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Napanee, Ontario |
"And why not keep monetizing? No one will realize it."
Well, I guess it's been working for years hasn't it? Less and less purchasing power relative to capital assets values, food, fuel, living costs every year... It's been like the frog in boiling water analogy. Although there are many triggers in place for a quick asset meltdown and the subsequent final inflationary supernova that will be the response, perhaps they can keep the balls in the air a while longer and keep slowly increasing the heat.
Eventually though, the frog realizes it's too hot and tries to get out. But it's too late, and you have a dead frog. That will be the inflection point - when people look around one day and "realize it" - when a large majority of people realize they are simply working for food and shelter, or less, ..... will they seek justice? It's called a revolution and it's happened all through history. But so has slavery. Wealth consolidates over time. To the point it effectuates slavery, (serfdom). And as it stands now, with every trillion more we throw on the heap, that is the effective future our decedents will inherit from the path we are currently paving for them. Currency that will barely buy them food, water and a shack. Maybe less.
That is a catastrophe.
I personally think it's going to be ushered in on a lot more immediate basis by a triggering event - hence the 'show' i'm referring to. War, trade dispute, commodity shortage or some other factor that will provoke large scale redemption of Bonds and exodus from all fiats in short order..... which will bring on the final tsunami of monetary liquidity from the central bankers in attempt to hold it up, but which of course will effectuate the same result as a default: --- plummeting standard of living though widespread disintegration of currency values to real assets nearly overnight (as opposed to the slower managed decline that's been rendered so far). Or as John likes to Refer to - Wiemar, and Zimbabwe.
That's the same catastrophe as above. Same means, same end, just the speed we get there may differ.
Edited by OldMcdonald 10/31/2014 00:03
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The 4.5 trillion dollar balance sheet. Continued QE
