How to protect against hyperinflation and destruction of the US dollar

[greekfire]

peterb, thanks for the insights. What does your analysis say about a potential war with Iran or some other “problem” nation? On the one hand war seems like a bad move, on the other, it seems like the lazy-man’s solution out of this mess. Your thoughts?

[pedrocon]

Arraya had an interesting outlook that I haven’t considered deflation + devaluation. Most people have either professed inflation + devaluation or deflation + appreciation.

Perhaps, deflation + devaluation implies that the US and its currency will become irrelevant. Knowing the US and its gunboat diplomacy style of foreign policy, we won’t go down without a fight and I think thats where the Iran war may come into play.

[pedrocon]

Arraya had an interesting outlook that I haven’t considered deflation + devaluation. Most people have either professed inflation + devaluation or deflation + appreciation.

Perhaps, deflation + devaluation implies that the US and its currency will become irrelevant. Knowing the US and its gunboat diplomacy style of foreign policy, we won’t go down without a fight and I think thats where the Iran war may come into play.

[pedrocon]

Arraya had an interesting outlook that I haven’t considered deflation + devaluation. Most people have either professed inflation + devaluation or deflation + appreciation.

Perhaps, deflation + devaluation implies that the US and its currency will become irrelevant. Knowing the US and its gunboat diplomacy style of foreign policy, we won’t go down without a fight and I think thats where the Iran war may come into play.

[pedrocon]

Arraya had an interesting outlook that I haven’t considered deflation + devaluation. Most people have either professed inflation + devaluation or deflation + appreciation.

Perhaps, deflation + devaluation implies that the US and its currency will become irrelevant. Knowing the US and its gunboat diplomacy style of foreign policy, we won’t go down without a fight and I think thats where the Iran war may come into play.

[pedrocon]

Arraya had an interesting outlook that I haven’t considered deflation + devaluation. Most people have either professed inflation + devaluation or deflation + appreciation.

Perhaps, deflation + devaluation implies that the US and its currency will become irrelevant. Knowing the US and its gunboat diplomacy style of foreign policy, we won’t go down without a fight and I think thats where the Iran war may come into play.

[peterb]

An event like a war or something of this magnitude is called a “Black Swan” event. And there’s a lot of talk about these kinds of things. And I think there’s something to this. Since it’s controlled entirely by people rather than nature. But it’s also very political, and politicians are always gauging what the polity can tolerate. And I think they know our appetite for conflict is very low right now.

I think there’s something worth considering in this concept of deflation and devaluation…prices.
This seems like what we’re really all concerned with since it is the reflection of purchasing power as well as how well are our investments are storing/holding value.

From my experience, prices are all about supply and demand. Supply is huge out there in the world today. For prices to rise, there needs to be demand from somewhere in the world or shrinking supply. I see niether at this time. Too many homes, too much capacity in factories around the world. Wages not rising, credit being pulled back at an alarming rate. debt being defaulted on at an alarming rate. I’ve heard all about “moral hazard”. This is BS as there’s a consequence for defaults. It is credit destruction. And that’s pretty lethal in today’s world.

So, from my perspective, we are out of balance in a big way. wage stagnation, rising unemployment and credit destruction verses huge supply capacity. This is why I have such a strong belief that we’re in deflation. Not to mention that prices are falling like rocks all over the place. The main arguement everyone is using for inflation is that there’s a lot of new currency being created. I still contend that this is nothing compared to what’s being destroyed. And furthermore, this new currency has to be employed towards something to have an effect on supply/demand. I dont see it. There’s no velocity of this new currency. Debt defaults are stalling everything. The Fed can cut all they want and congress can pass all the crap they’re busy doing. Until the govt steps in and starts spending like there’s no tomorrow (Artificial demand), these things will have no effect on the market. Or, the world finds a new object to become the next bubble.

