The international economy is about to crash. Bitcoin WILL explode upwards.

[Crypt_Current]

27% of all statistics are boner-fied bulldada.

[notme]

Helicopter Ben and his pals probably won't allow deflation. They seem to have a pathological fear of the 1930s.

With most of their balance sheet being bonds and the interest rates continuing to creep up, I'm not sure they can stop it.

Possibly not, but then again, they can print as many $$$ as they want. Ask Gideon Gono, he knows a thing or two about that.

Who will help them support the bond market if they devalue the dollar?  Certainly not me.

[Mike Christ]

27% of all statistics are boner-fied bulldada.

Up to 73% of all fake statistics could be fabrications.   

[🏰 TradeFortress 🏰]

sublime17, are you here to spread FUD or do you genuinely believe that the dollar will deflate? The Fed will not let that happen in any circumstance, they'd hyperinflate if they had to.

The Federal reserve can easily inject trillions into the economy at the first sign of widespread deflation. Banks were forced to take the bailout durning the GFC, btw.

[sublime5447]

100% serious read Richard duncan "the new great depression" read james richards "currency wars" The fed can print all it likes if people dont take out loans it will not enter the money supply. The fed can print but there are limits on the printing too. I would say that i am a free market, Austrian, but peter schiff is wrong about hyper inflation and the gold price, steve keen, nicole foss, richard duncan are right. We will have a deflationary collapse. Tradefortress you so understand what i mean when i say money is debt right? You do get that total debt must always grow right? You do understand that the only way the public sector could cut its debt is for the private sector to raise it debt right? You do understand that understand that all money is lent into existence right? and you do understand that if all debt where to be paid off public and private that money would no longer exist right? 

[sublime5447]

How about the quantity theory of money or I should say the quantity theory of credit (money is debt) do you know that? Do you know what milton freedman had to say about the causes of the great depression? That he correctly identified the cause of the great depression?

[notme]

sublime17, are you here to spread FUD or do you genuinely believe that the dollar will deflate? The Fed will not let that happen in any circumstance, they'd hyperinflate if they had to.

The Federal reserve can easily inject trillions into the economy at the first sign of widespread deflation. Banks were forced to take the bailout durning the GFC, btw.

The labor force will only tolerate this strategy for so long.  In the framework of Adam Smith there are three types of stakeholders in any venture: labor, capital, and land.  Labor earns wages, capital earns interest, and land earns rent.  All these roles may be filled by one person, or by several separate entities.  Many Americans fall into the category of labor only.  In the face of technological progress, the demand for labor falls as machines displace workers.  Capitalists see a short term bump in the interest they can earn (the rich get richer).  Landholders are who sees long term gains due to the finite amount of land (similar, but smaller gains happen with other durable assets but land is crucial for survival and you have to pay to use what you don't own).  High unemployment drives down wages and meanwhile businesses are figuring out how to do more with less.  $22k robots that can be shown what to do by unskilled workers will soon make us competitive with China in manufacturing, but unemployment will only go up until labor can be trained for the new jobs that didn't exist previously.  Many will be too old to recoup an investment in training and some will be unwilling or unable.  Things will get nasty as these laborers choose between low wage positions doing delicate things like clearing tables that will only exist temporarily and seeking alternative means of survival like crime.  Consumer demand will decline and prices will fall.  If this segment realizes the politicians are keeping prices artificially high heads will roll.  Hopefully only metaphorically.

See Chapter 11 of book one of Wealth of Nations for more.  There is a tl;dr conclusion section at the end.

[sublime5447]

Here this is the correct assessment of the global economy. You can thank me later

http://www.youtube.com/watch?v=iquemUNNYY8

[johnyj]

100% serious read Richard duncan "the new great depression" read james richards "currency wars" The fed can print all it likes if people dont take out loans it will not enter the money supply. The fed can print but there are limits on the printing too. I would say that i am a free market, Austrian, but peter schiff is wrong about hyper inflation and the gold price, steve keen, nicole foss, richard duncan are right. We will have a deflationary collapse. Tradefortress you so understand what i mean when i say money is debt right? You do get that total debt must always grow right? You do understand that the only way the public sector could cut its debt is for the private sector to raise it debt right? You do understand that understand that all money is lent into existence right? and you do understand that if all debt where to be paid off public and private that money would no longer exist right?  

Wow, that is very good description of today's debt driven system

Since FED is the lender of the last resort, there is a final solution: FED just burn those securites they bought from government and banks

After this, government and banks will be happy, all of their debts at FED are gone, no one lose anything. Of course FED took the loss, but since all their loss is just some digits, that affect nothing

Then next step, government and banks will have so much cash at hand and they will start to spend BIG, and there will be hyperinflation

So, FED still have lots of weapons in the reserve, they have not fired them yet. Recently they are buying MBS with a premium, that is a start of unloading the debt for banks, it is not the same as buying government bonds, but few has noticed that

[sublime5447]

http://www.youtube.com/watch?v=THelXGcKQd0 well worth watching. Steve keen is the man. Read "debunking economics".

I have some disagreement with the above post, but will post a reply later.

