The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: maceng2 who wrote (50475)	3/20/2013 12:15:15 PM
From: ggersh	of 71475

i'll tell you all about it on my next visit! -g- zerohedge.com Guest Post: How I Became A Trillionaire (And Some Thoughts On Inflation)Submitted by Tyler Durden on 03/20/2013 - 12:06 These photos illustrate the fundamentally arbitrary nature of fiat (paper) money. Why do we prefer the $100 greenback over the $100 trillion note issued by the Reserve Bank of Zimbabwe? The purchasing power of the Benjamin far exceeds the purchasing power of the $100 trillion bill. But the Benjamin is not immune to inflation; the dollar has lost about 95% of its 1900 purchasing power. If 95% of households are experiencing a loss of purchasing power and most of the new money and credit are flowing to the top 5%, you get asset bubbles, not demand-driven inflation. When 95% of the households are poorer in terms of purchasing power and financial wealth, where can demand-driven inflation arise in a global economy of massive manufacturing and labor over-capacity? The rise in costs within industries controlled by cartels (healthcare, higher education, defense, etc.) may look like demand-driven inflation, but are actually transfers of wealth and purchasing power from households to the government-protected cartels.

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