[peterb]

An event like a war or something of this magnitude is called a “Black Swan” event. And there’s a lot of talk about these kinds of things. And I think there’s something to this. Since it’s controlled entirely by people rather than nature. But it’s also very political, and politicians are always gauging what the polity can tolerate. And I think they know our appetite for conflict is very low right now.

I think there’s something worth considering in this concept of deflation and devaluation…prices.
This seems like what we’re really all concerned with since it is the reflection of purchasing power as well as how well are our investments are storing/holding value.

From my experience, prices are all about supply and demand. Supply is huge out there in the world today. For prices to rise, there needs to be demand from somewhere in the world or shrinking supply. I see niether at this time. Too many homes, too much capacity in factories around the world. Wages not rising, credit being pulled back at an alarming rate. debt being defaulted on at an alarming rate. I’ve heard all about “moral hazard”. This is BS as there’s a consequence for defaults. It is credit destruction. And that’s pretty lethal in today’s world.

So, from my perspective, we are out of balance in a big way. wage stagnation, rising unemployment and credit destruction verses huge supply capacity. This is why I have such a strong belief that we’re in deflation. Not to mention that prices are falling like rocks all over the place. The main arguement everyone is using for inflation is that there’s a lot of new currency being created. I still contend that this is nothing compared to what’s being destroyed. And furthermore, this new currency has to be employed towards something to have an effect on supply/demand. I dont see it. There’s no velocity of this new currency. Debt defaults are stalling everything. The Fed can cut all they want and congress can pass all the crap they’re busy doing. Until the govt steps in and starts spending like there’s no tomorrow (Artificial demand), these things will have no effect on the market. Or, the world finds a new object to become the next bubble.

[peterb]

An event like a war or something of this magnitude is called a “Black Swan” event. And there’s a lot of talk about these kinds of things. And I think there’s something to this. Since it’s controlled entirely by people rather than nature. But it’s also very political, and politicians are always gauging what the polity can tolerate. And I think they know our appetite for conflict is very low right now.

I think there’s something worth considering in this concept of deflation and devaluation…prices.
This seems like what we’re really all concerned with since it is the reflection of purchasing power as well as how well are our investments are storing/holding value.

From my experience, prices are all about supply and demand. Supply is huge out there in the world today. For prices to rise, there needs to be demand from somewhere in the world or shrinking supply. I see niether at this time. Too many homes, too much capacity in factories around the world. Wages not rising, credit being pulled back at an alarming rate. debt being defaulted on at an alarming rate. I’ve heard all about “moral hazard”. This is BS as there’s a consequence for defaults. It is credit destruction. And that’s pretty lethal in today’s world.

So, from my perspective, we are out of balance in a big way. wage stagnation, rising unemployment and credit destruction verses huge supply capacity. This is why I have such a strong belief that we’re in deflation. Not to mention that prices are falling like rocks all over the place. The main arguement everyone is using for inflation is that there’s a lot of new currency being created. I still contend that this is nothing compared to what’s being destroyed. And furthermore, this new currency has to be employed towards something to have an effect on supply/demand. I dont see it. There’s no velocity of this new currency. Debt defaults are stalling everything. The Fed can cut all they want and congress can pass all the crap they’re busy doing. Until the govt steps in and starts spending like there’s no tomorrow (Artificial demand), these things will have no effect on the market. Or, the world finds a new object to become the next bubble.

[peterb]

An event like a war or something of this magnitude is called a “Black Swan” event. And there’s a lot of talk about these kinds of things. And I think there’s something to this. Since it’s controlled entirely by people rather than nature. But it’s also very political, and politicians are always gauging what the polity can tolerate. And I think they know our appetite for conflict is very low right now.

I think there’s something worth considering in this concept of deflation and devaluation…prices.
This seems like what we’re really all concerned with since it is the reflection of purchasing power as well as how well are our investments are storing/holding value.

