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    Is High Inflation Now A Bigger Danger Than A Deflationary Crash?

    Is High Inflation Now A Bigger Danger Than A Deflationary Crash?
    by Chris Martenson

    Tuesday, August 25, 2020, 5:08 PM

What’s the more likely event at this point: a deflationary crash or runaway inflation?

For a long time, Peak Prosperity co-founder Adam Taggart and I have hewed to the “Ka-POOM!” theory, which states that a major deflation will scare the central banks so badly that they overreact and pour too much liquidity into the system, thereby destroying it.

To visualize how this will play out, think of

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  • Tue, Aug 25, 2020 - 7:16pm



    Status: Platinum Member

    Joined: Apr 27 2010

    Posts: 2479


    Lord, give me a sign!

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  • Tue, Aug 25, 2020 - 9:41pm



    Status: Bronze Member

    Joined: Jun 29 2020

    Posts: 145



    I feel like I'm constantly swimming against the current. But what if I'm travelling with the flow of the stream and everyone else is swimming upstream and they can't tell the difference anymore?

    I have traveled thru industrial petro-farmland here in WI on my searches for land this week.

    It is truly amazing how EVERY rural home or farm you drive by is completely run by gasoline in the machines. All their toys are gas-powered as well. And propane tanks for heat and warm water.

    Really contrasts all the Amish on their buggies cruising around the heartland.

    Almost none of these "farms" have an edible food in the fields either.  Every other planting row is 1 of 5 different varieties of corn or 1 of 4 different varieties of soybeans. Just ingredients in the processed crap sold under the auspices of food at the big box.

    These people aren't really farmers anymore, they are the patsies and bag-holders for ADM and ConAgra and others.

    They are somehow convinced by government subsidies and ever-adjusted commodities prices paid to them by the ag corps to run up massive debt for the machines they drive around in pre-programmed, GPS optimized paths all so they can feed the ag-giant corporations' profit motives. And they can't even eat what they make.

    Now the dairy industry burns millions of gallons of gas every year collecting the milk daily from a single genetic bloodline distributed across the entire state. And then they pour it all together and boil it. And drive it to the gas station and walmart.

    It is literally illegal to buy local raw milk in America's Dairyland. Huh?


    I almost wish I'd never read The Long Emergency or heard of peak oil.

    Ignorance and greed would be bliss. Enlightenment is a frowned-upon burden with no profit motive or incentive.


    So I look towards the future of my children and our family's nutritional needs.  Potatoes and tomatoes and every gourd, squash and zucchini we can plant. Watermelons and berries and currants. Kale and lettuces and arugula ("It's a veg-e-ta-ble.") Cue another Steve Martin clip:

    Fruit and nut bearing trees perimeter this land in my visions, and the thought of broiler chickens surrounded by portable electric fences scratching and pooping up my soil helps me fall asleep at night.


    Going to look at 3.5 acres on a bluff overlooking the Mississippi River in the Driftless Region with the family tomorrow morning. Fingers crossed it fits the bill because land is really moving fast and the paper in my wallet and the bank feels pretty thin and light right now.

    I hope it doesn't sell before I can decide if I want to make an offer tomorrow. That's happened at least a half dozen time to me in the last 6 weeks.

    $20k for a 450 foot well is a pretty steep cost on this property, but 80+ inches of Driftless silt loam just makes my green thumb twitch, and the sunset view is to die for!

    The biggest kicker is the secure water table from the Mississippi river valley below will be worth the cost.  That "aquifier" won't go dry in my or my kids' lifetimes and 350' land elevation above the big river will save us from flooding and mosquitoes.

    I'm thinking low-flow pump with a reservoir at the top of the property.  Solar panel to run the pump to the reservoir from the well head and parallel piping at the head below the electric pump with a bypass for a hand pump. Just in case.

    The realtor I spoke to today has sold 6 properties in the last 2 days and is just driving up and down the ole Miss all week.

    So we leave at sun-up.

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  • Wed, Aug 26, 2020 - 5:19am



    Status: Bronze Member

    Joined: May 23 2020

    Posts: 226


    Farms and fuel

    Many farmers have solar and wind power as well. I also know many people who make their own ethanol or biodiesel. Some community colleges have workshops on it or did before covid...

    We need to think outside the box. You can use technology to help yourself become self sufficient without giving up everything. I guess I am more of a techno-prepper. 🙂





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  • Thu, Aug 27, 2020 - 7:22am



    Status: Bronze Member

    Joined: Dec 10 2013

    Posts: 397


    Fed pledges to focus on low unemployment and tolerate higher inflation.


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  • Thu, Aug 27, 2020 - 6:54pm



    Status: Member

    Joined: Dec 02 2017

    Posts: 9


    Wallpaper said:

    ten months ago it was

    notQE.... then QEinfinity... and now.....{drumroll......}

    QE2infinity and beyond.

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  • Mon, Aug 31, 2020 - 12:42pm



    Status: Member

    Joined: Sep 09 2017

    Posts: 18


    Sounds right

    Fed pledges to focus on low unemployment and tolerate higher inflation.

    So work more and make less, par for the course.

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  • Tue, Sep 01, 2020 - 9:59am



    Status: Member

    Joined: Dec 28 2017

    Posts: 2


    planfortomorrow said:

    I went back and looked at my diary and notes back 13 years when I began this new occupation that was born out of love for geography, world history, science, oil and gas, and world leaders, their central banks. The dominant theme has been just how wrong the experts have been with the timing of when the world economies would blow up and have a chain reaction effect on every other country because of the settlement of debt and whose responsible to pay. China was suppose to blow up bigtime and never become a developed nation. Japan has been a goner now for 30 years, Brazil, the United States, Europe, and yet, all have been trudging along and keeping the confidence of the investor class and the people. The market is largely psychological, a confidence game and it still functions. If it doesn't break now after being in a Depression, watching share prices hit all time highs and the only stress at the moment is will we get another blast of cash from Congress thus goosing the markets yet again and a vaccine by late Fall goosing the markets yet again. I am NOT an expert but, I can see that so long as the Fed wins its battle with public perceptions then this baby can run a lot longer than some believe here. I think we are closer to Dow 40,000 than a financial disaster. I just don't feel stressed right now that something is going to go horribly wrong but you can point fingers should a crisis arrive by election day. Otherwise we are back to "I would rather be a year early than a day late", an open ended guess that of course will come true like a broken clock striking 12 twice a day. I still think about the "one hand clapping". Does all this cash put into the market that primarily lands on the desk of the ultra rich and the few have the same Inflationary effect as if this cash landed on te desk of the middle class. I think because the money flow, its speed within the economy is way, way slower than if it landed on the desk of the middle class so not as much Inflation should be expected. I'm talking Carter administration Inflation. Right now, the Deflationary wave still has considerable room to run.  Peace

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