Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: bart13 who wrote (75859)	12/17/2006 11:20:41 AM
From: jimmg	Read Replies (2) \| Respond to of 110194

<<bottom line, study any hyperinflations of the past and you'll find that the money generally does not make it into the pockets of the households.>>> That's not true. wages for everyone skyrockets in hyperinflations. Kris is right. For hyperinflation to occur, there has to be some mechanism for getting money into the hands of the masses. Weimar Germany used printing presses (literally) and money velocity skyrocketed.

To: bart13 who wrote (75859)	12/18/2006 6:58:39 AM
From: Mike Johnston	Read Replies (3) \| Respond to of 110194

"Several bloggers on this thread are making statements about THEM printing, flooding, helicopter drops, etc. causing hyperinflation. I am just a simple schmuck who would like to learn how all this liquidity will find its way into the pockets of the households" Here is the answer, one more time. It will not find its way into at least 50-60% of households, those household's purchasing power will drop 50,60,70 or even 90% in hyperinflation. For 30-40% of the public some liquidity will find the way, through negative interest rates, speculative or investment gains, working in the specific industry and having right skills or trickle down effect, they will hold their own. For the top 5-10%, well, if $50 million dollar Christmas bonus, $100 million mid level executive pay and option package, $60 million dollar gain on the sale of real estate or a small business or a $500 million dollar hedge fund paycheck is not liquidity then i don't know what is.