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Injin

Why It's Hyperinflation.

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If you could type any amount into your bank account and buy anything you wanted and you'd been doing it for decades, without any real reference to reality - would you be able to stop?

Is there anyone who could handle this sort of power without it sending them mental?

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If you could type any amount into your bank account and buy anything you wanted and you'd been doing it for decades, without any real reference to reality - would you be able to stop?

Is there anyone who could handle this sort of power without it sending them mental?

I could, but I'm not so sure about my friend Trevor.

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If you could type any amount into your bank account and buy anything you wanted and you'd been doing it for decades, without any real reference to reality - would you be able to stop?

Is there anyone who could handle this sort of power without it sending them mental?

Actions speak louder than words - 'they' cannot help themselves

- stock market bit nervous? - print

- stock market going up like a rocket - print because we don't want to spoil the recovery

- houses down - print

- houses going up - print because we don't want to spoil the recovery

- unemployment up - print

- unemployment down - print because we don't want to spoil the recovery

- exports down - print

- exports up - print because we don't want to spoil the recovery

In fact there is no point going short on anything - even if you sell ice cubes to innuites you are bound to make 'money' in this climate.

Cash has no meaning and I therefore want to be the first to predict that we have entered the 'break-up' boom (I may not actually be the first but nice try ehh!).

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Injin you really should know better than to post this. Haven't you learned anything?

Rate of money growth has plummeted. Lending is miserable.

This environment is overwhelmingly deflationary.

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Deflation its locked in.

175bn...doesnt cover 1 tenth of the loss of asset values ( real, not undisclosed.)

and where is the printy? why its back in the BoE...propping up the banks. as it needs to be.

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If you could type any amount into your bank account and buy anything you wanted and you'd been doing it for decades, without any real reference to reality - would you be able to stop?

Is there anyone who could handle this sort of power without it sending them mental?

This is not how things work. Injin knows this is not how things work. This is a troll post.

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Injin you really should know better than to post this. Haven't you learned anything?

Rate of money growth has plummeted. Lending is miserable.

This environment is overwhelmingly deflationary.

Yes broad money growth has plummeted, which is indeed overwhelmingly deflationary. However Injin is talking about printing BASE money, which is physical cash and money that banks and the governments have in their accounts with the bank of England.

Base money is being printed at a voriciverous rate, (and I can't spell). This money is being spent by the government on government employees etc some of whom are taking it and using it to pay off their debt, which is further deflationary (reducing debt even further).

However others receiving this fresh money from the government are spending it, and this reduces decreases in prices, and stimulates the economy enough to prevent a fresh fall in prices. hence the BOE is currently printing enough to offset this credit deflation.

So at the moment we have neither price inflation nor deflation - everything is in balance.

But in future there will be heavy inflation.

My advice - move your money to economies that have not been affected by the credit crunch on either side.

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But in future there will be heavy inflation.

My advice - move your money to economies that have not been affected by the credit crunch on either side.

So how does this fit in with the new slew of banking regulations coming. The ones that are going to require more capital to be held by banks. (Hint: the banks will ned a lot more than £175Bn of extra capital)

There are no economies that haven't been affected, except maybe North Korea. Good luck investing there ;)

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Yes broad money growth has plummeted, which is indeed overwhelmingly deflationary. However Injin is talking about printing BASE money, which is physical cash and money that banks and the governments have in their accounts with the bank of England.

Base money is being printed at a voriciverous rate, (and I can't spell). This money is being spent by the government on government employees etc some of whom are taking it and using it to pay off their debt, which is further deflationary (reducing debt even further).

However others receiving this fresh money from the government are spending it, and this reduces decreases in prices, and stimulates the economy enough to prevent a fresh fall in prices. hence the BOE is currently printing enough to offset this credit deflation.

So at the moment we have neither price inflation nor deflation - everything is in balance.

But in future there will be heavy inflation.

My advice - move your money to economies that have not been affected by the credit crunch on either side.

Who is receiving it? apart from banks? who leave it on deposit at the BoE?

they are not lending it, so how is it entering circulation?

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Who is receiving it? apart from banks? who leave it on deposit at the BoE?

they are not lending it, so how is it entering circulation?

The government is receiving it, then spending it into circulation.

This is happening by the government selling fresh gilts and selling them to the bank of England.

Of course what will happen in the future is that the bank of england will just (in agreement with the government) cancel those gilts, so the government does not have to make payments on them, thus making the effect of the whole QE exercise money printing.

Just by dressing it up this way it does not seem to be money printing unless you understand economics properly.

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Guest DissipatedYouthIsValuable
If you could type any amount into your bank account and buy anything you wanted and you'd been doing it for decades, without any real reference to reality - would you be able to stop?

Is there anyone who could handle this sort of power without it sending them mental?

Yes, I could.

Please let me try.

