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Thread: Hyperinflation

  1. #21
    Guerilla Urbanist Brendan's Avatar
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    Quote Originally Posted by Lateralus View Post
    Elaborate.
    Hyperinflation took place after World War I. The economy just sucked after World War II.
    There is no such thing as separation from God.

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    Senior Member Lateralus's Avatar
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    Quote Originally Posted by Brendan View Post
    Hyperinflation took place after World War I. The economy just sucked after World War II.
    So that's why they were using cigarettes as currency after WWII?
    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  3. #23
    Order Now! pure_mercury's Avatar
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    Quote Originally Posted by Lateralus View Post
    So that's why they were using cigarettes as currency after WWII?
    I recently read about some towns in Colombia (IIRC) in which cocaine is being used as very cheap currency. Like, 1 gram of cocaine = 1 soft drink. *note to self: buy case of Sprite on the way home from work*
    Who wants to try a bottle of merc's "Extroversion Olive Oil?"

  4. #24
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    If what we have now is similar to the Depression, then you have to consider most of what they faced in the depression was deflation, not inflation. That translated to low wages and major job losses. Plus the tariffs imposed by Hoover crippling international trade, the weather knocking crop production, and Roosevelt's incoherent and socialistic policies worsened the whole ordeal. What we should have now is a deflation of most products if there is no supply problem. We are definitely seeing a deflation in commodities, oil especially. The fall of gold and other metals could be attributed to sell offs by large groups that need to pay loans immediately, and must sell their gold assets to do it. I've also heard of hedge funds as being a likely cause for the drop in gold prices, when supply is so limited (in retail/smaller denomination). Oil is likely going down because of the worldwide economic situation, and everyones' currency dropping. The demand for oil is going down, and thus the prices must drop. If we continue to see great job losses, we would have to see prices drop and some businesses fail because of decreasing demands from a highly unemployed consumers. However, I'm sure the government will increase minimum wages and continue printing money to fallaciously counteract it, thereby inflating our dollar.
    Again, there are other factors which then come into account, such as the world no longer holding our dollars. That day is soon at hand. At that point we would see a great inflation of consumer product prices and most everything else. That would then bring up oil prices for us, further worsening price inflation on top of dollar inflation. Rest assured that will be abated by our government deciding to shift its currency to a new standard, New World Order arrangement or not.

    That's how I asess the issue.

  5. #25
    Guerilla Urbanist Brendan's Avatar
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    Quote Originally Posted by Lateralus View Post
    So that's why they were using cigarettes as currency after WWII?
    Hyperinflation and being dirt poor are two very different things.
    There is no such thing as separation from God.

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    Senior Member Lateralus's Avatar
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    Quote Originally Posted by Brendan View Post
    Hyperinflation and being dirt poor are two very different things.
    That had nothing to do with being dirt poor. I'd go into detail, but I have the feeling it would be a waste of time, so I'll refer you to this. That essay should give you some background on monetary theory.
    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  7. #27
    Guerilla Urbanist Brendan's Avatar
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    Quote Originally Posted by Lateralus View Post
    That had nothing to do with being dirt poor. I'd go into detail, but I have the feeling it would be a waste of time, so I'll refer you to this. That essay should give you some background on monetary theory.
    Tempting, but I'll stick to my economics professor for that.
    There is no such thing as separation from God.

  8. #28
    Senior Member Maabus1999's Avatar
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    Hyperinflation will happen if they keep interests low or lend too much long term money at low rates, causing massive over leveraging and lending. At the moment what is keeping this at bay is the other countries of the world (who are now entering hyperinflation in some cases) which is strengthening our dollar.

    What you will have right now is deleveraging, which is deflationary, but it needs to happen. If you stop a natural course of something, it will cause problems later. There is no easy fix for this, and pumping money may not be the best course. We are like an addict, addicted to cheap money. What they are doing is just attempting to feed the addict instead of letting it go cold turkey. If it is the right course, time will tell, but I foresee more problems, and hyperinflation is a possible one.

    However, it is hard to say what will happen, other then it will be bloody. And no one can predict what can happen, just like how the two strongest currencies in the world are the one with the lowest interest rates, which defies normal economic theory and will create new ones once the reasons are fully known. Remember, Mr. Greenspan even said he's thinking for the past 40 years was "flawed." Not sure how, it was pretty obvious that housing and the lending for it was not sustainable...

    I just hope/pray that we don't go above 12% unemployment because that will be basically a modern depression in my opinion (which I won't go into in here in detail why because it is off topic).

  9. #29
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    Quote Originally Posted by Maabus1999 View Post

    I just hope/pray that we don't go above 12% unemployment because that will be basically a modern depression in my opinion (which I won't go into in here in detail why because it is off topic).
    I, for one, wouldn't mind if you elaborated .

  10. #30
    Senior Member Lateralus's Avatar
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    Quote Originally Posted by Brendan View Post
    Tempting, but I'll stick to my economics professor for that.
    Of course, why bother studying other viewpoints.
    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

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