From my experience, prices are all about supply and demand. Supply is huge out there in the world today. For prices to rise, there needs to be demand from somewhere in the world or shrinking supply. I see niether at this time. Too many homes, too much capacity in factories around the world. Wages not rising, credit being pulled back at an alarming rate. debt being defaulted on at an alarming rate. I’ve heard all about “moral hazard”. This is BS as there’s a consequence for defaults. It is credit destruction. And that’s pretty lethal in today’s world.

So, from my perspective, we are out of balance in a big way. wage stagnation, rising unemployment and credit destruction verses huge supply capacity. This is why I have such a strong belief that we’re in deflation. Not to mention that prices are falling like rocks all over the place. The main arguement everyone is using for inflation is that there’s a lot of new currency being created. I still contend that this is nothing compared to what’s being destroyed. And furthermore, this new currency has to be employed towards something to have an effect on supply/demand. I dont see it. There’s no velocity of this new currency. Debt defaults are stalling everything. The Fed can cut all they want and congress can pass all the crap they’re busy doing. Until the govt steps in and starts spending like there’s no tomorrow (Artificial demand), these things will have no effect on the market. Or, the world finds a new object to become the next bubble.

[peterb]

An event like a war or something of this magnitude is called a “Black Swan” event. And there’s a lot of talk about these kinds of things. And I think there’s something to this. Since it’s controlled entirely by people rather than nature. But it’s also very political, and politicians are always gauging what the polity can tolerate. And I think they know our appetite for conflict is very low right now.

I think there’s something worth considering in this concept of deflation and devaluation…prices.
This seems like what we’re really all concerned with since it is the reflection of purchasing power as well as how well are our investments are storing/holding value.

From my experience, prices are all about supply and demand. Supply is huge out there in the world today. For prices to rise, there needs to be demand from somewhere in the world or shrinking supply. I see niether at this time. Too many homes, too much capacity in factories around the world. Wages not rising, credit being pulled back at an alarming rate. debt being defaulted on at an alarming rate. I’ve heard all about “moral hazard”. This is BS as there’s a consequence for defaults. It is credit destruction. And that’s pretty lethal in today’s world.

So, from my perspective, we are out of balance in a big way. wage stagnation, rising unemployment and credit destruction verses huge supply capacity. This is why I have such a strong belief that we’re in deflation. Not to mention that prices are falling like rocks all over the place. The main arguement everyone is using for inflation is that there’s a lot of new currency being created. I still contend that this is nothing compared to what’s being destroyed. And furthermore, this new currency has to be employed towards something to have an effect on supply/demand. I dont see it. There’s no velocity of this new currency. Debt defaults are stalling everything. The Fed can cut all they want and congress can pass all the crap they’re busy doing. Until the govt steps in and starts spending like there’s no tomorrow (Artificial demand), these things will have no effect on the market. Or, the world finds a new object to become the next bubble.

[stockstradr]

Gold falling this morning.
No surprise.
Right on schedule.

What I am surprised by is that stock markets only had only a couple % of rally in ’em this morning. Then markets dropped back. Come on. Pathetic.

But I haven’t given up on the idea that short-term, we’re within 5% of the bottom (stocks that is)

[stockstradr]

Gold falling this morning.
No surprise.
Right on schedule.

What I am surprised by is that stock markets only had only a couple % of rally in ’em this morning. Then markets dropped back. Come on. Pathetic.

But I haven’t given up on the idea that short-term, we’re within 5% of the bottom (stocks that is)

[stockstradr]

Gold falling this morning.
No surprise.
Right on schedule.

What I am surprised by is that stock markets only had only a couple % of rally in ’em this morning. Then markets dropped back. Come on. Pathetic.

But I haven’t given up on the idea that short-term, we’re within 5% of the bottom (stocks that is)

[stockstradr]

Gold falling this morning.
No surprise.
Right on schedule.

What I am surprised by is that stock markets only had only a couple % of rally in ’em this morning. Then markets dropped back. Come on. Pathetic.

But I haven’t given up on the idea that short-term, we’re within 5% of the bottom (stocks that is)

[Author]

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