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| U.S. Hyperinflation Watch | |
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| Tweet Topic Started: 23 Oct 2009, 10:42 AM (322 Views) | |
| Ryan | 23 Oct 2009, 10:42 AM Post #1 |
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Intellectual
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Source Another interesting correlation to add to the evidence that the U.S. is under a high risk of hyperinflation. |
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| Benthamus | 25 Oct 2009, 05:43 PM Post #2 |
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Intellectual
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Well with the US's interest rates so low they should be able to combat it more effectivly. |
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| Ryan | 25 Oct 2009, 07:35 PM Post #3 |
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Intellectual
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It's the low interest rates that CAUSED this problem of cheap credit and will CREATE hyperinflation by simply running the printing press. What we need is to jack up interest rates real high and real fast if we ever want to save the USD. The Central Bank of Australia was the first major economy to raise its interest rates, and the Australian Dollar appreciated as a result. |
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| Benthamus | 25 Oct 2009, 07:49 PM Post #4 |
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Intellectual
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The Reserve Bank of Australia did increase interest rates and if the news here is anything to go by they will probably increase it more. Then again we were in a good position that at the start of the GFC our interest rates were at about 6% thus allowing us some maneouverability to lower them to stimulate the economy. In regards to the appreciating Australian dollar it is both a blessing and a curse. A blessing for the imports, but for the agricultural sector it is a bit of a curse as consumers move to cheaper markets. Furthermore if you pushed up interest rates real high and real fast it could possibly do more harm by stagnating an economy that is near recession. This could potentially cause more harm than good. |
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| Ryan | 25 Oct 2009, 07:56 PM Post #5 |
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Intellectual
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All of that is true. There is going to be short term pain no matter what. It's simply a result of the economic boom from the asset bubble (mostly in subprime mortgages). The recession and economic stagnation that will result will reset the economy back to health. The only thing is if the governments and CBs of the world keep interest rates low and release "stimulus packages" into the economies - we will have long term recession instead of a quick recession. We need to hurt for a while to get stronger - but they won't let us hurt, so we're going to enter a depression unless they cut their losses. |
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| Benthamus | 25 Oct 2009, 08:00 PM Post #6 |
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Intellectual
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That's where I believe Britian is heading. Their government debt is growing very large, and the bureaucracy is stifling private enterprise thus allowing no recovery. Australia seems pretty good but then again we had just come out of 11 years of Liberal/National party rule which focused heavily on budget surplus and ensuring the economy was in good health. |
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| Maxwell Wilder | 26 Oct 2009, 07:45 PM Post #7 |
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Veteran
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fuck that, end money GIFT ECONOMY (im drunk so ill come up with a defensive argument tomorrow whenever that is) |
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| Benthamus | 26 Oct 2009, 10:09 PM Post #8 |
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Intellectual
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We need money, or some form of medium (such as gold), to serve as a currency in our advancded economy. Perhaps if you are living in some sort of commune perhaps a gift economy would work but we are in the industrialised world and things would be much more complicated if it were not for a medium of exchange. |
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| Maxwell Wilder | 26 Oct 2009, 11:50 PM Post #9 |
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Veteran
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Why? |
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| Ryan | 27 Oct 2009, 09:29 AM Post #10 |
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Intellectual
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Money's most basic function is a medium of exchange. Without money, it's bartering - which requires a double coincidence of wants (if you want butter and I want bread, I had better find some butter if I'm not a dairy farmer). Money alleviates that need by having a medium that everyone is willing to hold and exchange for other goods. In a gift economy, there is also no incentive to trade or be anything other than complete isolated autarky except for those few good Samaritans. |
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9:25 AM Jul 11