[meanig]

In the UK I'm seeing both inflation and deflation. Double digit inflation in the things that I can't do without such as food/utilities and strong deflation in the things I don't give a damn about.

We're already in a great depression here. The government is running a 6% deficit to get 0% GDP growth.

The decent into hyperinflation is in the hands of the public. With the best savings rates at around 1.5% gross it's only a matter of time before people empty their accounts to chase a decent yield.

My parents half jokingly said that they might convert their savings into tins of tomato soup. They would have got a 12% ROI if they had done it a year ago 

[cypherdoc]

http://www.youtube.com/watch?v=THelXGcKQd0 well worth watching. Steve keen is the man. Read "debunking economics".

I have some disagreement with the above post, but will post a reply later.

as much as i've cringed reading your ranting posts about Bitcoin's inevitable demise, i must say that when it comes to real economics, we think alot alike.

and we listen to the same guys.

[cypherdoc]

Here this is the correct assessment of the global economy. You can thank me later

http://www.youtube.com/watch?v=iquemUNNYY8

it was good watching that video for a second time.

so we agree on alot of the causes and the primacy of debt deflation.  Duncan himself says that going back to a gold std is a non starter.  but his solution involves contined trillion dollar deficits directed at high tech, such as solar. 

b/c this is essentially an inflationary strategy at all costs to prop up the ailing system, why is it that you can't understand that Bitcoin may be a solution?

[Xian01]

48% of Americans believe another great depression is likely to happen in the next 12 months.

48% of American adults drink one soft drink a day
48% of American citizens pay no taxes
48% of Americans are terrible at Financial planning
48% of Americans watch online videos
48% of Americans don't use all their vacation time
48% of Americans reject evolution
48% of American Democrats support gay marriage
48% of Americans think most members of Congress are corrupt
Only 48% of Americans know Presidential elections are held in November
48% of Americans say eating is their favorite leisure activity
48% of Americans believe BP knowingly violated oil drilling regulations in the Gulf of Mexico
48% of Americans spend more than an hour a day on the internet
48% of Americans say the most exciting place they have ever had sex was in a car

[Mike Christ]

Why can't America just be 50/50 on anything

[johnyj]

Here this is the correct assessment of the global economy. You can thank me later

http://www.youtube.com/watch?v=iquemUNNYY8

Thanks for sharing the video! I like the girl, she asked the core question: Why couldn't we just write off the private sector debts? Duncan said that one people's debt is another people's asset, this is true in micro level, but when it finally reached FED, it is not true anymore. From moral reason FED should not write off the debt (to create unfairness), but from technical point of view, they could write off the debt of the whole society (and create hyperinflation at meantime)

And I think Duncan mix the government with FED. Government and FED still have formal business relationship, government can not create credit as they wish, they have to lift debt limit first and FED has to buy their bond to give them cash

[DoomDumas]

The economy is going to have to restart. If the internet survives, Bitcoin will be the new currency going forward. For those who don't react in time, my condolences.

http://www.youtube.com/watch?feature=player_embedded&v=bYkl3XlEneA

48% of Americans believe another great depression is likely to happen in the next 12 months.

48% of the Americans are ignorant enough not to know tha the crysis as of now is already bigger than the so called Great Depression ('29).

+1

Much much bigger, nothing to compare..

the great deprssion is a joke compared to what the facts actually are.  I'm very surprised they have manage to bluff to whole world for so long.. (since 2009)

This will cause a lot of suffering

[DoomDumas]

48% of Americans believe another great depression is likely to happen in the next 12 months.

50% of Americans also believe that the sun revolves around the earth. your point?

A lot of american child do not recognize this, and can't name it :

[creativex]

...Dan Quayle?

[sublime5447]

Here this is the correct assessment of the global economy. You can thank me later

http://www.youtube.com/watch?v=iquemUNNYY8

it was good watching that video for a second time.

so we agree on alot of the causes and the primacy of debt deflation.  Duncan himself says that going back to a gold std is a non starter.  but his solution involves contined trillion dollar deficits directed at high tech, such as solar. 

b/c this is essentially an inflationary strategy at all costs to prop up the ailing system, why is it that you can't understand that Bitcoin may be a solution?

I do see digital currency as the answer and i do not agree with richard about the solution to our debt based system. His solution is perpetuation of the existing system. I know that P2P digital currency is the future. I have just been disillusioned with BTC as the savior I once thought it to be. I have also been very frustrated by the inability of the community to verify transactions and prevent fraud. What BTC desperately needs is a feedback system that is clear to see and easy to use and an alternative to stabilize price. I stand by my statement that btc is a manipulated market, that it is in a bubble and that the price swings are not in line with real market demand.

BTC is not a commodity, there is no comparison here. It is not a retirement plan, It is not a store of value (or it is very poor store of value).
BTC is money and should be used like it. At it's essence BTC is a promise (all money is) and is a promise that can be broken.   

So sometimes I know that i sometimes come off as anti BTC, that couldn't be further from the truth. I think it will change the world. I have mentioned this on a couple other post, but I truly believe that it can bring the whole world closer together and dismantle the war machines of the world. (i know, a pipe dream)