[Epaphras]

This article sparked this discussion in my own mind, and I thought I'd put it out there for us to discuss.

The author basically contends that we are currently between the equivalent of Black Thursday (October 1929 = September 2008) and the collapse of the Bank of England in 1931 which initiated worldwide hyperinflation. The cause of the coming hyperinflation:

"With bailouts increasing and all forms of commodity production declining, we have the classic situation of far too much money chasing too few goods."

He also contends there is a worldwide "dollar-panic" occurring:

"Every country that holds large sums of dollars or US Treasury bonds is nervously eyeing every other such country to see if they show signs of bolting for the exit."

What do you think? Is inflation (or rather, 'stagflation') on the near horizon? What can be done to stave it off?

Did the New Deal prevent a worse Great Depression, or was it only the increased manufacturing production as a result of WWII that got us out of it? If the New Deal was successful, is Stimulus II the 2009 equivalent? Or is Stimulus Mach III needed? If there is to be a worldwide depression, is WWIII on the horizon? Who would be the likely players in such a scenario?

[nolidad]

Originally Posted by Epaphras

This article sparked this discussion in my own mind, and I thought I'd put it out there for us to discuss.

The author basically contends that we are currently between the equivalent of Black Thursday (October 1929 = September 2008) and the collapse of the Bank of England in 1931 which initiated worldwide hyperinflation. The cause of the coming hyperinflation:
He also contends there is a worldwide "dollar-panic" occurring:
What do you think? Is inflation (or rather, 'stagflation') on the near horizon? What can be done to stave it off?

Did the New Deal prevent a worse Great Depression, or was it only the increased manufacturing production as a result of WWII that got us out of it? If the New Deal was successful, is Stimulus II the 2009 equivalent? Or is Stimulus Mach III needed? If there is to be a worldwide depression, is WWIII on the horizon? Who would be the likely players in such a scenario?

Well FDR's interevention deepened the depression ands lengthened it. It was WW2 that pulled the Us and the world out of the depression. Though it was kensian deficit spending- it was spent on manufacturing which in turn spuured all other sectors of the economy.

I don't thiink we will see stagflation like the late 70's, but serious inflation. Once the economy recovers because of the massive deficit spending and the increased debt- we will roll into serious inflation. I don'yt bel;eive like modern Zimbabwe but 18-22% at least. Which in turn will cause the economy to drop like a stone again.

Good News!!!!!!!!!

[nolidad]

U.S. National Debt Clock : Real Time

With numbers like these and Obama and the CBO we aregoing to add at least another $8 trillion more to the national debt-- maybe I need to rethink the US imitating teh Wiemar republic.