That's something I'm having a hard time understanding. Here's my point...perhaps someone can help clear this up for me:
1. $128 trillion in unfunded liabilities (future debt)
2. $12 trillion or so in real debt
3. trillions lost due to a retraction in the money supply (when I say money supply...I mean either bad debt written off from foreclosed homes and credit cards...and also the lack of credit available to consumers and businesses).
There are 2 types of inflation. 1. Printing money 2. Creation of credit
With all of this in mind, folks are expecting massive inflation. However, with a absolute MASSIVE MASSIVE deflation of the money supply, mainly through the disappearance of credit, how can we expect to experience hyperinflation anytime soon unless the government creates massive credit through banks and lending practices? They'd have to create 10's of trillions of dollars through credit JUST to get us back to where we were back before the credit bubble burst. The amount they've created thus far is akin to pointing a garden hose at a huge forest fire.
How does hyperinflation become a reality? I lean towards massive deflation but am open to changing my mind. Also, since gold seems to have been tracking with stocks to some degree, I also lean towards a significant correction in gold rather than a significant price increase.
PS- This post is targeted at no one in particular even though I did respond to a certain post.
AI
