FDIC is broke, but what does that mean?

[jonnycsd]

[quote=capeman]Another much much less likely scenario would be rates don’t peak at a reasonable/profitable level (much higher) and the currency collapses. Then money wouldn’t matter anyways in a Mad Max scenario like that. [/quote]

Why do you take it as a given that hyperinflation causes society to collapse? I was in Brazil when they had hyperinflation running 4 digits per year. Interestingly, you could still write checks for payments – and each check written had an interest rate assigned to compensate the seller for the week or so delay it took to clear funds. Within about 6 months, the Brazilian banking industry in cooperation with the government had revamped the process so that most checks cleared funds the same day they were written.

There was no chaos in the street – the busses ran, the markets sold food. It was very tough on the poor but society did not collapse. Now, after twice swapping out the entire currency they seem to have got it under control.

[capeman]

[quote=jonnycsd][quote=capeman]Another much much less likely scenario would be rates don’t peak at a reasonable/profitable level (much higher) and the currency collapses. Then money wouldn’t matter anyways in a Mad Max scenario like that. [/quote]

Why do you take it as a given that hyperinflation causes society to collapse? I was in Brazil when they had hyperinflation running 4 digits per year. Interestingly, you could still write checks for payments – and each check written had an interest rate assigned to compensate the seller for the week or so delay it took to clear funds. Within about 6 months, the Brazilian banking industry in cooperation with the government had revamped the process so that most checks cleared funds the same day they were written.

There was no chaos in the street – the busses ran, the markets sold food. It was very tough on the poor but society did not collapse. Now, after twice swapping out the entire currency they seem to have got it under control.[/quote]

For an example true hyperinflation on the scale of what could happen if they push the printing too far… look to Zimbabwe.

[capeman]

[quote=jonnycsd][quote=capeman]Another much much less likely scenario would be rates don’t peak at a reasonable/profitable level (much higher) and the currency collapses. Then money wouldn’t matter anyways in a Mad Max scenario like that. [/quote]

Why do you take it as a given that hyperinflation causes society to collapse? I was in Brazil when they had hyperinflation running 4 digits per year. Interestingly, you could still write checks for payments – and each check written had an interest rate assigned to compensate the seller for the week or so delay it took to clear funds. Within about 6 months, the Brazilian banking industry in cooperation with the government had revamped the process so that most checks cleared funds the same day they were written.

There was no chaos in the street – the busses ran, the markets sold food. It was very tough on the poor but society did not collapse. Now, after twice swapping out the entire currency they seem to have got it under control.[/quote]

For an example true hyperinflation on the scale of what could happen if they push the printing too far… look to Zimbabwe.

[capeman]

[quote=jonnycsd][quote=capeman]Another much much less likely scenario would be rates don’t peak at a reasonable/profitable level (much higher) and the currency collapses. Then money wouldn’t matter anyways in a Mad Max scenario like that. [/quote]

Why do you take it as a given that hyperinflation causes society to collapse? I was in Brazil when they had hyperinflation running 4 digits per year. Interestingly, you could still write checks for payments – and each check written had an interest rate assigned to compensate the seller for the week or so delay it took to clear funds. Within about 6 months, the Brazilian banking industry in cooperation with the government had revamped the process so that most checks cleared funds the same day they were written.

There was no chaos in the street – the busses ran, the markets sold food. It was very tough on the poor but society did not collapse. Now, after twice swapping out the entire currency they seem to have got it under control.[/quote]

For an example true hyperinflation on the scale of what could happen if they push the printing too far… look to Zimbabwe.

[capeman]

[quote=jonnycsd][quote=capeman]Another much much less likely scenario would be rates don’t peak at a reasonable/profitable level (much higher) and the currency collapses. Then money wouldn’t matter anyways in a Mad Max scenario like that. [/quote]

Why do you take it as a given that hyperinflation causes society to collapse? I was in Brazil when they had hyperinflation running 4 digits per year. Interestingly, you could still write checks for payments – and each check written had an interest rate assigned to compensate the seller for the week or so delay it took to clear funds. Within about 6 months, the Brazilian banking industry in cooperation with the government had revamped the process so that most checks cleared funds the same day they were written.

There was no chaos in the street – the busses ran, the markets sold food. It was very tough on the poor but society did not collapse. Now, after twice swapping out the entire currency they seem to have got it under control.[/quote]

For an example true hyperinflation on the scale of what could happen if they push the printing too far… look to Zimbabwe.

[capeman]

[quote=jonnycsd][quote=capeman]Another much much less likely scenario would be rates don’t peak at a reasonable/profitable level (much higher) and the currency collapses. Then money wouldn’t matter anyways in a Mad Max scenario like that. [/quote]

Why do you take it as a given that hyperinflation causes society to collapse? I was in Brazil when they had hyperinflation running 4 digits per year. Interestingly, you could still write checks for payments – and each check written had an interest rate assigned to compensate the seller for the week or so delay it took to clear funds. Within about 6 months, the Brazilian banking industry in cooperation with the government had revamped the process so that most checks cleared funds the same day they were written.

There was no chaos in the street – the busses ran, the markets sold food. It was very tough on the poor but society did not collapse. Now, after twice swapping out the entire currency they seem to have got it under control.[/quote]

For an example true hyperinflation on the scale of what could happen if they push the printing too far… look to Zimbabwe.

