| John Burns - 1/30/2016 22:12
I would agree with all that except it is not an option that can be chosen or not chosen. It is something that "happens" because of previous monetary choices and/or other economic forces. It is not a choice.
We'd have to get into free will vs. determinism, I think, to discuss this. I'll just say that the bankers/politicians will most likely do everything in their power to avoid hyperinflation - including serious deflation. We're seeing it right now in so many ways. The last thing they want is to lose power. We're seeing it on a relatively small scale right now in politics.
Would I rule it out completely? Of course not. Is it likely in the relative near term (where we need to make decisions)? Sure doesn't look like it. For hyperinflation to take place - here in the USA - there must be an alternative to the US dollar. I just don't see corn, beans, oil, copper, etc. being that alternative - at least for some time. Of course - doesn't mean it can't happen. Money created, especially by debt issued, is held by relatively few people. What is the limit? No one knows, but it sure seems like we could have a ways to go, as, at least when it comes to government, it is a circular thing. The debt just keeps growing while the money in circulation doesn't change nearly so much. When will the people with money decide they want to own corn rather than bonds? Good question. But there are problems owning corn too. Hyperinflation means there is a choice of where to park wealth.
Gold - I'm sure its day will come. But, as discussed many times on this forum, there are serious problems relying on gold ownership too.
There is no safe haven. |
John, another look at where we have come to
