Deflation vs. Hyperinflation

Discussion in 'Money, Investing & Precious Metals' started by UncleJoe, Jan 31, 2011.

  1. UncleJoe

    UncleJoe Well-Known Member

    This sounds like it could be an interesting debate if you enjoy such things.


    Gonzalo Lira: Deflation vs. Hyperinflation—Stoneleigh vs. Lira

    It’s clear that some type of economic depression is coming to the United States and to much of the rest of the world. In many ways, it has already begun.

    The question is, Where is the United States headed?

    • A 1930s-style deflationary depression?

    • Or a Weimar-style hyperinflationary crisis?

    For the first time ever, two of the most prominent writers on this issue will face one another in a live online debate, to be held on Thursday, February 10, 2011, at 9pm EST.

    Nicole Foss, a.k.a. “Stoneleigh” at The Automatic Earth, ranks among the most prominent of the deflationists. She maintains that the ongoing contraction of jobs and overall income in the US will lead us into a sustained deflationary depression. Consequently—and in direct contradiction to the advice of hyperinflationists such as Lira—Foss strongly recommends Americans stay liquid in US Dollars and avoid going into any debt. As jobs and many businesses disappear, Foss foresees a crash in the money supply, leaving most people without cash or credit, and a minority hoarding the little that remains.

    And as far as me? Well, you who read this know that I’m a hyperinflationista—but a thoughtful one, not some crazed tin-foil hatter. I’ll be drawing on my personal experience from Chile in the early 1970’s, and arguing how the same hyperinflationary crisis will soon take place in the United States, due to the massive oversupply of debased U.S. dollars chasing after a finite supply of tangibles. I’ll be arguing that anyone wanting to survive and prosper would be well-advised to structure their investments and their own personal lives in anticipation of a rapid and stunning hyperinflation.

    This live online debate will be moderated by Jay Carter of Financial Survival Radio.

    Stoneleigh and I will be taking your questions—live. So if you sign up (and I certainly hope that you will), please have a microphone attached to your computer, in order to participate in the live Q&A.

    Remember: Thursday, February 10, at 9pm EST.

    Hope you catch our debate!
  2. *Andi

    *Andi Supporting Member

    You will have to let me know how the debate goes ... (no t.v. here :D)

  3. nj_m715


    Sounds interesting, but:
    COST: $45

    I think I'll have to pass. $45 buys a lot of wheat.
  4. IrritatedWithUS

    IrritatedWithUS Well-Known Member

    $45? :eek: Really? DANG. If you get to be a part of the discussion I would love to know what they have to say
  5. UncleJoe

    UncleJoe Well-Known Member

    WOW. I didn't look that far in to it. I was just going to click on it Thursday night.
    I guess I'll just come here instead. :D
  6. The_Blob

    The_Blob performing monkey

    $45?!!?!?... looks like they found THEIR strategy for riding out the "depression" whichever type it is... :lolsmash:
  7. mosquitomountainman

    mosquitomountainman I invented the internet. :rofl:

    I've been having that debate with a friend. We'll see who is right!
  8. BillM

    BillM BillM

    Hyperinflation vs Depression

    They are both right. Deflation via the free market is taking place right now and if it was allowed to continue unchecked by the FED it would eventually right the economy because when everything gets cheap enough the people who have ,( I love the description Hoarded as opposed to saving) saved there money will began to spend their money and things will began to roll again.

    This is the problem and it's the problem that put us here, the FED.

    Contrary to popular belief the FED is not a branch of the government.

    It is a cartel of privately owned banks. It was created it secrete on Jekyll Island on a private hunting reserve by the seven men who controlled twenty-five percent of the worlds money. Two of them were Europeans

    The purpose of setting up the FED and getting Congress to agree to it was not to protect the Americans who deposited their savings in banks, it was to protect the banker who wanted to have fractional reserve banking based on fiat currency world wide. This allows them to continue loaning money at interest rates that make them wealthy when every one else is going broke.

    When deflation begins, Ben Vernakie will consult with the World Bank and all the national banks in the USA and he will recommend printing as much money as they want in order to give them the ten percent reserve of fiat money they need to be allowed to continue to make loans to the public and each other. They will lower their interest rates to zero if necessary because they can obtain assets. Remember, they will never have to pay it back. The fiat fractional reserve money was created out of nothing.

    It is backed only by " the full faith and Credit of The United States Government".

    China keeps the value of the Yen so low that we will buy their cheap goods .

    They then take our fiat cash and purchase large sums of gold and silver on the private market.

    Morgan bank who has sold US bonds to the Chinese to allow the U S Government to print more money to bail out banks and nationalize U S business, has faced Chinese demands for silver in leu of our fiat currency.

    When the Chinese realized that they would not be able to pay with gold and started converting U S dollars to Silver on the world market Morgan started a bidding war with them for silver artificially holding its price down.
    Morgan is running with their pants around their ankles. When they fall, silver will return to it's historical value at 1/15 of the gold price per ounce.
    That would put silver at around $90.00 per ounce right now.

    All monetary systems in the history of the world that have ever operated on a fiat currency have eventually failed.

    All banks that have ever operated on a fractional reserve rule have failed

    Central banking always fails.

    We have all three.

    Because of the World banking cartel, (The Federal Reserve) my guess is hyperinflation will do us in.

    Buy silver bullion, watch the money, and comedies, especially oil.
    The thing that will collapse the fragile balance is oil going to 150 per barrel.
    When Diesel goes to $5.00 per gallon everything but Walmart will stop rolling.
    Walmart has their own trucks and will pass on the cost to the consumer. They will pay fuel surcharges to their suppliers and pass those charges on also. When they are the only national retailer for Groceries , etc. They will not be able to resist raising prices even higher . This alone will kick in Hyperinflation.
  9. sailaway

    sailaway Well-Known Member

    Go ahead and click on it, then click to the History or Discovery channel and when your a little hungry just click to Man vs Food or Dinners, Dives and Drive Throughs.:D:D:D:eek:

    What ever happens the masses who have little will have even less and the few who have much will have even more. Money is the vehicle to move production across to consumption. I'm wondering if we will have both, ie. Most realestate that the masses would have keeps going down in value, but try buying something that is extremely limited even to the rich, it will inflate in value. (good waterfront property or a farm with some acerage in my county)