The Financial Collapse of 2001 Unwinding Message Board

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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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bruiser98

To: philv who wrote (127)	3/16/2017 6:41:37 AM
From: THE ANT	1 Recommendation Read Replies (1) of 13803

The rest of the world can not do this as the dollar is the reserve currency and they have a large percentage of debt in dollars which would get harder to pay off. Some of these countries like Brazil also already have inflation either because their import substitution model leaves them with production constraints or are already printing more than they take in causing inflation.I want the US to print until inflation and stop when we see the whites of inflations eyes as excess capacity should be used up at that point. The elephant in the room is the debt level. This will be massively deflationary when rising rates prick asset bubbles. Current inflation is a head fake and will only cause rates to go up until this causes deflation. I just made big money betting against oil as I maintain the economy is way weaker than it looks and I will continue to wager against strong growth Now for an example.If productivity is 3% we could stop all taxes and ask the government to only spend 3% of GDP a year.They would just write checks from the federal government and say they are legal tender and can not be refused (nobody would refuse them anyways) We would have no inflation. Now lets say the government brings in 7% taxes via non income tax receipts. Now we can spend 10% of GDP at the government level without creating inflation. Now the asset bubbles burst and we have deflation of 5%.without raising taxes we write checks from the federal government equal to 15% of GDP and still no inflation. The entire world is in a debt bubble and assets will crash at some point as Steve Keens points out that if debt stops growing, even if it doesn't fall, all major economies go to 2-5% negative GDP.This happens every 70 years under our economic system and the old rules no longer work. printing money is not an inflationary problem during this period and and is the solution. this goes on for about 10-15 years and debt levels are reset lower and we begin letting the bankers allocate debt again for the next 70 years. If Trump can figure this out we can rebuild our infrastructure and the inner cities. It will likely take a crash in assets to wake people up but Trump is the best hope to print pre crash in my opinion. Again read Steve Keens

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