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.
Strategies & Market Trends : The Residential Real Estate Crash Index
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: DebtBomb who wrote (166282)11/22/2008 10:50:59 AM
From: PerspectiveRead Replies (3) of 306849
 
I can virtually guarantee you that the government will step up and take FDIC liabilities onto the Federal balance sheet. IOW, they will print brand new dollars to hand out to banks that blow after FDIC is depleted.

Those will be the kind of extraordinary measures that could spawn hyperinflation - but it will still depend upon the rate of credit destruction elsewhere. It's not a rampant expansion of money supply if the shadow credit creation system is taking away credit as quickly as the Feds are adding it.

I think that's something the inflationists may be underestimating. The inflation already happened. It's done. The money ran all over the planet. Commodities exploded. The rest of the world ended up owning all our debt. Whether we see it as a ruinous inflation here now depends largely upon what our creditors decide to do with their dollar holdings. Should they attempt to cash them in, we're crushed. If they all continue to hold 'em, then deflation probably rules the next few years.

`BC
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News