3 ways the dollar collapses

[Large Sarge]

http://www.youtube.com/watch?v=D91TGAyrmz8&feature=player_embedded

[undgrd]

http://www.youtube.com/watch?v=D91TGAyrmz8&feature=player_embedded


http://www.youtube.com/watch?v=D91TGAyrmz8&feature=player_embedded

[Neuro]

Yes a good video, he does a good job explaining the underlying mechanisms for a coming hyperinflation, and I do agree that domestic consumers will not be the driver, further loss in the status of USD as reserve currency is likely to take a long time, though it is chugging along as we speak, the reason being that all the other alternative currencies are rather weak in themselves, the notable exception may be the RMB, but it is not fully convertible, and china would lose a lot on the rapid decline of the dollar, because they have so much of them. However a crisis could definitely be a trigger that speeds up this process significantly. And he points to financial crime as a potential trigger. I think countries starting to ask for their deposited gold back, is a most likely trigger now. Thousands of tons of stolen gold is going to destroy the confidence, it is huge. But it is impossible to say when it will blow up. Germany has at this point only asked for 150 tons back, over a three year period, that is not going to shake confidence. In other countries they may just murder the leaders that ask for it, so it can take years for this to pan out as well, but it could happen tomorrow, there is certainly more talk about it, a growing consciousness, when it reaches a critical mass things will happen quickly

[Carl]

Neuro, I don't get where you arrive at the notion that he's doing a good job explaining the underlying mechanisms for a coming hyperinflation.

I've listened to it twice and I come away with notion that he does an excelllant job discounting the notion of hyperinflation.

[Neuro]

Neuro, I don't get where you arrive at the notion that he's doing a good job explaining the underlying mechanisms for a coming hyperinflation.

I've listened to it twice and I come away with notion that he does an excelllant job discounting the notion of hyperinflation.
So you don't agree with the 4 possible underlying mechanisms of a hyperinflation, that he outlines? I think you missed his point he just says that the environment for hyperinflation isn't there for it to start NOW, but that it is inevitable. Listen to it one more time.

[Carl]

So you don't agree with the 4 possible underlying mechanisms of a hyperinflation, that he outlines? I think you missed his point he just says that the environment for hyperinflation isn't there for it to start NOW, but that it is inevitable. Listen to it one more time.
He outlined 4 possible underlying mechanisms of a dollar collapse, none of which imply hyperinflation.

[Neuro]

He outlined 4 possible underlying mechanisms of a dollar collapse, none of which imply hyperinflation.
Really? what do you think a collapse in the value of the dollar should be called then?

[Golden]

Really? what do you think a collapse in the value of the dollar should be called then?

"The Federal Reserve System" haha

Joking aside the collapse of the dollar should be called "dollar de-leveraging."

[Carl]

Really? what do you think a collapse in the value of the dollar should be called then?
Hyper-Deflation.

[mamboni]

tag................

[Horn]

tag................

Your it

[Carl]

Yep, your money's no good, but your promise to pay in that money is acceptable...

Credit is measured in FRNs, if the FRNs are worth-less then how much value will a promise to pay FRNs (credit) have?

Google "U.S., money in circulation" and read the FRB report, $1.14 Trillion is hardly hyperinflationary levels.

Here is something else from a Fed site:

"Credit currency has no legal standing as money but all debts incurred through its use are legally binding."

That means, the Fed has no legal obligation to redeem credit with FRNs.

[woodman]

He did clearly state that he believes hyper-inflation is on the timeline, just further out than some, like Williams, believe it to be.

[Neuro]

Hyper-Deflation.
Funny, I didn't hear them say hyper-deflation a single time, but they did say hyper-inflation many times...

So collapse in the value of the dollar is now called hyper deflation, that must mean a huge sharp increase in the value of the dollar is called hyper-inflation? Damn, I always thought it was the opposite... Well thank you for straightening that out for me uncle Carl!

[singular_me]

this site is pro-hyperinflation but I disagree and disagree with the deflation scenario also... I just see a plain full crash/implosion and a new world currency a few days/weeks later.

[Carl]

this site is pro-hyperinflation but I disagree and disagree with the deflation scenario also... I just see a plain full crash/implosion and a new world currency a few days/weeks later. That would be hyper-credit-deflation.

[Carl]

Funny, I didn't hear them say hyper-deflation a single time, but they did say hyper-inflation many times...

So collapse in the value of the dollar is now called hyper deflation, that must mean a huge sharp increase in the value of the dollar is called hyper-inflation? Damn, I always thought it was the opposite... Well thank you for straightening that out for me uncle Carl! I don't know why people insist upon attaching antiquated notions to modern currency mechanics.

When Iceland's banks failed, did everyone who had accounts in those banks get more credit? How about when the banks failed in Ireland, Spain, Greece or Italy?

When the floor drops out from underneath the value of the dollar, why does anyone believe that a promise to pay dollars will retain value as a medium of exchange and that a flood of promises to pay will envelope us in hyperinflation? Who, do you believe, will be stupid enough to accept a promise to pay dollars in the future when the dollars promised have little to no value in trade the day the promise to pay was offered as payment?

Hera speaks to the point that financial crimes will trigger financial collapse, what is financial collapse? It is the collapse of credit as a medium of exchange and a demand for payment in cash. It is a Run On The Banks. Do you believe the banks are holding $40+ trillion in actual cash?

If there is a hyperinflation event involving U.S. credit currency it will be over quicker than it started and it will happen way over the general population's economic heads.

[woodman]

I don't know why people insist upon attaching antiquated notions to modern currency mechanics.

When Iceland's banks failed, did everyone who had accounts in those banks get more credit? How about when the banks failed in Ireland, Spain, Greece or Italy?

When the floor drops out from underneath the value of the dollar, why does anyone believe that a promise to pay dollars will retain value as a medium of exchange and that a flood of promises to pay will envelope us in hyperinflation? Who, do you believe, will be stupid enough to accept a promise to pay dollars in the future when the dollars promised have little to no value in trade the day the promise to pay was offered as payment?

Hera speaks to the point that financial crimes will trigger financial collapse, what is financial collapse? It is the collapse of credit as a medium of exchange and a demand for payment in cash. It is a Run On The Banks. Do you believe the banks are holding $40+ trillion in actual cash?

If there is a hyperinflation event involving U.S. credit currency it will be over quicker than it started and it will happen way over the general population's economic heads.


One thing for certain, we will see. I don't pretend to know how this will all sort out. I believe they can keep their little game going on for quite awhile......until they can't. I do seriously doubt a deflationary period of any length; to believe such, one must suspend alot of rational thinking. This country is in no way comparable to the country it was during the great depression and people will not function in the same manner when things get dire. There is no political will to lead a Spartan economy, nor to take the candy from the kids (welfare from the masses) and face the fall-out, regardless of the police state machinery that has been set up.

They can certainly juggle things for a long time though and probably have done simulations of all various scenarios. They will intend to keep their grip. No criminal enterprise ever just gives up and goes home. Too many princes waiting in the wings for the king to die so they can take their turn at the helm. They will play this thing for all it is worth. Till the soil runs red with blood and the seas are full of battle debris, they will whip the respective populace of each farm into a frenzy against those who are supposedly the authors of their problems.

We have a serious parasitic infection and we must deal with it sooner rather than later if we want to come out the other side resembling anything like humans.

Personally I think it will turn into a serious inflation but not Weimar or Zim type, that will be dealt with by replacement of the dollar. It will entail the worst case of theft that this world has ever seen.