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View Full Version : Gold at $1270 and Hyperinflation


juanni
September 14, 2010, 09:56
Well gold is up a bit this morn'.

John Williams of Shadow Stats, Hyperinflation may start in 6-9 months.

Lets get this party started. (http://www.zerohedge.com/article/john-williams-sees-onset-hyperinflation-little-6-9-months-fed-tap-dances-land-mine)



...............juanni

Skilter
September 14, 2010, 10:09
good. It can't come soon enough. Deflationary pricing in the insurance world is killing me.

gates
September 14, 2010, 10:24
This cat is predicting a U.S. Dollar currency collapse in the next 6-9 months... nope don't see that happening. Now, there may be a currency collapse in the next 6-9 YEARS which would result in hyperinflation - we're not done deleveraging - we have a fair piece to go IMO. Remember HYPERinflation happens when there is a total loss of confidence in the currency and people rush to spend all their cash on ANYTHING before it further devalues - we aint there yet and wont be in 6-9 months IMO.

juanni
September 14, 2010, 11:08
Originally posted by gates
This cat is predicting a U.S. Dollar currency collapse in the next 6-9 months... nope don't see that happening. Now, there may be a currency collapse in the next 6-9 YEARS which would result in hyperinflation - we're not done deleveraging - we have a fair piece to go IMO. Remember HYPERinflation happens when there is a total loss of confidence in the currency and people rush to spend all their cash on ANYTHING before it further devalues - we aint there yet and wont be in 6-9 months IMO.

Hyperinflation starts when enough people lose confidence in a government and its currency, and act on it......it snowballs rapidly from there.
Loss of confidence does not require deleveraging to be complete.

Loss of confidence occurs from observing year after year of defict spending, the widespread use of unsustainable private and public Ponzi schemes, corrupt markets without any sign of enforcement, trivial fines when there is enforcement, a Central Bank and Treasury that all their publically proclaimed goals are never reached, watching us spend billions on wars that we never really win anything of consequence, and general political inability to solve any of the deep structural problems our country currently has and has had for generations.

Who really has faith that our leaders can turn it around......well...beside jokker?
And his time frame is several decades. :rolleyes:
Like we have that kind of time.

Like any trend, crash or bubble, some will get out too early, some will get out at the top, some will follow the panicky herd and some will get stuck with the McMansions, tulips and Zimbabwe notes. :eek:


.............juanni

gates
September 14, 2010, 11:24
J - as long as the SS and UI and welfare checks keep rolling in and gas isnt $5/gal I dont see the public panicking anytime soon but... I never say never.

juanni
September 14, 2010, 11:37
Originally posted by gates
J - as long as the SS and UI and welfare checks keep rolling in and gas isnt $5/gal I dont see the public panicking anytime soon but... I never say never.

That loss of confidence don't have to originate inside the US when we have papered the world. ;)



............juanni

gates
September 14, 2010, 11:47
correct - but im betting on our 6000 nukes and 11 carrier groups to keep the Chinese in line - for a while:-)

juanni
September 14, 2010, 12:10
Originally posted by gates
correct - but im betting on our 6000 nukes and 11 carrier groups to keep the Chinese in line - for a while:-)

I dunno,,,,, don't see how us threatening to nuke the Chinese and them of course nuking us,,,,etc,,,etc,,, and killing the planet would benefit the Elite that could care less about anybody or any particular country but themselves who happen to live on that same soon to be DEAD planet,,,,, the only one we know of that is inhabitable if the Chinese try to dump the dollar.

Why would the Elite do that?

And why would the Chinese take it seriously?


.............juanni

gates
September 14, 2010, 12:21
I dont know bro but I'm pretty sure that the U.S. would consider blowing up our economy an act of war - I honestly dont know how everyone would react BUT the Chinese KNOW we have the ability - the will is another issue. if you think about it the Chinese really don't benefit from dumping our dollar wholesale - we are their second largest trading partner and even if we default - through devaluation or outright they STILL survive - why risk a hot war over money that can be re-earned - does not make sense to me.

juanni
September 14, 2010, 12:31
The first one that bolts benefits, the herd goes to the slaughterhouse :)

The Elite, the Ultra Wealthy, the Connected aren't going to kill the planet and themselves because some silly green pieces of paper that they created, manipulated and had a fun ride with for 100 years turned out to be valueless. :wink:


.............juanni

gates
September 14, 2010, 12:37
Thats why they are doing it quietly J - in order for a collapse to happen they would have to do it on a massive obvious scale - just dont see it in the next 6-9 months-BUT you are correct, when the music stops the first one to the door wins.

