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View Full Version : Is Hyperinflation coming???????


CAVEMAN
11-04-2010, 03:12 PM
Doesn't sound very good!!!!!


http://www.centredaily.com/2010/11/03/2316071/feds-quantitative-easing-to-starve.html

Tyburn
11-04-2010, 05:43 PM
Probably not...but its a risky business and doesnt help true growth...think about it...the more dollars there are, the less the value of a dollar actually is...so then things end up costing stupid ammounts of dollars...but its fine...coz you have stupid amounts of dollars printed.

Mindue...you already have a silly system of one dollar notes!! My Wallet broke in the US on my first tour because of the stupid amount of $1 notes crammed inside!! have you never heard of a COIN! :laugh:

TexasRN
11-04-2010, 08:59 PM
Probably not...but its a risky business and doesnt help true growth...think about it...the more dollars there are, the less the value of a dollar actually is...so then things end up costing stupid ammounts of dollars...but its fine...coz you have stupid amounts of dollars printed.

Mindue...you already have a silly system of one dollar notes!! My Wallet broke in the US on my first tour because of the stupid amount of $1 notes crammed inside!! have you never heard of a COIN! :laugh:

Americans don't like to carry coins. :mellow:


~Amy

Tyburn
11-04-2010, 09:12 PM
Americans don't like to carry coins. :mellow:


~Amy

:laugh: I love you Amy :laugh:

:ashamed:

NateR
11-04-2010, 09:53 PM
but its fine...coz you have stupid amounts of dollars printed.

But that's the root cause behind hyperinflation: a stupid amount of money printed with NOTHING to back it up.

Money has no intrinsic value. In other words, the paper that a dollar bill is printed on is worth only a tiny fraction of one dollar. Money's value is extrinsic, meaning it comes from an outside source that is agreed upon and trusted by everyone.

Our money used to be based on the Gold Standard, meaning that the money itself was backed up by actual gold and silver. So if you had a $1 bill, you could, in theory, take it to a bank and get one dollar's worth of gold in exchange.

However, they got rid of the Gold Standard decades ago and now our money is just based on the good name of the United States of America. Well, that good name can be ruined by: 1. printing too much money; 2. spending too much money; and 3. borrowing too much money, among other things.

Even if we were to try to go back to the Gold Standard, there is only enough gold on the entire planet to back up about $8 billion in cash. We're printing and spending hundreds of billions of dollars! How is that not a recipe for disaster?

Tyburn
11-04-2010, 10:04 PM
But that's the root cause behind hyperinflation: a stupid amount of money printed with NOTHING to back it up.

Money has no intrinsic value. In other words, the paper that a dollar bill is printed on is worth only a tiny fraction of one dollar. Money's value is extrinsic, meaning it comes from an outside source that is agreed upon and trusted by everyone.

Our money used to be based on the Gold Standard, meaning that the money itself was backed up by actual gold and silver. So if you had a $1 bill, you could, in theory, take it to a bank and get one dollar's worth of gold in exchange.

However, they got rid of the Gold Standard decades ago and now our money is just based on the good name of the United States of America. Well, that good name can be ruined by: 1. printing too much money; 2. spending too much money; and 3. borrowing too much money, among other things.

Even if we were to try to go back to the Gold Standard, there is only enough gold on the entire planet to back up about $8 billion in cash. We're printing and spending hundreds of billions of dollars! How is that not a recipe for disaster?

:unsure-1:It is a BIG worry. England decided to do the opposite...and actually cut and save...rather then flood the market.

I dont think it will cause hyperinflation...true hyperinflation looks like 1920s-30s Germany...you wont get like that...BUT I do see the Dollar eventually being lost on the world market.

See the base currency has always been Pound Stirling...whatever in the world you want to change your currency to...the very lowest you can go is to change it to Stirling. Now Dollars is largely a perfered method of working since the 1950s...I could see THAT being lost if your currency becomes any less meaningful....this I reckon might happen when the U.S finally gets round to realizing how close China is to world domination...and then tries to fight its cause to find its drowning in a sea of dollar bills....

I dont know enough to say what might happen...except hyperinflation in the true sense of the word is unlikely

TexasRN
11-04-2010, 11:29 PM
:laugh: I love you Amy :laugh:

:ashamed:



:wink:


~Amy