Jump to content
House Price Crash Forum
General Congreve

Quotes For The Deflationists

Recommended Posts

"Inflation has NOTHING whatsoever to do with consumer demand pull or wage cost push. It will be a currency related item producing hyperinflation in the midst of ugly business conditions." Jim Sinclair, Popular Newsletter Analyst

"Those who are relying on a high rate of unemployment to keep inflation in check will be severely disappointed. There just isn’t any historical basis for that belief in this country or any other. In fact, there are some extreme examples today of countries that experience high rates of unemployment along with runaway inflation." Michael Pento, Money Manager

"Uncle Sam’s unfunded liabilities now exceed $100 trillion. Per the Federal Reserve’s own data, the United States’ monetary base has skyrocketed from $735 billion, in January of 2004, to over $1.7 trillion today. To believe that the paper tickets in my wallet, Federal Reserve Notes, will somehow gain value over time has always struck me as absurd. In my opinion, the stage has been set for an explosion in the prices of everyday goods and services." Eric Englund, Publisher

"Government-controlled fiat money is fraudulent money. It is money that is created out of thin air, in violation of property rights: fiat-money production doesn’t require any of the wealth-producing activities characteristic of the free market. It is and will always be, by construction, fraudulent money…. Austrian economics would rightly maintain that current fiat-money policies have become increasingly inflationary – and they should have little doubt that the forces and instruments that can pave the way towards hyperinflation are already in place and gaining strength by the day." Thorsten Polleit, Hon. Professor Frankfurt School of Finance

"I’m afraid that for many reasons, the government is doing just about everything possible to push the economy over the edge. First of all, the government is much more powerful than in the 1930s. People are much more used to thinking of the government as being the solution to the problem, instead of being the cause. They are going to make exactly the same mistakes – but bigger this time. They are going to wind up destroying the currency." Doug Casey, Best Selling author

Share this post


Link to post
Share on other sites
Jim Sinclair, Popular Newsletter Analyst

Michael Pento, Money Manager

Eric Englund, Publisher

Thorsten Polleit, Hon. Professor Frankfurt School of Finance

Doug Casey, Best Selling author

whoooooooooooo?

deflation in hoose prices it is for a good long while yet

Edited by getdoon_weebobby

Share this post


Link to post
Share on other sites
"I’m afraid that for many reasons, the government is doing just about everything possible to push the economy over the edge".

The current cabinet are signing on next May. More theft is required and only 10 months to do it in.

Share this post


Link to post
Share on other sites
whoooooooooooo?

deflation in hoose prices it is for a good long while yet

Never heard of Jim Sinclair?

Yes, deflation in house prices in real terms, absolutely, everything else will be going up relative to wages.

Share this post


Link to post
Share on other sites
Never heard of Jim Sinclair?

Yes, deflation in house prices in real terms, absolutely, everything else will be going up relative to wages.

sounds like the classic BUST phase in Austrian Economics.

Share this post


Link to post
Share on other sites
But isnt money now in less supply than it was before?

This is one of the points being made. It's not the fact that credit has been sucked out and not enough new money has taken it's place. It's the fact that wholesale printing of a currency ultimately devalues that currency. A devalued currency means rising prices, aka inflation, especially if you are a net importer like the US or UK.

Share this post


Link to post
Share on other sites

Here's another couple:

"The future solvency of the United States as a nation state is currently in jeopardy. It is in far deeper trouble than the mainstream press cares to admit. There are simply not enough new buyers of debt on this planet to support the spending programs of the United States government." Sprott Asset Management

So more Printy, Printy, ergo currency devaluation, ergo infaltion.

"The severe recession continues to deepen. My broad outlook has not changed; the worst of the financial and economic crises remain ahead of us." John Williams, Shadowstats Newsletter

Good.

Share this post


Link to post
Share on other sites
"Inflation has NOTHING whatsoever to do with consumer demand pull or wage cost push. It will be a currency related item producing hyperinflation in the midst of ugly business conditions." Jim Sinclair, Popular Newsletter Analyst

A lot of hyperinflationists show their colours as just anti-dollar moralists [Jim Willie is a good example]. Underlying their belief/rant that the dollar will collapse is the belief that it ought to for whatever reason. Though there are good fundamental reasons for the dollar to devalue, hyperflationists tend to lack not only all proportionate but also a chronology within which events will take place. The perceived fundamentals over-ride all else. Yet, there are obvious countering forces at play such as a credit contraction, debt-deflation, collapsing markets and unemployment which the more sobre-minded are starting to recognise.

JS, seeing these realities in the world, realized that there was going to be no conventional inflation or re-running of the 70s show. Hence his early shift in narrative to a "currency event". Yet this does not have to be hyper-inflationary; some "currency event" could well happen without the currency having to collapse. Nor does it have to happen immediately; there may be a chronology involved where the currency could strengthen first due to a period of deleveraging. Only later once the leverage has been unwound and when the dollar is seen to be only backed by a hollow economy and a poorer consumer would the currency face a probable devaluation on the fx markets against stronger currencies.

But this might not be seen for a good few years yet and would not destroy the dollar... just devalue it. A possible chronology such as this is not even imagined by hyperflationists because they are too obsessed with a simple and single idea. They are rationalists not historicists.

I call the chronology out-lined here hyper-deflation, where all paper assets deflate eventually including cash. This is a macro-economic view which would have to eventually involve a value-centric as opposed to price-centric approach.

Edited by roman holiday

Share this post


Link to post
Share on other sites
Here's a quote for you:-

"This poster appears to have assembled a vacuous collection of idiocy from a variety of clueless no-namers" - me, today.