CG&L
September 14, 2010, 15:33
The US is years from total collapse, if it ever happens. It took Mugabe decades to destroy Zimbabwe

I see more of a spiral to Argentina's economic position or, at the worst, 1930's Germany. It would take something big for us to become Zimbabwe or North Korea


The only real question is "Are we past the event horizon?"


Even when we've found the bottom, there will have to be some event to trigger the total collapse.

1gewehr
September 14, 2010, 16:26
Originally posted by CaptainJ
The US is years from total collapse, if it ever happens. It took Mugabe decades to destroy Zimbabwe


I disagree. Mugabe has millions of US and Brit foreign aid to prop up his thugocracy. When the American people lose faith in the dollar, there will be nothing to help it.

And with fiat currency, the only thing that makes it worth anything is faith. And faith in the dollar is getting very thin. When it pops, it will happen VERY quickly.

Since it is only faith that keeps the dollar afloat, a lot will depend upon our November elections. Will people perceive that our choice of representatives will be more, or less likely to make sound economic choices? Certainly, if the current bunch of idiots stays in power, I see a run on the banks as being much more likely.

ephv
September 14, 2010, 18:27
Well- Whatever happens! I hope it doesn't do it before the new "Red Dawn" comes out in November. I need to watch it so I'll know what to do.:shades: :beer:

gates
September 14, 2010, 18:29
HA! I'm with you bro! don't think you have to worry about Nov.:-) I want to see that movie too.

mitchellh
September 14, 2010, 18:51
Originally posted by ephv
Well- Whatever happens! I hope it doesn't do it before the new "Red Dawn" comes out in November. I need to watch it so I'll know what to do.:shades: :beer:

I thought they ceased production on the Red Dawn remake?

CG&L
September 14, 2010, 18:53
1gewehr


You may end up being right .


Zimbabwe had inflation of 250 million% before it could no longer be calculated and an incompetent government

This is the rub
The US$ is the world's reserve currency and has a good government system with an incompetent leader.
No Finical Minister or any official in any country wants to see their monetary system crash along with the US and will fight to prevent such inflation in the US. The rest of the world is hoping Americans aren’t stupid enough to re-elect Odummy


What I see is a downward economic/financial spiral for the US until we are no longer economically relevant to the rest of the word.
The US$ will have no value when the rest of the world is forced to cut its losses and accept the SDR as the world currency.
With our military out of fuel and unable to pay its soldiers, the US will be a toothless, old lion from a by-gone era.


I think we’ll have a worse depression than the Great Depression but we will not end up like Zimbabwe
I don’t want to paint a rosy picture but with the direction of our current leadership it looks as though we will end up more like Cuba but with a dumber version of Castro. I think Obullshit is here to stay “Mugabe style”

brunop
September 14, 2010, 18:57
Originally posted by ephv
Well- Whatever happens! I hope it doesn't do it before the new "Red Dawn" comes out in November. I need to watch it so I'll know what to do.:shades: :beer:

Best post of the day. LMAO.

Peace.

Enquiring Minds
September 14, 2010, 20:14
CONsidering who's running Treasury, Duh Fed, FDIC, CFTC, SEC, and Obama's entire economic team--and the Chief of Staff and entire rest of the Obummer Admin for that matter--this thread sounds very, very... anti-Semitic?

Bad First Amendment, BAD-BAD!


But yes, after delving into 'Why The Real Estate Boom Can't Bust' by David Lereah, and endorsed by all sorts of Fraudie Mac and Phony Mae and Fed "luminaries", I gotta say YEP, we izz in for a TRAIN WRECK... timing will be tough... due in no small part to DELIBERATELY MISLEADING PROPAGANDA via the usual "organs" of the MSM... learning to read between the lines of the Newspeak will greatly improve your timing.

kychas
September 14, 2010, 22:02
after the election is going to be a very interesting time!
if the dumocreeps get thrashed then they have nothing to lose and will push for all the left wing crap they can try to push threw before the congress critters get seated, new laws and regs that will probably not over turned with Zero in office to veto everything.