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<p>[QUOTE="Argento, post: 577748, member: 17165"]Inflation will no doubt be experienced but it won't get as bad as the doom & gloomers would have you believe. The prime reason inflation won't go hyper is very simple to grasp.</p><p><br /></p><p>Inflation has the secondary of effect of decreasing the value of debt. In a country like the USA where the populous is largely indebted -- and real wealth has been built atop of that debt -- inflation poses a very real threat to debt interests (i.e. bankers) and since the bankers are running the show (and money) via our Federal Reserve system you can guarantee that they won't allow a flooded dollar market to essentially erase the value of their debt assets through inflation. As soon as there is even a hint that real infation is on the horizon, the Fed will contract the money supply so quick your head will spin.</p><p><br /></p><p>Now, I promised you this would be easy to grasp so, to simplify: if inflation becomes so bad that you earn like $3,000/hr. (i.e. real hyper-inflation scenario) what does that mean for your $1200 mortgage or $600 car payments? To you it means you own them both, free and clear, with damn near zero effort. To the bankers who hold the notes on those items, it means their assets are wiped out. In a country the size of the USA with as much debt as is held by US citizens, we're talking enormous, mind-boggling amounts of money. You'd be a fool to believe the powers that be would ever allow inflation to threaten those assets.</p><p><br /></p><p>So, inflation will come but it won't be too big of a big deal. Maybe just enough to create some good theatrics, but little else. Deflation is a much bigger threat to people who are in debt and is a windfall to bankers who hold the notes.[/QUOTE]</p><p><br /></p>
[QUOTE="Argento, post: 577748, member: 17165"]Inflation will no doubt be experienced but it won't get as bad as the doom & gloomers would have you believe. The prime reason inflation won't go hyper is very simple to grasp. Inflation has the secondary of effect of decreasing the value of debt. In a country like the USA where the populous is largely indebted -- and real wealth has been built atop of that debt -- inflation poses a very real threat to debt interests (i.e. bankers) and since the bankers are running the show (and money) via our Federal Reserve system you can guarantee that they won't allow a flooded dollar market to essentially erase the value of their debt assets through inflation. As soon as there is even a hint that real infation is on the horizon, the Fed will contract the money supply so quick your head will spin. Now, I promised you this would be easy to grasp so, to simplify: if inflation becomes so bad that you earn like $3,000/hr. (i.e. real hyper-inflation scenario) what does that mean for your $1200 mortgage or $600 car payments? To you it means you own them both, free and clear, with damn near zero effort. To the bankers who hold the notes on those items, it means their assets are wiped out. In a country the size of the USA with as much debt as is held by US citizens, we're talking enormous, mind-boggling amounts of money. You'd be a fool to believe the powers that be would ever allow inflation to threaten those assets. So, inflation will come but it won't be too big of a big deal. Maybe just enough to create some good theatrics, but little else. Deflation is a much bigger threat to people who are in debt and is a windfall to bankers who hold the notes.[/QUOTE]
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