I'm surprised the parent post got negative karma points. Do people think inflation is natural/necessary? It is a way for the government to tax/steal honest labor from its citizens. Are people that naive?
You're not being a pompous prick at all; in fact, your arguments are thorough and to the point. And I do admit I am using dramatic statistics, but it is because I am trying to present evidence to an audience unfamiliar to the area of topic.
And the statistics are dramatic ....well...because they are. That's how bad things are.
I was talking more about the economy with my list.
As far as deflation is concerned, there's deflation in things we want (houses, cars, luxury items), and inflation in things we need (food, oil, gas, utilities).
You believe the same Fed that gave bankers billions of dollars and is actively working against congress to be audited, is going to 'decrease the money supply', ignore our huge debt and save us all?
You are drinking alot of government kool-aid. Keep watching CNBC.
You assume US can just slam on the brakes and the brakes would stop the car completely. When in fact, with the massive amount of baby boomers retiring/draining SS and medicare, the disappearance of our manufacturing sectors, the increasing commodity (food, oil) prices, and the need to pay back 100T+ debt owed to foreign countries and to ourselves, I suggest that it is impossible.
Regarding the currency crash, actually you just need one country (i.e Russia) or a hedge fund dumping a large amount of dollars, forcing others to dump theirs as well in a speedy fashion (kinda like everybody rushing toward the fire exit when someone triggered an alarm)
True....to a degree. Our agriculture exports would soar. But alot of other things we produce are complex/advanced products, which depends on cheap parts/oil from....other countries.
As for the military, well, China will pick a good time to crash the dollar (when they've liquidated most of their dollar reserves). Then they'll be able to bring US to its knees without firing a single bullet. Why shouldn't they? it's their turn to be the empire.
hyperinflation has to do with a loss of faith in the currency. Foreign debt holders know that this America empire is sailing into sunset, and has no way to pay its trillions of dollars back. They'll all dump it one night, causing the dollar to drop 30-40%
People are walking away from debt obligations.
- mortgages (12% of all mortgage, 50% subprime, 50% options)
- credit cards (13% default)
- personal bankruptcies (up 28% in second quarter)
federal/states/local governments are walking away from debt obligation
- pension reduction
- massive printing of dollar, $250B treasury selling this week
Companies are walking away from debt obligation
- commercial mortgages delinquency up 586% this half
- pension discharged by bankruptcy
Guess who's paying for this. That's right; the taxpayers.
So. Are you the sucker that's gonna keep on paying taxes?
All these you can google yourself (too many links to list here) I didn't come here to list all the bad things, since I doubt you even comprehend 1% of the atrocities. Therefore, I kept it simple for you.
I didn't feel like working so that my neighbor can walk away from their mortgage and my relatives can walk away from their credit card debt. So I don't anymore.
Those investors (no idea what they were doing to begin with) already got spooked by the 60% drop and pulled out of 401k/into bonds. I mean the average investors who have some knowledge of the market, and have decent capital (20k-200k) but is just trading normally using online trading services.