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Deflation Revisited
We think the USA may be at the end of its credit line, as recent empty-handed trips to surplus nations like China, Japan, Germany, Switzerland and offshore havens like the Caribbean banks show.
Why else were UBS and Alan Stanford pursued?
And why are the Big4 short Gold and Swiss Franc safe havens, whoops?
Is it the giant economic sucking sound?
People thinking they can get something for nothing may hope the printing presses will pay off their crushing compounding debts with funny money.
The Bible tells us debts are always paid and the borrower serves the lender. Maybe that accounts for Congress not facing down the banksters.
Inflationistas forget rising interest rates and expanding debts borrow growth and income from our economy to take more money out of our pockets and purses, with inflation pushing us into higher tax brackets.
This is yet another argument for the 1% Transaction Tax with a government spending freeze, if not the 28 million job cuts we the little people suffered since the 1913 Fed destroyed 98% of the value of the dollar and our savings.
To think this all means more inflation is a theoretical exercise bound for logical failure and contradiction.
Anyone who lived through a hyperinflation like Argentina, China, France, Germany, Japan, Russia, Thailand, Vietnam, Zimbabwe, to name just a few, knows it is no picnic.
This is especially true if there are no black market dollars to trade or food to buy because it is rotting in the fields or fertilizer and fuel cost too much. Hyperinflation means many people starve or become prostitutes. People forget Hoover fed starving Russians.
Art, Diamonds, Precious Metal Coins, Pensions and things are stolen or sold at a loss when people are hungry.
Hyperinflation means revolution and war.
See our Founding Fathers experience with the depression and hyperinflation of the Revolutionary War Continental in our other recent post.
