Home › Forums › Financial Markets/Economics › Risk of hyperinflation serious now?
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livinincali.
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October 13, 2011 at 12:32 AM #19195October 13, 2011 at 12:52 PM #730586
poorgradstudent
ParticipantThe rich in this country have the most to lose if we suffer hyperinflation, so there’s no way they will let it happen. Hyperinflation destroys assets and erases debts.
October 13, 2011 at 7:01 PM #730620GH
Participant[quote=poorgradstudent]The rich in this country have the most to lose if we suffer hyperinflation, so there’s no way they will let it happen. Hyperinflation destroys assets and erases debts.[/quote]
Of course by not allowing hyperinflation they will continue to see their assets devalue eventually to near zero as debtors default and hard assets, stocks etc decline in value.
I believe it in the interest of the rich who largely own hard assets to want to inflate their value not deflate.
It is Seniors on SS and fixed pensions who are fighting inflation while at the same time complaining their earnings on investments are in the crapper.
October 13, 2011 at 7:53 PM #730624kev374
ParticipantI believe SS and other stuff is indexed to inflation, it’s us private sector workers that will be screwed… businesses will be way behind the curve in increasing wages to match inflation.
October 13, 2011 at 8:48 PM #730631Dougie944
ParticipantNo hyperinflation in sight. Only periodic bouts of deflation ahead, followed by periods of slow growth. Low rates of return will be the norm. We are following the Japanese model of the last 20 years.
October 14, 2011 at 3:50 PM #730718EconProf
ParticipantI agree hyperinflation is highly unlikely in our current weak economy. As to who would be helped or hurt, those with a highly leveraged balance sheet–whether personal, business, or government would be beneficiaries, as the value of the future payments decreases. Those hurt would be anyone owed that money, such as holders of long-term bonds, mortgage lenders, etc.
Yes, our situation increasingly resembles that of Japan, which has had two decades of near zero growth after their credit-driven real estate mania climaxing in about 1990. By the late 1980s it looked like Japan would take over the world. Now their stagnant economy, along with a demographic trend of low birth rates and actually declining population gives them a grim future. Their policy response to the stagnation also resembles ours–easy monetary policy with near zero interest rates combined with the fiscal stimulus of massive and arguably unneeded infrastructure is a little like ours. Their reputation for quality products and a hard-working population seems to be carrying them for now.October 14, 2011 at 8:18 PM #730735peterb
ParticipantWhen you consider that we really have not gone anywhere, economically, for 10 years…we’re looking very much like Japan. The US is not a net exporter like Japan, but it does have the worlds reserve currency. This will cause the US$ to get stronger every time there’s a flight to safety. This can go on a lot longer than most people think.
Hyperinflation has historically been the result of desperate nations when they can no longer borrow. I don’t think a world reserve currency has ever experienced hyperinflation. Check Rogoff’s latest book for how the whole thing will unravel.
October 14, 2011 at 9:35 PM #730739paramount
ParticipantA recession is an inflation killer.
October 16, 2011 at 8:52 PM #730802moneymaker
ParticipantI’m hoping certain stocks hyperinflate as they cater to the masses that have jobs overseas. Where is that list, oh yeah, found it!
April 17, 2014 at 5:05 PM #772992jrpadoo
ParticipantIt’s April,2014. Foreign country’s are forming trading agreements to usurp the Dollar. Dr. Paul Craig Roberts reports that this will undermine the reserve status of the dollar. Period. There is speculation there will be a 2 tiered dollar, one for foreign country’s, and the other devalued dollar for us folks. Either way, precious metals stand to gain as China and Russia clearly hold the Gold, and as the saying goes: He who holds the Gold makes the Rules. Meanwhile, our peddlie assed govt can’t deliver a fraction of the German Gold it’s supposedly holds in Ft Know. Meanwhile, JP Morgan sells a prime piece of Manhattan Real Estate at 1/3 of market value TO THE CHINESE. Ohh, did I mention there’s an underground vault the size of 3 football fields, and it happens to be right next to The Federal Reserve–which conveniently provides access doors to their vaults.
So we have the govt making under the table deals with the Chinese while we get smoked with Obummercare-and the bankers are all conveniently croaking over–Seriously, this is wilder than an fiction story–it must be in the water their drinking!April 17, 2014 at 5:23 PM #772995The-Shoveler
ParticipantThe most gold in private hands is also in the USA.
#1!!! by a long shot “United States”
8,133.5 78.3%
The United States holds the largest gold reserve in the world. With 8,133.5 tonnes, U.S. gold holdings are worth approximately $269.67 billion. This massive gold reserve represents about .9436 an ounce for every person living in the country.
The majority of the American gold is reported to be held in the world-famous United States Bullion Depository in Fort Knox, Kentucky, although there is some controversy that suggests otherwise. The remainder of the U.S. reserves are held at the Philadelphia Mint, the Denver Mint, the West Point Bullion Depository, and the San Francisco Assay Office.
The top ten largest owners of gold in the world are reported to control a total of 24,258.3 tonnes, or over 855 million ounces. At current spot prices, this gold would be worth approximately $804.35 billion and represents about 15.4% of all the gold ever mined.
We continue to urge all Gold World readers to buy and hold both gold and silver in anticipation of significantly higher precious metal prices.April 17, 2014 at 5:26 PM #772996spdrun
ParticipantOur of curiosity, why bring Obamacare into it?
April 17, 2014 at 5:27 PM #772997ParticipantChina and Russia are struggling just trying to not get overthrown by their own people LOL.
Why do you think we have so many Chinese buy USA RE LOL.April 17, 2014 at 11:46 PM #773019ParticipantWhat is the best way to buy small quantities of silver (not paper)?
April 18, 2014 at 9:12 AM #773024scaredyclassic
ParticipantMercury dimes.
Or Roosevelt dimes.
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