Systemic QE and PM prices.. good thing?

The more I think about it, the more I like continued QE and loose money. For that matter, a bit of hyperinflation may not be all that bad either. Would make paying off all your debts, like mortgage's, student loans, etc... pretty easy when your paycheck becomes 3 million each week !! BRING it on, and hurry !!!:devil:

 

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Three thoughts...

First, you can overthink these things. Gold and silver have been in a bull market for some time. People spend a lot of energy trying to come up with reasons. It's a good bet nearly all of them are wrong. PM prices will continue to rise until something happens to END the bull market. That hasn't happened yet.

Second, keep in mind that under hyperinflation, you may not be able to pay your debts because (1) the courts may change the rules and inflation adjust the debts, and (2) normal busines will drop considerably, so whether you are self employed or work for a company, your purchasing power will very likely be lower than it is now.

Third, in a hyperinflationary economy, people will be desparate and in the event you are better off than the majority, many of them will be willing to risk their lives to take what you have since they won't have anything to lose. I know many people here consider themselves heavily armed tough guys, but how long will you last in the daily shootout for survival?

So hyperinflation isn't something to root for.

 

I think the only country that has people that are willing to "work" together during chaos is Japan. What makes this country great with its diversity is also its downfall if there's chaos since not everyone follows the same principals that the people of Japan does.

I sometimes think about all the people that I know who I wouldn't be able to help if things went south. Heck, I would be able to barely help myself.....so I do what I can with PM's but I do not long for societal breakdown....

 

If you get true hyperinflation, and I don't disagree that it can happen, there isn't time for your salary to rise with the inflation. Will your boss give you a raise each day? What happens is the currency can no longer pay for the most basic of commodities and people are left without. In a modern society such as ours, the stores will go empty because fuel can't be afforded, there is little food, and other provisions disappear. The economy quickly collapses unless the gubment steps in with a set of new economic rules to fix it. This can be anything and should scare the **** out of people.

An example just before this central bank and currency collapsed in 2009. Of course anyone's wealth denominated in this currency went up in smoke with it.

 

It's such a laugher isn't it? I mean, $1 trillion is bad enough, to even SEE a $1 trillion dollar bill is comical at best. But the fact that it's "One HUNDRED Trillion" dollar bill!!!

What does that equal to USD anyways?

 

$0 now. The government closed their central bank, suspended the currency, and said "too bad". Zimbabwe has no currency now. There is however a small numismatic value of the note that I've seen selling at coin shows for a few dollars.

 

Oh wow I had no idea! I thought they were still using those Z dollars. I had seen a receipt awhile back showing someone getting lunch and it was like 500 trillion dollar bill they had to pay for, something silly like that.....

I think I would pay a couple bucks for one of these and frame it, who cares what it's worth, it "was" real and something to ponder....


So they must be on a barter system then?

 

Who cares ! I want one denominated is USD asap...
1 - no more mortgage !!
2 - no more student loan !!
... all current depts essentially erased !

Giddy up Bernanke !

 

What happened to the folks over there that still had open contracts sealed under pre-inflationary times, or at least when their dollar was in play ?

 

I would have to assume if the gov't could "At will" suspend a currency, would that not technically void EVERY single contract in existence that deals with their Z dollars? Seems like a loophole to me.....

 

I don't know as I am not familiar with their laws, but it's an interesting question. Here in the USA, a contract must always have "consideration" i.e. payment. Usually penalties are also stated. Most of the time this will be expressed in dollars so if the dollars no longer existed, I don't know how there could be any enforcement.

 

How about this for the good side of hyperinflaton:
In February 2009 Zimbabwe was the only country in the world without debt. Nobody owed anyone anything. Following the abandonment of the Zimbabwe Dollar as the local currency all local debt was wiped out and the country started with a clean slate.



....Super market shelves, bare in January, are now bursting with products...

**** sounds like a mighty fine plan to me !!! ****
a BIT of a hard pill to swallow, but I'll eat musturd and crackers for a year to get the same...




MORE QE IS GOOD !!! MORE OF MORE IS BETTER !!!

 

That's also a good point regarding wages not catching up to inflation fast enough. When the USD becomes a hot potato, it is true, your water bottle may cost $10 more in the afternoon then when you bough it in the morning. But you definitely are not getting a $10 raise at the end of the day.

Businesses that rely on monthly payments for services would be the first to completely get wiped out I would think.....at the end of the day it is all just moot though.....

 

It's not good if you were the one owed the money.

 

Are you kidding ? You think they won't get bailed out.. lol. Just print them a few Trillion dollar bills and whoosh... all is square.

 

Well imo you should save your water bottle for the month, then sell it,,, and pay off the note on your car/s !

 

I will, as long as I have a large stockpile so I don't go thirsty.....water....whiskey....what's the difference!

 

So let's shoot for 10-20x inflation rate, not hyperinflation.

* eliminate all debts faster
* enables workers to accumulate wealth faster
* restarts consumer buying faster as depts are cleared
* and non of the "scary" stuff you say will happen will happen.

I've heard you defend QE before.... I'm just saying that we should increase it even further. If QE was good, more QE must be better. And inflating our national and personnal debts away is super groovy for everyone with debt !