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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: THE ANT who wrote (133352)4/26/2017 11:22:12 AM
From: Maurice Winn1 Recommendation

Recommended By
bart13

  Read Replies (2) | Respond to of 219450
 
<<Do you Believe that we will not have true deflation if assets tank like they did in 2009 ? Like astrophysics we find it hard to believe in things that happen once in a billion years>>

Definitions matter. I think deflation means the price as measured in US$ goes down. If US$ are diluted as they are and especially when the frighteners go on, then the measuring stick shrinks and we get the Zimbabwe effect = prices rise. A loaf of bread costs $1 billion. Which does not mean production continues and people don't starve. Just that the price of things rises, as measured by the shrunken measuring stick.

If Virtuous Victorian Values are dumped, then things go badly, even as prices rise. See Weimar hyperinflation, Zimbabwe, the trends in fiat money value and tobago jack's favourite, the French money destruction.

Fiddling with fiat money is very popular and will continue as assuredly as gravity continues. Newtonian financial billiard ball theory is how gold as money works, but Einsteinian financial relativity theory is how fiat money works.

Mqurice