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Old 03-19-2013, 11:44 PM   #21
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Originally Posted by mike View Post:
The idea that deflation is bad is a myth perpetuated by banksters and governments.
Falling prices benefit everyone and increase the living standards of everyone. The only rebuttal you'll ever hear to my claim is that it hurts exports, but this is also not true because falling prices means production is cheaper as well, so you can afford to compete internationally. Conversely, you can ask, how does inflation improve exports? It doesn't of course, and look where it has brought us today.
Mike,

Inflation wouldn't be bad for me and you but, you must remember one thing and it will take away any thought that there could be any deflation.

"They can't tax deflation"

That's all there is needed to know.
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Old 03-20-2013, 04:55 AM   #22
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they seem to be developing a simple formula in Cyprus ..........
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Old 07-29-2013, 05:55 AM   #23
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Food price inflation is huge. No-one talks about it... at least for my pockets it's quite huge.

Official inflation is held low.

I don't know if this could be called "deflation"... the Fed is not telling the truth, simply. It's like living in a "lie-flation".

This would be deflation if they'd admit everything: real inflation rate, real value of the dollar (as they've already hyperinflated it with QE's, just tied the belt around so that no-one could see what they created).
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Old 10-02-2015, 07:44 AM   #24
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Rickards published a piece today on inflation/deflation:
Quote :
...
The Fed can cause massive inflation in 15 minutes. They can call a board meeting, vote on a new policy, walk outside and announce to the world that effective immediately, the price of gold is $5,000 per ounce.

The Fed can make that new price stick by using the Treasury’s gold in Fort Knox and the major U.S. bank gold dealers to conduct “open market operations” in gold. They will be a buyer if the price hits $4,950 per ounce or less and a seller if the price hits $5,050 per ounce or higher.

They will print money when they buy and reduce the money supply when they sell via the banks. This is exactly what the Fed does today in the bond market when they pursue QE. The Fed would simply substitute gold for bonds in their dealings. The Fed would target the gold price rather than interest rates.

Of course, the point of $5,000 gold is not to reward gold investors. The point is to cause a generalized increase in the price level. A rise in the price of gold from $1,000 per ounce to $5,000 per ounce is really an 80% devaluation of the dollar when measured in the quantity of gold that one dollar can buy.

This 80% devaluation of the dollar against gold will cause all other dollar prices to rise also. Oil would be $400 per barrel, gas would be $10.00 per gallon at the pump and so on. There it is — massive inflation in 15 minutes: the time it takes to vote on the new policy.

Don’t think this is possible? It has happened in the U.S. twice in the past 80 years. You may even know some people who lived through both episodes.

The first time was in 1933 when President Franklin Roosevelt ordered an increase in the gold price from $20.67 per ounce to $35.00 per ounce, nearly a 75% rise in the dollar price of gold. He did this to break the deflation of the Great Depression, and it worked. The economy grew strongly from 1934-36.

The second time was in the 1970s when President Richard Nixon ended the conversion of dollars into gold by U.S. trading partners. Nixon did not want inflation, but he got it.

Gold went from $35 per ounce to $800 per ounce in less than nine years, a 2,200% increase. U.S. dollar inflation was over 50% from 1977-1981. The value of the dollar was cut in half in those five years.

History shows that raising the dollar price of gold is the quickest way to cause general inflation. If the markets don’t do it, the government can. It works every time.

History also shows that gold not only goes up in inflation (the 1970s), but it also goes up in deflation (the 1930s). When deflation runs out of control, as it did in the 1930s and may again, the government will raise the price of gold to break the back of deflation. They have to — otherwise, deflation will bankrupt the country.

Do I expect deflation to run out of control soon? Actually, no. Deflation is a strong force now, but I expect that eventually the Fed will get the inflation they want — probably through forward guidance, currency wars and negative interest rates.

When that happens, gold will go up.

Still, if deflation does get the upper hand, gold will also go up if the Fed raises the price of gold to devalue the dollar when all else fails.

This makes gold the ultimate “all weather” asset class. Gold goes up in extreme inflation and extreme deflation. Very few asset classes work well in both states of the world. Since both inflation and deflation are possibilities today, gold belongs in every portfolio as protection against these extremes.
http://dailyreckoning.com/how-inflat...in-15-minutes/
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Old 10-02-2015, 01:54 PM   #25
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some extreme flation would be most appreciated,

as the kind we've been having has not been much fun for me

But then I don't really need it do I (-;
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Old 09-21-2016, 03:49 PM   #26
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We are 100% on our way to the deflationary cycle

I totally agree with all the stuff you said. I believe we are going to be heavily impacted by this upcoming cycle. Precious metals might be the new currency...
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Old 09-21-2016, 03:56 PM   #27
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Great post. I can tell you know what you're talking about. What's you opinion on the possibility of the dollar bill completely collapsing? Bottoms out. Worth absolutely nothing besides the paper it was printed on
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Old 09-24-2016, 09:28 AM   #28
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Quote :
What's you opinion on the possibility of the dollar bill completely collapsing?
When they are ready and theres a scapegoat in place.
Possibly Trumps role .........

I reckon that as long as a problem can be anticipated it can be 'managed'
Most of the 'black swans' being bandied about as catalysts will be in the above category.

Then it will be SDR's for a few more years.
Its only if they decide to underwrite the SDR with some gold backing that the metals are allowed to rise significantly.

Theres an argument that collapse will not be pretty and access to basic survival requirements become more important than metal holdings.
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Old 09-26-2016, 07:39 AM   #29
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You can hear the drumbeats for the war on cash accelerating. IMO, that's not an accident or coincidental to the risks in the current monetary system. It's in no one's best interest to see a disorderly breakdown in the dollar. But a managed (orderly) destruction could be a huge boon for the folks pulling the strings.
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Old 09-26-2016, 10:48 AM   #30
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Originally Posted by PMBug View Post:
You can hear the drumbeats for the war on cash accelerating. IMO, that's not an accident or coincidental to the risks in the current monetary system. It's in no one's best interest to see a disorderly breakdown in the dollar. But a managed (orderly) destruction could be a huge boon for the folks pulling the strings.
Not that I'm disagreeing with you in the slightest, but I've come to feel that while I often hear drumbeats, it's hard to tell how far off and what direction they are.
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Old 09-26-2016, 12:30 PM   #31
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I didn't mean to imply anything was imminent, but the WSJ et. al. publishing op eds and highlighting books to propagandize the necessity for eliminating cash is laying the groundwork for preparing the masses. I've said many times that I don't have a crystal ball and predicting timelines is a fool's errand. Trends on the other hand, are easy to spot. Doesn't mean they don't/won't get derailed, but watch out when they start gaining momentum.

The whole business with China getting a big foot in the IMF door and the G20 plans for the SDR have been percolating for years. When I first started raising the issue with folks I know in other corners of the internet (circa 2008), most thought I was so far out in left field that I wasn't even in the stadium. The dollar is not going to remain the world's reserve currency forever. And as the world transitions away from the dollar, we here in the USA are going to experience the financial/economic repercussions. This is the managed/orderly plan anyway (or so it seems). Global financial/economic catastrophe (ie. systemic failure) is still possible, so yay us.
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