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Metalworking (rec.crafts.metalworking) Discuss various aspects of working with metal, such as machining, welding, metal joining, screwing, casting, hardening/tempering, blacksmithing/forging, spinning and hammer work, sheet metal work. |
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#1
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End of the dollar?
On Mar 23, 9:42*am, "ATP*" wrote:
"Richard J Kinch" wrote in . 97.131... My musing and thesis: if hyperinflation of the dollar is coming, that it will happen blindingly fast because the "paper" dollars exist only as bits flipping in computers. *We will be surprised and unaware. *It will not be the Weimar Republic experience. Inflation no longer requires actual paper that would have to be printed in wheelbarrow loads to be carted about, like in previous collapses. Keys are pressed, buttons are clicked, and the government creates fiat money, freely convertible to paper notes, and moves it about. *I imagine in a week's time we could go from the current nervousness about a merely troubled economy to a worthless dollar that ceased to be accepted at home and abroad. *Surely the weekly glib injections of $trillions in "stimulus" is evidence of the authority and willingness to act in this new, unprecedented digital recklessness. *As paper money existed as an coerced acceptance of an authoritatively designated paper token, so money today is a coerced acceptance of authoritatively designated bits in some computer server somewhere. Spend some time with a textbook or Wikipedia and study how the Fed introduces money into the economy through securities sales and purchases which are gauged to achieve the targeted Federal Funds Rate, and how the money multiplier works. There is very little chance of what you are describing, particularly at this point, because banks want to reduce their leverage. Whether dollars are printed or electronically transferred is not really an issue, the difficulty of physically printing dollars has never been an impediment to hyperinflation in the past. So well written, but..... While it as true when as it was when Jesus talked about burying money, money out of circulation has no effect and money held is reserve will not cause inflation, but Obama's spending is going to dilute the circulating money supply quickly. The gov measures inflation with the cost of Asian TV sets, not energy, food, and rent. That keeps the COLA of social security down. Real inflation has doubled the cost of ammo in the last year. |
#2
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End of the dollar?
wrote in message ... On Mar 23, 9:42 am, "ATP*" wrote: "Richard J Kinch" wrote in . 97.131... My musing and thesis: if hyperinflation of the dollar is coming, that it will happen blindingly fast because the "paper" dollars exist only as bits flipping in computers. We will be surprised and unaware. It will not be the Weimar Republic experience. Inflation no longer requires actual paper that would have to be printed in wheelbarrow loads to be carted about, like in previous collapses. Keys are pressed, buttons are clicked, and the government creates fiat money, freely convertible to paper notes, and moves it about. I imagine in a week's time we could go from the current nervousness about a merely troubled economy to a worthless dollar that ceased to be accepted at home and abroad. Surely the weekly glib injections of $trillions in "stimulus" is evidence of the authority and willingness to act in this new, unprecedented digital recklessness. As paper money existed as an coerced acceptance of an authoritatively designated paper token, so money today is a coerced acceptance of authoritatively designated bits in some computer server somewhere. Spend some time with a textbook or Wikipedia and study how the Fed introduces money into the economy through securities sales and purchases which are gauged to achieve the targeted Federal Funds Rate, and how the money multiplier works. There is very little chance of what you are describing, particularly at this point, because banks want to reduce their leverage. Whether dollars are printed or electronically transferred is not really an issue, the difficulty of physically printing dollars has never been an impediment to hyperinflation in the past. So well written, but..... While it as true when as it was when Jesus talked about burying money, money out of circulation has no effect and money held is reserve will not cause inflation, but Obama's spending is going to dilute the circulating money supply quickly. The gov measures inflation with the cost of Asian TV sets, not energy, food, and rent. That keeps the COLA of social security down. Real inflation has doubled the cost of ammo in the last year. As you pointed out, the CPI has been distorted by cheap imported goods. There was a lot of excess money pumped into the monetary system over the last twenty years which inflated prices of housing and other assets. I agree the stimulus money, especially on the fiscal side, has the potential for spurring future inflation. But letting the economy self correct at this point with no measures to ease the transition would not be prudent. |
#3
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End of the dollar?
" wrote:
So well written, but..... While it as true when as it was when Jesus talked about burying money, money out of circulation has no effect and money held is reserve will not cause inflation, but Obama's spending is going to dilute the circulating money supply quickly. The gov measures inflation with the cost of Asian TV sets, not energy, food, and rent. That keeps the COLA of social security down. Real inflation has doubled the cost of ammo in the last year. I wonder if cap and trade on carbon will be in the index? A taxing scheme that will affect the cheapest source of electricity generation (coal) is going to raise COLA unless some cheap trick is applied. Wes -- In her book "Atlas Shrugged", first published in 1957, Ayn Rand warned us about the society we find ourselves in. We were warned. |
#4
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End of the dollar?
"Wes" wrote in message ... " wrote: So well written, but..... While it as true when as it was when Jesus talked about burying money, money out of circulation has no effect and money held is reserve will not cause inflation, but Obama's spending is going to dilute the circulating money supply quickly. The gov measures inflation with the cost of Asian TV sets, not energy, food, and rent. That keeps the COLA of social security down. Real inflation has doubled the cost of ammo in the last year. I wonder if cap and trade on carbon will be in the index? The index is consumer prices. If carbon caps increase consumer prices, it will show up in the CDI. If not, not. A taxing scheme that will affect the cheapest source of electricity generation (coal) is going to raise COLA unless some cheap trick is applied. Wes We'll put your prediction down on the ledger here...g -- Ed Huntress |
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