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REPORT ABUSIVE REPLY
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Message Subject
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The Federal Reserve has pulled the plug on the US and Global Debt Bubble - Global Planned Financial Tsunami Has Just Begun
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Poster Handle
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Anonymous Coward |
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Post Content
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Bottom line is this:
Those who are saying we wont have high inflation (or even hyperflation), but instead will have deflation...dont get it.
Deflation will not be allowed by banks if it rears its head; the counter being immediate injection (if not over-injection) of money into the system. The massive coordinated QE over the past decades at points of fiscal crises has been shown to have increasingly less 'grunt' each time (i.e. must print/inject exponentially more each successive time to get the same - or even less - results).
Thus, even if deflation comes, the immediate response will be massive QE, and, ultimately, massive inflation (and weaker purchasing power).
Quoting: Anonymous Coward 80429789 If only it were that easy then there would never have been a Great Depression. You reach a point of diminishing returns. They lowered interest rates again and again until 0%. Then they started buying assets and QE. But eventually the system doesn’t work if people and businesses aren’t borrowing. People don’t understand that inflation is a feature not a bug. Ever since Bretton Woods was conceived, the idea was constant inflation which translates into GDP growth and economic expansion. But the gig is up. They can’t inflate anymore. Look at the M1 and M2, we are contracting not inflating. All price increases are a result of the attack on petroleum and food. If it wasn’t for that, the deflation would be much more obvious. But it’s inevitable. The credit bubble has burst. It’s game over. The Great Reset cometh. You don’t have to believe me - within 6 months it will become self evident as the price of everything craters. You might be looking at it from a very US-centric view. The global system though is far more complex: entwined, but not absolute. The world is not ready for a singular, over-arching new system as currently there's too many competing interests. In any case, gold will still be a safe bet. Every instance of deflation historically has shown that during deflation, its purchasing power increases. If a new system is implemented, but at the cost of people's life savings, livelihoods, and destruction of decades of labor/capital, then the backlash and revolt will be stupendous. So much so that only the imposition of a fairer system will be allowed, to mitigate the potential bloodshed (at both ends of the power/class structure) and chaos.
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