:lol::lol::lol:

The hyperinflationist celebrities z-list

Who's next, Jordan? She's got hyperinflated assets

Edited by VoteWithYourFeet

Share this post


Link to post
Share on other sites
Here's a quote for you:-

"This poster appears to have assembled a vacuous collection of idiocy from a variety of clueless no-namers" - me, today.

heres a quote for you:-

"this poster is only impressed if words are from the mouths of the high and mighty, those with power imbued on them, famous and well known intellectuals, who didnt see it coming." - me, today.

Share this post


Link to post
Share on other sites

If increasing the supply of something doesn't decrease it's value, then we best pack this economics in right now.

Astrology anyone?

I know Noel likes it.

Share this post


Link to post
Share on other sites
Here's a quote for you:-

"This poster appears to have assembled a vacuous collection of idiocy from a variety of clueless no-namers" - me, today.

Jim Sinclair, though possibly deluded, is not a clueless no-namer. :P

Share this post


Link to post
Share on other sites
If increasing the supply of something doesn't decrease it's value, then we best pack this economics in right now.

Astrology anyone?

I know Noel likes it.

Yeah, but, QE is not like real money, you know issued by banks as credit.

Share this post


Link to post
Share on other sites
This is one of the points being made. It's not the fact that credit has been sucked out and not enough new money has taken it's place. It's the fact that wholesale printing of a currency ultimately devalues that currency. A devalued currency means rising prices, aka inflation, especially if you are a net importer like the US or UK.

How can wholesale printing of a currency devalue that currency if it is not enough to replace the money that has already been sucked out? AFAIK the inflationist argument is based on the belief that ultimately too much money will be printed.

Share this post


Link to post
Share on other sites

Why does it always have to be hyper inflation?

If we do get some inflation, then it'll start off weak, have to be contained and then the rise in interest rates will whack the economy.

I see inflation would be a problem when it occurs, because with the base rate at 0.5 percent, they'll have to do something about it and raise interest rates. The official inflation figure will still fall for a bit won't it?

Share this post


Link to post
Share on other sites
How can wholesale printing of a currency devalue that currency if it is not enough to replace the money that has already been sucked out? AFAIK the inflationist argument is based on the belief that ultimately too much money will be printed.

thats a good point, but the loss is in the bank credit created on currency reserve.

the currency reserve has not decreased.

so adding more will enable banks to create even more credit than before. demand will need to be created so interest rates will be very attractive. money will flood into assets like housing, rising prices and begetting more credit.

this is the plan of the BoE.

they didnt see the bubble last time....they wont see it again and by the time they do, the inflation will already be with us. withdrawing the currency as they promised to do will lead to banks going bust...again, as they wont have the capital to support their loan books.

QE is no solution.

Share this post


Link to post
Share on other sites
Why does it always have to be hyper inflation?

If we do get some inflation, then it'll start off weak, have to be contained and then the rise in interest rates will whack the economy.

I see inflation would be a problem when it occurs, because with the base rate at 0.5 percent, they'll have to do something about it and raise interest rates. The official inflation figure will still fall for a bit won't it?

Personally I've never been one to say it'll definitely be hyperinflation. But there's a good chance we'll get high inflation compared to what we've been used to, I think we could easily see double digits.

When it does pick up, interest rates will have to go up, as a result, the economy will be crippled further, tax receipts will fall, more money will be printed to pay the country's debts, the currency will devalue further, compounding our problems as currency born inflation will rise. Catch 22.

Edited by General Congreve

Share this post


Link to post
Share on other sites
heres a quote for you:-

"this poster is only impressed if words are from the mouths of the high and mighty, those with power imbued on them, famous and well known intellectuals, who didnt see it coming." - me, today.

Couldn't have put it better myself.

Share this post


Link to post
Share on other sites
thats a good point, but the loss is in the bank credit created on currency reserve.

the currency reserve has not decreased.

so adding more will enable banks to create even more credit than before. demand will need to be created so interest rates will be very attractive. money will flood into assets like housing, rising prices and begetting more credit.

this is the plan of the BoE.

they didnt see the bubble last time....they wont see it again and by the time they do, the inflation will already be with us. withdrawing the currency as they promised to do will lead to banks going bust...again, as they wont have the capital to support their loan books.

QE is no solution.

That's the stated plan of the BoE.

The actual plan is to print money to cover all the lies the commercial banks and government have told everyone.

Share this post


Link to post
Share on other sites
thats a good point, but the loss is in the bank credit created on currency reserve.

the currency reserve has not decreased.

so adding more will enable banks to create even more credit than before. demand will need to be created so interest rates will be very attractive. money will flood into assets like housing, rising prices and begetting more credit.

this is the plan of the BoE.

they didnt see the bubble last time....they wont see it again and by the time they do, the inflation will already be with us. withdrawing the currency as they promised to do will lead to banks going bust...again, as they wont have the capital to support their loan books.

QE is no solution.

Yes I should have added that the inflationist argument is also based on the belief that the money that has been sucked out will eventually be blown back in again because we still have the same financial system as before: the one that rewards loose lending. So along with QE, we'll end up with an overall increase in the money supply.

Share this post


Link to post
Share on other sites
That's the stated plan of the BoE.

The actual plan is to print money to cover all the lies the commercial banks and government have told everyone.

I missed the bit in the plan where they pledge to withdraw the QE.....not sure how they are gonna persuade banks to play.

one method, mentioned by Bernanke, was to PAY the banks to keep the stuff on deposit at the Fed

course, that means they get paid for the credit theyve issued against it AND for the capital in the reserve.

double bubble.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   285 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.