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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: kris b who wrote (75572)12/14/2006 3:32:42 AM
From: Mike Johnston  Read Replies (1) of 110194
 
Now, can you explain to me point by point how will FED reliquify the households so they can start shopping again, creating your hyperinflation in the process.

As you well know, hyperinflation is as much a psychological as a monetary phenomenon.
It is not a question of when they start shopping again, it is a question of faith in the currency here and on the world markets. They will start shopping for everything in sight as soon as they get their paychecks once they lose faith in the currency after years of seeing prices go up.
Right now this process is delayed because foreign governments are printing their own currency to support the dollar, fanning inflation locally and accumulating tons of dollar reserves. How long can that go on ?

Couple of years ago, i got out of the dollar completely.

1.I trade US dollar denominated instruments only in euro and australian dollar denominated accounts.

2.I switched all my savings out of the dollar ( wish had done it sooner)

3. I bought gold.

Now let me ask you this, what would have happened if suddenly 90%+ of population did exactly what i did ?
Here is your answer.

And another question: when do the masses wise up to the fact that their labor and savings which are denominated in dollars is losing value much faster than what is being reported ?
How many years of 10%+ inflation will it take before people will have enough of it? Or will it take 20% inflation ?
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