SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: ild who wrote (259607)9/9/2003 4:04:01 PM
From: ild  Read Replies (1) of 436258
 
Date: Tue Sep 09 2003 14:51
trotsky (Bookmark, 10:09) ID#377387:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
clearly, hyperinflation is the least likely prospect. it would only become likely if the central banks were to alter their modus operandi significantly, and began to monetize the mountain of debt ( including private sector debt ) that is likely to go into default in coming years. for a variety of reasons this is highly unlikely to happen - for one thing, how would they determine what types of debt to monetize ( and thereby cancel ) and what types of debt to leave out? more importantly though, as soon as the markets were to become aware of such a harebrained plan, the imminent collapse of the underlying fiat currency systems would be assured. this would leave the CBs powerless - and they would never do something that might entail their own demise ( as desirable as this would be for the rest of us, leaving aside the hardships that would no doubt be created once the system falls ) .
therefore one must conclude that the coming 'debt reconciliation' will be deflationary in nature - again it appears unlikely that the current mountain of debt can be expanded much further, as it has already reached an all time high relative to GDP that surpasses the previous record posted in 1929 by a huge margin. furthermore, the world is inundated with industrial overcapacities ( one needs only to look at the sorry state of US capacity utilization ) , so no-one has any pricing power. this goes not only for corporations, but for labor as well...everybody's with their backs to the wall.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News