Are we in a deflationary collapse right now?

[Jewboo]

Who wins: people with net positive worth in cash and hard assets, assuming the cash isn't seized (bank holiday) or devalued/cancelled (currency collapse). In short, the frugal, hardworking, live-within-their-means productive middle class and a few old money goldbugs/landowners are the winners in a deflationary collapse.

Worthwhile watching this very recent interview with "Ferfal" who lived through the Argentine collapse. Relevant to this thread is to notice that he (middle-class) explains that he finally fled with his family to Ireland because the lower-class soon became to "hate" the middle-class and criminally victimizes them with a smug sense of social revenge. "Hate". His word for it.

[mick silver]

reading this makes me want to drive to a big city an buy more food

[gunDriller]

i would say that the US is in a collapse.

it will vary between inflation & deflation.

i would date the start of the collapse as 9-11, or else tie it to the start of the unwinding of the credit crisis, which became impossible to hide on about September 18, 2008.

[Neuro]

The Weimar Republic had a period between 1920-1921, where they pumped in increasing amount of liquidity in the market, but still the net result was deflation, because of risk aversion the banks didn't want to stimulate the economy by lending the liquidity to mere mortals. I think we are in the equivalent of 1921 right now... We live in interesting times, and surely 2014-16 will be hyper interesting...

[Hitch]

The Weimar Republic had a period between 1920-1921, where they pumped in increasing amount of liquidity in the market, but still the net result was deflation, because of risk aversion the banks didn't want to stimulate the economy by lending the liquidity to mere mortals. I think we are in the equivalent of 1921 right now... We live in interesting times, and surely 2014-16 will be hyper interesting...

All the banks are sitting on fat reserves right now. I wish I could find a better chart of this...

Attachment 4719

[mamboni]

All the banks are sitting on fat reserves right now. I wish I could find a better chart of this...

Attachment 4719

Reserves are just a fictitious representation of wealth, numbers on a computer screen, until they are spent on tangibles. Think on that while you fondle a gold oin.

[gunDriller]

Reserves are just a fictitious representation of wealth,

& managed by the most dishonest people on Earth.

then comes Con Game to make us think they're valuable.


OOOOH, Federal Reserve ... WOW ... oh, i'm sold, man.

[Libertarian_Guard]

http://i50.tinypic.com/ezvc5.jpg

[Libertarian_Guard]

http://i48.tinypic.com/24desrp.png

At the peak in March 2008, every new dollar of reserves resulted in $177 in credit money. This is probably what the Fed assumed would happen when it engaged in QE1—that every new dollar of reserves would enjoy the same kind of expansion multiplier from reserves to credit money. But base money is no longer being expanded into M2 at the same rate. After QE1 and QE2, every new dollar of reserves resulted in only $5.48 in credit money. This multiplier had collapsed to about 3 percent of what it was at its peak.


https://www.aier.org/article/2510-pushing-string

[Spectrism]

Two bad sides to the QE nonsense: the money available through the banks could not be borrowed into the economy because there was no foundational manufacturing base to support the consumer purchasing power; and the money given directly to the friends of Obama were not productive investments.

The economy is like a jet ariplane sitting on a runway with no fuel in the tanks. QE is like two super trucks pulling the jet at nearly takeoff speeds down that runway. 2013 is the end of the runway and the jet has been gliding in a pretend flight while the trucks were pulling. The crew of the airplane are the fed and banksters. They see the dilemma of the plane having no more energy coming in since the trucks stopped and the fuel tanks are empty. They are now walking down the aisle collecting up all the passengers' money to make a fire in the back of the plane. Yeah, sure, that will help.