate.

Hell, if hyperinflation does happen it won't even matter who's right...

Well, okay then. The predictions are set. We shall see.

Eighteen months on, and nary a peep about hyperinflation on US economic radar screens.

Food inflation, in fact, is at historic lows.