This is part 1 of 3 of a video series focusing on the threat of hyperinflation. Iwill post the other two videos at some point in the near future. If you watch this and would like to see the 2nd and 3rd parts, you can find them easily on youtube. I would
encourage anyone, who has not read "The Creature From Jekyl Island", to watch this.
encourage anyone, who has not read "The Creature From Jekyl Island", to watch this.
Duncan,
ReplyDeleteNice video! Very articulate and concise.
An excellent debate, "inflation or deflation"? Great arguments coming from both [camps]. And actually, we could experience both for periods of time, so I guess technically, both views could be right.
Either way, it's gonna get very uncomfortable for the American Dream....
Any other thoughts out there?
I think the clear edge goes to inflation for many of the reasons mentioned in the 3 parts of this video. We are printing too much money, and propping up the market in areas where readjustments are necessary.
ReplyDeleteThe government likes to take credit for making things more affordable, but they are incapable of changing the real cost of anything. All thyey can do is map part of the cost for part of the population and hope that it works out. But it doesnt work out. It creates bubbles, devalues the dollar, and then creates recessions. The printing of money will only make this worse as out dollar looses trade value and out credibility becomes zero. Inflation is coming for sure
Well, the end result could end up being inflation or hyperinflation, BUT, before we get there, I still believe "deflation" could still be a viable threat.
ReplyDeleteConsider the words of Janet Yellen, President of the San Francisco Fed, "I'll put my cards on the table right away. I think the predominant risk is inflation will be too low, not too high, over the next several years". And, "if the economy fails to recover soon, it is conceivable that this very low inflation could turn into outright deflation".
In addition, consider Japan's fight with deflation, which has occured for more than a decade, and according to the Wall Street Journal, deflation has returned to Japan, as of Novemeber 2009....so, it's not over for them.
Some of the causes of such deflation for Japan are, they experienced a large "bubble" in real estate and equities. Insolvent banks have occured there too....sound familiar?
Some believe the path to "hyperinflation" comes through deflation.