Creating Inflation – or “Why the US government will continue Deficit Spending”
Filed Under (Loans) by admin on 09-09-2010
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www.berninger.de The US Government has to move defizit spending, or otherwise it module drive “Hyperdeflation”. The procreation of Inflation staleness be the neutral of the polity in visit to turn the rank obstruction of the economy.
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The only way to stop deficit spending is to take away Congress’s power to borrow money on the credit of the United States, (the people), by abolishing Clause 2, Section 8, of the US Constitution. It is because of this power of Congress that we have the corruption, debt burdens, and taxes today.
I find that the book Atlas Shrugged makes a good case of why what is going to happen is going to happen. There are also answers for what to do.
If inflation and printing money were the answer, then Mexico and Argentina would be the financial titans of the world.
There is no way out, you gotta have a STRONG currency that attracts investment on the macro level and brings home the goods on the family level. Only deflation strengthtens money. It doesn’t matter how many businesses will go bankrupt – some will survive. Its called capitalism. No country ever made a career with a week currency – financially or otherwise.
I think the real reason for the government ruining the dollar is because China is sitting on over 1.2 trillion dollars cash, and the only way we can deal a blow to China if we destroy “their” core currency – which, unfortunately, is also our currency. Thats why the Chinese are so mad at America – they are between a rock and a hard place – either watch America destroying the dollar, or do it yourself by trying to dump it.
I completely don’t agree with that deflation is bad – when money is scarce, it becomes very strong, because businesses are vying for your cash, and they lower prices (hence the deflation).
And not just that, but foreign investors are flocking to invest in the strong currency.
Remember that back in early 90-s, when we had deflation, the dollar was king. Even in 2001, 78 US cents traded for 1 Euro (!) as a result of deflation strengthening the dollar for 10 years straight.
/watch?v=5r2-5uOlZ1U
In conclusion to my commenting, that is just as bad for the U.S. Government to keep spending. Peter Schiff warn us about this, as he is running for Senate 2010 elections (from his inflation perspective):
Nice explaination, jberni1. However, and in analogy, if I continue to keep spending with my debit card that is tied with my checking account (like buying a $21 Million painting, $1000 stereo system, and only having $0 in the account to start with), I put myself into bankruptcy, up to the point also of being on trial and go to jail for what I did.
Overall, the more you tried to spend, the more you will put your self into insolvency. The government is litterally doing of my personal analogy.
I never heard that before. That they want inflation to ‘make’ your money lose valve just so you need to work to create cash flow. Good point.
Great vid mate. I love cofee.
Thanks for the info…..very interesting…..i’ll be holding on to my Gold and Silver as this mess plays out worldwide.
Merry Xmas from Australia.
Most of the gold is in private hands in India. The country has accumulated gold throughout history.
2 times in history it was accumulated and twice it was robbed. Once by muslim invaders who robbed all the gold and killed people. And once by the British who did the same.
This is the 3rd time that India finds itself with a lot of gold in private hands. Central banks around the world are wondering how to get people to trade their gold for worthless paper like gold ETF, currency..etc.
I read somewhere that the all the people in the world own more Gold privately that all the central banks put together.
Can anyone verify this?
It’s possible. Sounded to me like he was saying the deficit spending was necessary & saving our economy.
I see the point he is making on trying to avoid deflation.
I think you may be reading too much into this single video. I don’t think he was saying that inflation or deflation is bad or good. He’s just explaining what he believes will happen, regardless of what he believes is the best policy.
thirdcoastguy: LOL…your great! But actually, I think we would have to inflate Bernake’s moral compass. No use in making him smarter if he will only use those brain cells to figure new ways to destroy us & enrich himself & his cronies.
Sepero1: I doubt he can. Inflation causes business not to hire. His point was because of rising prices people will take any wage offered & not sit around waiting for a better paying job because they are desperate.
But if business expenses are up & the gov continues to make it more & more expensive to have employees via taxes & regulations, there won’t be any hiring no matter at what pay grade.
But wouldn’t hyper-inflation be every bit as bad or worse than hyper-deflation? Just look at Zimbabwe, Germany & Brazil ending up with worthless currency.
Are there any examples of countries whose entire economies were completely destroyed with hyper-deflation?
Sorry, but I just do not trust that the Federal government manipulating the economy is going to make things better. Are we supposed to believe that the highest deficits in the history of mankind are going to save us?
There are various types of inflation. Inflation can simply mean an increase in the money supply, which means more $ is available for lending, buying and labor.
Price inflation of course is when the cost of goods goes up. It always (?) follows the inflation I describe above because with more money chasing the same amount of goods, the higher the price becomes for those goods!
The Federal Govt in the USA is going to collapse before they idiots could ever get their shit together … I think the Russian Professor who predicted the collapse and second civil war in America is more plausable.
Most Americans are tired of the democraps and rapeublicans who have been screwing us.
The govt will continue to spend because the people taking the free money would riot tomorrow if the free money quit coming to them.
In this video, you state that inflation creates jobs. Could you tell me me, or link me to information as to why this is so? The only reason I can currently think of, is because it makes the dollar worth less, therefore lowering the true price/cost of minimum wage employees.
their wealth run out of real wealth to yield. As this point, they are unable to answer the new emitted wealth, no matter their “good” will. The ponzi scheme is over.
The Ponzi scheme cant go forever.
Currently, the US and Europe go deeper and deeper in debt, use the money collected through debt to buy real wealth (mostly goods and industrial oriented resources) and repay the interests on debt with paper money.
So far so good.
Two limits: countries yielding their real wealth against money acquired through debt reject the deal. Unlikely as the US has peepered the world with military bases.
The other limit is the compulsory one: countries yielding
Id love hyper deflation, cheap houses! bring them on
Quick, someone go deflate Obama’s ego and inflate Bernake’s brain cell count. Don’t worry about Geithner, he’s hiding in the empty vaults at the U.S. Treasury.