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If you could type any amount into your bank account and buy anything you wanted and you'd been doing it for decades, without any real reference to reality - apart from the fact that you would be known as one of the men that broke Britain, vilified and probably incarcerated / incinerated - would you be able to stop?

Is there anyone who could handle this sort of power without it sending them mental?

Amended.

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The government is receiving it, then spending it into circulation.

This is happening by the government selling fresh gilts and selling them to the bank of England.

Of course what will happen in the future is that the bank of england will just (in agreement with the government) cancel those gilts, so the government does not have to make payments on them, thus making the effect of the whole QE exercise money printing.

Just by dressing it up this way it does not seem to be money printing unless you understand economics properly.

No, banks are buying gilts in the normal way.

they then sell gilts, not neccessarily the same ones, maybe not even the same banks, to the BoE.

the majority of the money is on deposit at the BoE....someone had a graph on it a day or so ago here somewhere.

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Of course what will happen in the future is that the bank of england will just (in agreement with the government) cancel those gilts, so the government does not have to make payments on them, thus making the effect of the whole QE exercise money printing.

Just by dressing it up this way it does not seem to be money printing unless you understand economics properly.

That won't happen

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like a lot of people on here i would love deflation.

but we must face the facts. they are printing money. rates are zero. money only represents some tradable value. you cannot print value. the value of things may well be devaluing. but the value ascribed to cash is debased each time they print the stuff.

now i know that people say that they have only printed 175bl and upto 250bl,but thats not quite true. the boe is covering all those mortgage backed securities as they come up to be rolled over. where is that money coming from. the printing press. they have printed billions and billlions. now some would say that all the money is going in the banks deposits, so it dosent matter. yes it does. if the banks are simply replacing all the losses with qe money, then there are no losses, and with no lost money its of we go again.

REGARDLESS OF THE INTERLECTUAL ARGUEMENTS, PRINTING MONEY DEBASES EXISTING MONEY IN CIRCULATION. DEBASED MONEY WILL BUY YOU LESS.

ONE OTHER THING, THERE IS NO LIMIT TO HOW MUCH MONEY THEY CAN PRINT

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Yes broad money growth has plummeted, which is indeed overwhelmingly deflationary. However Injin is talking about printing BASE money, which is physical cash and money that banks and the governments have in their accounts with the bank of England.

Broad money growth has fallen a little, yes. It's still growing though and at a %age rate.

Base money is being printed at a voriciverous rate, (and I can't spell). This money is being spent by the government on government employees etc some of whom are taking it and using it to pay off their debt, which is further deflationary (reducing debt even further).

Paying debt is not deflationary - it just passes money around. This weird argument that bankers detroy money people hand them is mental - they just keep it and spend it.

However others receiving this fresh money from the government are spending it, and this reduces decreases in prices, and stimulates the economy enough to prevent a fresh fall in prices. hence the BOE is currently printing enough to offset this credit deflation.

So at the moment we have neither price inflation nor deflation - everything is in balance.

But in future there will be heavy inflation.

My advice - move your money to economies that have not been affected by the credit crunch on either side.

They have made lots of promises which they are printing to meet.

Regardless - they won't stop printing until someone wrests the printing presses from them and melts them down.

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You really are dillusional now imho if you think that all this is going to end up being deflationary.

Stock market up, gold up, oil up, exports up, food up even fecking house prices are going up............So where is the smart money going, cash is being ditched for assets its obvious.

Whether you think there is an intellectual coherant argument for deflation you should think again.Why? because inflation is debt default without the wars. Who needs debt default....................most of the western world and it's indebted population.

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Who is receiving it? apart from banks? who leave it on deposit at the BoE?

they are not lending it, so how is it entering circulation?

I'm fairly certain it is via Kerry Katona. She is the transmission mechanism.

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You really are dillusional now imho if you think that all this is going to end up being deflationary.

Stock market up, gold up, oil up, exports up, food up even fecking house prices are going up............So where is the smart money going, cash is being ditched for assets its obvious.

Whether you think there is an intellectual coherant argument for deflation you should think again.Why? because inflation is debt default without the wars. Who needs debt default....................most of the western world and it's indebted population.

theyd better get printing properly in that case. 175bn?.....chickenfeed....thats just next years borrowing requirement.

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theyd better get printing properly in that case. 175bn?.....chickenfeed....thats just next years borrowing requirement.

You need to multiply your 175 by 10 thats what it will translate into in terms of lending. Then when the inflation takes hold and starts pushing up assets prices?

You know what I could agree with your analysis if were purely an exercise in rationality, but unfortunatley it isn't its printy printy with mark to market accounting.

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theyd better get printing properly in that case. 175bn?.....chickenfeed....thats just next years borrowing requirement.

Why on earth would they tell you?

They say just enough, but they never stop printing.

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