[bsrsharma]

jonnycsd,

That is an interesting observation about Brazil. I think people have extreme fear of inflation due to stories about Weimar Germany (http://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html) and more recently pictures of Zimbabwe’s currency with 15 digits. But U.S. inflation will be more like that in the 1970s, not even as much as Brazil. In fact, I think, people were not in extreme hardship during 1972-82. I don’t think there is any report of widespread homelessness or hunger (like in the 1930s).

[bsrsharma]

jonnycsd,

That is an interesting observation about Brazil. I think people have extreme fear of inflation due to stories about Weimar Germany (http://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html) and more recently pictures of Zimbabwe’s currency with 15 digits. But U.S. inflation will be more like that in the 1970s, not even as much as Brazil. In fact, I think, people were not in extreme hardship during 1972-82. I don’t think there is any report of widespread homelessness or hunger (like in the 1930s).

[bsrsharma]

jonnycsd,

That is an interesting observation about Brazil. I think people have extreme fear of inflation due to stories about Weimar Germany (http://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html) and more recently pictures of Zimbabwe’s currency with 15 digits. But U.S. inflation will be more like that in the 1970s, not even as much as Brazil. In fact, I think, people were not in extreme hardship during 1972-82. I don’t think there is any report of widespread homelessness or hunger (like in the 1930s).

[bsrsharma]

jonnycsd,

That is an interesting observation about Brazil. I think people have extreme fear of inflation due to stories about Weimar Germany (http://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html) and more recently pictures of Zimbabwe’s currency with 15 digits. But U.S. inflation will be more like that in the 1970s, not even as much as Brazil. In fact, I think, people were not in extreme hardship during 1972-82. I don’t think there is any report of widespread homelessness or hunger (like in the 1930s).

[bsrsharma]

jonnycsd,

That is an interesting observation about Brazil. I think people have extreme fear of inflation due to stories about Weimar Germany (http://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html) and more recently pictures of Zimbabwe’s currency with 15 digits. But U.S. inflation will be more like that in the 1970s, not even as much as Brazil. In fact, I think, people were not in extreme hardship during 1972-82. I don’t think there is any report of widespread homelessness or hunger (like in the 1930s).

[socrattt]

[quote=bsrsharma]jonnycsd,

That is an interesting observation about Brazil. I think people have extreme fear of inflation due to stories about Weimar Germany (http://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html) and more recently pictures of Zimbabwe’s currency with 15 digits. But U.S. inflation will be more like that in the 1970s, not even as much as Brazil. In fact, I think, people were not in extreme hardship during 1972-82. I don’t think there is any report of widespread homelessness or hunger (like in the 1930s).[/quote]

BS, you talk as if you have a clue about the amount of money being printed. You don’t have a clue nor does anyone here. I think we have printed enough to put us in a Zimbabwe like inflation scenario, but we are using other resources to combat this inflation. Will it get bad? Most likely and when it does it won’t be a walk in the park. You are crazy to believe it will be similar to the 70’s inflationary period. There are huge repercussions to our actions, unfortunately it is completely unpredictable at this point.

[socrattt]

[quote=bsrsharma]jonnycsd,

That is an interesting observation about Brazil. I think people have extreme fear of inflation due to stories about Weimar Germany (http://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html) and more recently pictures of Zimbabwe’s currency with 15 digits. But U.S. inflation will be more like that in the 1970s, not even as much as Brazil. In fact, I think, people were not in extreme hardship during 1972-82. I don’t think there is any report of widespread homelessness or hunger (like in the 1930s).[/quote]

BS, you talk as if you have a clue about the amount of money being printed. You don’t have a clue nor does anyone here. I think we have printed enough to put us in a Zimbabwe like inflation scenario, but we are using other resources to combat this inflation. Will it get bad? Most likely and when it does it won’t be a walk in the park. You are crazy to believe it will be similar to the 70’s inflationary period. There are huge repercussions to our actions, unfortunately it is completely unpredictable at this point.

[socrattt]

[quote=bsrsharma]jonnycsd,

That is an interesting observation about Brazil. I think people have extreme fear of inflation due to stories about Weimar Germany (http://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html) and more recently pictures of Zimbabwe’s currency with 15 digits. But U.S. inflation will be more like that in the 1970s, not even as much as Brazil. In fact, I think, people were not in extreme hardship during 1972-82. I don’t think there is any report of widespread homelessness or hunger (like in the 1930s).[/quote]

BS, you talk as if you have a clue about the amount of money being printed. You don’t have a clue nor does anyone here. I think we have printed enough to put us in a Zimbabwe like inflation scenario, but we are using other resources to combat this inflation. Will it get bad? Most likely and when it does it won’t be a walk in the park. You are crazy to believe it will be similar to the 70’s inflationary period. There are huge repercussions to our actions, unfortunately it is completely unpredictable at this point.

[socrattt]

[quote=bsrsharma]jonnycsd,

That is an interesting observation about Brazil. I think people have extreme fear of inflation due to stories about Weimar Germany (http://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html) and more recently pictures of Zimbabwe’s currency with 15 digits. But U.S. inflation will be more like that in the 1970s, not even as much as Brazil. In fact, I think, people were not in extreme hardship during 1972-82. I don’t think there is any report of widespread homelessness or hunger (like in the 1930s).[/quote]

BS, you talk as if you have a clue about the amount of money being printed. You don’t have a clue nor does anyone here. I think we have printed enough to put us in a Zimbabwe like inflation scenario, but we are using other resources to combat this inflation. Will it get bad? Most likely and when it does it won’t be a walk in the park. You are crazy to believe it will be similar to the 70’s inflationary period. There are huge repercussions to our actions, unfortunately it is completely unpredictable at this point.

[Author]

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