Melt Down
- Thread starter Stu
- Start date
Hi Chulo
Sorry i didn't get a chance to reply before the holidays began
You asked about inflation and deflation
There was a discussion about this on a recent episode of the Keiser report. The interview is with Peter Schiff and it begins at about 16:45
The gist is that the currency is going to fail; here's the link:
http://rt.com/programs/keiser-report/episode-383-max-keiser/
I'm constantly thinking about this. Sometimes I think it's a function of interest rates and bank liquidity based on how much cash the banks are sitting on which is heavily influenced by how much the federal reserve has given to the banks via quantitative easing. But most of the time and increasingly I am believing that it doesn't matter how much cash the banks have, it's all about employment. If employment is undervalued then deflation of the nominal value of assets is inevitable; simple as that. The U.S. federal reserve has leverage since interest rates are at near-zero, so even if inflation did start to happen they could easily hike up the interest rates and bring down the nominal value of assets. I'm just wondering to what extent they can hike rates and how effective this will be in reducing inflation. I wonder if there is some kind of equation for that somewhere or if one can be made. I also wonder how much quantitative easing in USD the federal reserve has done total over the past few years.
The reason I used to be more confused about it is because there have been historical cases of both inflation and deflation and I don't fully understand them. Argentina and Zimbabwe both experienced hyperinflation which sucked but it wasn't the end of the world. And Japan experienced a slow and gruesome deflationary recession which began in the early 1990's and didn't end until about 15 years later. They brought interest rates to zero like us and did all the quantitative easing but it didn't help them at all. I'm thinking more and more that the US is destined to repeat the deflationary recession that happened in Japan and that housing will unfortunately fall more before it bottoms out. I'm just wondering what Zimbabwe and Argentina did to cause inflation because they might have been in a totally different situation than the US. If you want to find out for me feel free cuz I'm too lazy right now. Also if you want to find out the total amount of QE that has been done in America that would be cool to know. Also... if you would grab me a beer while your at it that would be really cool. =)
I am constantly thinking about exactly this sort of stuff every day.
I wish I could stop thinking about it, but that is what they did.
I wish I could stop thinking about it, but that is what they did.
I've got you a nice bottle of Scottish heather ale....i hope that's to your liking:
The situation in Argentina, from what i understand, is that it got itself into hot water because it was following the 'financial restructuring' of the IMF. As soon as it stopped following the directions (demands) of the IMF it began to recover
As Michael Hudson explains in that clip i posted earlier the IMF is basically a vehicle for US interests. If i put my 'conspiratorial hat' on (or what i consider to be the 'what is actually happening hat') then i would say that the IMF is the creation of and vehicle for the interests of the corporate cabal behind the federal reserve bank
The IMF has been wreaking economic havoc around the world. John Pilger made a good documentary about the IMF's antics called 'war by other means'
The method of attack of the cabal is called 'neoliberalism' or the 'washington consensus'. They will try to dress it up as something good but in a nutshell what neoliberalism does is move wealth from the public into the hands of the corporate cabal. Argentina was being choked by the neoliberal mafia gang who run the federal reserve. Forget the corleones, they are a distraction....the real mafia control the central banks
Japan created stagflation through quantitative easing and is still in the doldrums
Zimbabwe shook of the yoke of colonialism but since then the colonial powers have sought to choke the life out of it and have done a pretty good job (much like they did with cuba when cuba refused to kowtow to the neoliberal mafia anylonger ie had a revolution)
It looks like the feds plans are doomed to fail. The conspiracy theorists will say that it is part of the plan and the cabal are using their usual 'problem reaction, solution' tactic of creating a problem (in this case hyperinflation and the trashing of the currency) to create a reaction from the public (''oh no i can't afford to eat anymore or pay my mortgage or fill the tank of my car....someone help us!!!'') so that they can then present their solution to the despairing public (a new currency managed through a globalist body eg the IMF's 'special drawing rights' so that they can then transition the US to a world government formed out of the UN)
i also can't be arsed to look up the QE figures
