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Hyperdeflation

Hyperdeflation

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#1 linrom1

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Posted 06 June 2021 - 10:34 PM

So why do I continue to insist nonetheless that we are headed into a catastrophic deflation? The short answer is that even tens of trillions of stimulus dollars is just a drop in the bucket compared to a deflationary juggernaut poised to suck inflation into a black hole. When the bubble finally pops, here's a list of things that will deflate almost to nothing before the central bank has a chance to even attempt a resuscitation:
 

  • A hyperleveraged derivatives market valued at $2 quadrillion
  • The public-pension systems of two-dozen states
  • Residential and commercial real estate worth around $55 trillion
  • $3.8 trillion in money markets that lubricate the financial system

Can you see the problem?  Not that anyone doubts the Fed's determination to keep the system liquid at all costs.  It's just that the central bank's statutory and logistical ability to do so will be outmatched by the precipitous shrinkage that some black swan is destined to cause.

 

https://www.rickacke...uyaZunZiCXh6gI=

 



#2 PrintFaster

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Posted 06 June 2021 - 11:50 PM

After the world central banks have successfully launched and sustained MMT, it will be tried over and over again for the next 50 years.



#3 andr99

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Posted 07 June 2021 - 03:19 AM

if you have hyperdeflation all the countries with huge public debts will face default. One of the common ways to reduce debt and the interests you pay on it, is to print money in order to produce inflation which will consume your debt. If you have deflation your debt will explode and you will face default. It doesn' t look probable to me that such a thing may happen.    


Edited by andr99, 07 June 2021 - 03:21 AM.

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#4 LMF

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Posted 07 June 2021 - 09:54 AM

The central banks will never stop printing ever. Unless they get disbanded somehow which is the most unlikely scenario of all. So they keep printing and we still get periodic down episodes like the 2008 top about every 10-12 years. Thats all were ever going to get. The long term quarterly charts prove that. Next one should be around 2030 or so. When the NDX is at 100,000.

#5 slupert

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Posted 07 June 2021 - 11:53 AM

So why do I continue to insist nonetheless that we are headed into a catastrophic deflation? The short answer is that even tens of trillions of stimulus dollars is just a drop in the bucket compared to a deflationary juggernaut poised to suck inflation into a black hole. When the bubble finally pops, here's a list of things that will deflate almost to nothing before the central bank has a chance to even attempt a resuscitation:
 

  • A hyperleveraged derivatives market valued at $2 quadrillion
  • The public-pension systems of two-dozen states
  • Residential and commercial real estate worth around $55 trillion
  • $3.8 trillion in money markets that lubricate the financial system

Can you see the problem?  Not that anyone doubts the Fed's determination to keep the system liquid at all costs.  It's just that the central bank's statutory and logistical ability to do so will be outmatched by the precipitous shrinkage that some black swan is destined to cause.

 

https://www.rickacke...uyaZunZiCXh6gI=

 

Your right , its just going to take awhile. Look at Japan, perfect recipe for deflation , declining population . Guess what's going to happen here laterthis decade? 



#6 chem

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Posted 07 June 2021 - 01:03 PM

Maricopa is wrapping up the audit, very interested in the segregated (quarantined) ballots that appear to be about 10 -15% of the total. Eyes on...



#7 pdx5

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Posted 07 June 2021 - 02:08 PM

Maricopa is wrapping up the audit, very interested in the segregated (quarantined) ballots that appear to be about 10 -15% of the total. Eyes on...

Keep us updated on Maricopa audit! THANKS!


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#8 gm_general

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Posted 10 June 2021 - 09:12 AM

The problem with printing lots of new money is the debt service costs that come with it. Debt service costs since 2000 are so high we are in a permanent recession which they lie about by adjusting inflation numbers. When interest charges exceed the amount that can be paid you get a crash shortly after. This threshold is about 20% of total GDP. In 2019 interest costs yearly in the US on total debt public + private were $3.6T, so with the spree we are on it doesn't look good. 2020 data comes out in August.

 

https://fred.stlouis...A2061C1A027NBEA