05-20-2016, 02:28 AM
(05-19-2016, 04:45 PM)Odin Wrote:(05-19-2016, 12:01 PM)Galen Wrote: I am certain that it will, only the precise timing is uncertain. The only thing the Fed knows how to do is print money.
But yet the hyperinflation you ideologues claim is just about to happen mysteriously never materializes.
So far the Fed has at every crisis tried to resolve it by printing money which sets the next boom-bust cycle into motion. This will be what set a gigantic price inflation in motion as the dollar loses reserve currency status around the world. It is the ability to export inflation to the rest of the world that has prevented that from happening.
In the unlikely event that the Fed and Federal government choose not to inflate then in that case the debt is can not be paid and then it will become obvious to Treasury holders that the debt is can not be payed. Treasury prices will fall and cause interest rates to rise. In this scenario deflation is likely.
Things continuing has they have for the last sixty years is increasingly unlikely as Saudi Arabia and China continue to sell Treasuries. I don't think that the dollar will remain a safe haven in this fourth turning with the US being the biggest debtor the world has ever seen.
Democracy is the theory that the common people know what they want, and deserve to get it good and hard. -- H.L. Mencken
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises