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    • Mon, Mar 05, 2012 - 08:34pm

      #188
      craig_slater_nl

      craig_slater_nl

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      deflationary death spiral

    From Chris’s Inflation-Deflation Post he writes as below.

    As far as i can see, Nicole Foss TAE are convinced Myth 3 is real. Its not clear to me why they are so convinced that eventually the deflationary forces will take hold and we will spiral into an deflationary bust. Is the argument that they believe it will eventually become untenable for Fed to continue printing. These are smart people but i havent figured out the story.

     

    Myth #3:  The Fed cannot print money fast enough to replace the money that’s disappearing.  This is simply false. The Fed can print money at the speed of light.  Electrons are cheap and fast.  There is no technical reason that the Fed could not simple authorize every bank to put $100,000 into everybody’s individual bank accounts tonight, with instructions that it must be spent within a week, whereupon any remaining balance will be returned to the Fed.  Presto – instant money, and an instant end to deflation.  What prevents the Fed from doing this has nothing to do with any technical or physical limitations, but rather the desire to preserve the dollar’s international utility. 

    • Tue, Feb 07, 2012 - 06:47pm

      #36
      craig_slater_nl

      craig_slater_nl

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      vaults in netherlands

    does anyone know of any vaults in netherlands that one can store gold but that are not part of a bank.

    • Fri, Jan 13, 2012 - 09:29am

      #3
      craig_slater_nl

      craig_slater_nl

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      Inflation vs Deflation

     

    Thanks for the information, I shall research some more.

    So, inflationary bust or deflationary bust, that is the question.

     This certainly is a difficult one, because the actions one would take financially are very different. Deflation long cash, pay down debt. Inflation short cash, buy real assets, inflate away debt. Deflation, energy related actions further off as peak effects massively delayed by demand destruction.

    I would have thought hyper inflated currency would enable the payment on any debt level. Also, the powers that be are certainly going to try to reflate/inflate so i would imagine that the forecast deflation from Foss must be some time off while the inflationary money expansion is tried.

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