>>You can't keep printing almost worthless paper backed by nothing.<<
our money is not backed by nothing. it is backed by debt - interest needs to be paid on the money created.
>>1. It causes inflation.<<
it depends.
>>2. It causes oil to skyrocket.<<
it depends.
>>3. China could pull off the nuclear option on the dollar - hyper-inflationary depression hits.<<
china could cause a depression, but it doesn't have to be hyper-inflationary. we may have high interest rates in a low/no inflationary environment or a deflationary environment.
>>4. It causes even more unemployment as prices rise and spending drops.<<
Our unemployment is primarily due to the destruction of money (aka debt - money is debt). if debt goes down, and it is, money supply is dropping, too. hyper inflation in the back drop of shrinking money supply? good luck with that.
>>5. It causes even more of a spending collapse as prices escalate.<<
imho, we are a long way away from anything like that. it could happen, but printing needs to disassociated from debt first. i don't think the bankers allow that to happen until they've raided our 401ks and iras.
>>They'll print until we collapse, IMO.<<
they'll collapse the system (now that they've dodged the bullet) and then they will print once they buy back assets at 10% of the cost they sold them to the people of america. this process will take a bit, imho.
a good read on the current deflation...
economicedge.blogspot.com
Incomes dropping, jobs disappearing, money supply shrinking (debt shrinking), interest rates increasing, taxes increasing, QE ending, government talking about raiding 401ks and iras...
hint - you don't tell the american people you are going to force their 401ks and iras into worthless treasuries if you are going to print backed by nothing (instead of debt) anytime soon. if you were going to print with no associated debt, you'd just start doing it.
america is broke-*ss and the bankers control the money supply. they were made whole on their losses, society reached debt saturation (money supply growth saturation) and now it is time to put the clamps on people until they puke up their assets to the bankster for pennies on the dollar.
that's deflation in total.
at some point, serious inflation will hit, but we aren't likely near it now.
ps - don't trust the banks, thy may loot bank accounts as they loot 401ks and iras... keep plenty of assets out of banks (gold, silver, cash, whatever - get most out of banks before the herd figures it out). |
