Inflating Americas Money

[Twodogs]

111111

[noonereal]

Originally Posted by Twodogs

I heard some interesting numbers late last night and thought I'd share them with you guys. In the bad recession of the 70s, the government printed money equaling 13% of what was already printed. Supposedly interest rate increases follow money printing by 1 to 2 years, and they did this time resulting in the 20% rates we all remember from the 70s. Fast forward to this recession, and the government has (believe it or not) printed monies to equal 120% of what was already in circulation. They eventually have to bring that money back in and destroy it, and that's where the rate hikes come into play. So, if rates hit 20% due to printing 13%, how high will they go this time (after 120% printing)? As for now, most of that money is just "sitting" in banks, making them solvent. The problem starts when they decide to loan that money and it hits the streets (inflation). Then, if interest rates do climb to say 40% or so, people quit borrowing. That means they don't buy cars, houses, or run businesses very well. At this time, we can expect the dreaded Hyper-Inflation.

What's the difference? Banks are not loaning now.
If people are not borrowing, is not that really the same difference?
(nice avatar, very alienating)

[Charles]

Our money is based on debt. More debt you got, more money you got. And the more inflation you got.

IMHO, we're playing no limit poker with a bunch of sharpies who have way more money than we have. They can buy our hand at any time.

But It's the only game in town.

Chas

[Charles]

Originally Posted by Twodogs

Well, crap, nobody liked Bush, or Palin either. I'll do some looking around just for you my friend. Heaven forbid I would alienate myself from this group of nuts.

How about Captain Kangaroo? Everybody loves him...'cept for maybe Noon!!!

Chas

[Sandy G]

I'd like to get a pic of John Moses Browning, Maj. Uziel Gal, John Cantius Garand or Dieudonne J. Saive for mine...Maybe even Mikhail Kalashnikov or Eugene Stoner ! (grin)

[hillbilly]

Originally Posted by Twodogs

My prediction (don't forget you saw it here first);

Gold will be 5k an ounce at some point during this Presidency.

I know a feller that will be doing well for himself up north. He predicted this when I was still new at ak and first started talking to him.He bought up gobs of it for cheap while the gettin' was good. Folks must have more money up north as folks here don't scrap their gold for peanuts, alot of 'em have to wear their first pieces of hard earned gold til they are placed 6 foot under the surface of the earth. My mother inlaw has been wearing her weding band for 67 years, she had been married to my father inlaw for 62 years the day he died, and is still wearing it. Mine must be real soft gold as it's about worn flat all around in just 18 years. My wifes broke over the summer, wore thin til it broke into on the bottom of her finger.

[noonereal]

Originally Posted by Twodogs

Well, crap, nobody liked Bush, or Palin either. I'll do some looking around just for you my friend. Heaven forbid I would alienate myself from this group of nuts.

I had no problem with the others.

[BlueStreak]

Originally Posted by Twodogs

I heard some interesting numbers late last night and thought I'd share them with you guys. In the bad recession of the 70s, the government printed money equaling 13% of what was already printed. Supposedly interest rate increases follow money printing by 1 to 2 years, and they did this time resulting in the 20% rates we all remember from the 70s. Fast forward to this recession, and the government has (believe it or not) printed monies to equal 120% of what was already in circulation. They eventually have to bring that money back in and destroy it, and that's where the rate hikes come into play. So, if rates hit 20% due to printing 13%, how high will they go this time (after 120% printing)? As for now, most of that money is just "sitting" in banks, making them solvent. The problem starts when they decide to loan that money and it hits the streets (inflation). Then, if interest rates do climb to say 40% or so, people quit borrowing. That means they don't buy cars, houses, or run businesses very well. At this time, we can expect the dreaded Hyper-Inflation.

Just one simple question, Twodogs, because I really don't understand;

Why?

Dave

[Charles]

Originally Posted by BlueStreak

Just one simple question, Twodogs, because I really don't understand;

Why?

Dave

No offense TD, but I've looked at this thread a time or two and I have problems following you. I can appreciate hyper inflation, but the Fed doesn't want to bring the money home and eliminate it.

This is the kind of shit that makes your head hurt, and I'm finally getting tuned up!!!!

I'll just try to put this in a nutshell. The American public is asshole deep in debt, and the American government is even worse. But the international bankers think that that's pretty cool...so long as they keep getting their juice. And they're willing to refinance. For a price.

In closing, what my mentor told me. "When a banker smiles at you, it's like a cobra getting ready to strike."

Chas

[merrylander]

So true here Chas, one of the reasons why I never can understand why so many people are against regulating them. So many of our financial rules and laws discriminate against the average guy you would have thought there would have been torches and pitchforks ages ago.