Skimming over the article I think the author is playing fast and loose with the terms currency and money.
Again, just skimming it, but he seems to assume that all of the Fed's input will be in currency (dollar bills folded in people's wallets), as opposed to money, which is far more likely.
Currency is mostly dollars and euros and yen and things of that nature, though you can get into funny currencies like airline miles.
Money encompasses a lot of things besides currency. For instance, if you sell your house to someone with owner financing (the buyer makes payments to you, not to the bank) you're creating money.
What is very nice, remembering super inflation, is that with computer systems we can add zeroes to our digital exchange as easily as we need to as the value of the money changes over night, there may even be an inflationary tax in the future that happens automatically every time money changes hands as the Federal Government tries to find those missing stimulus dollars flung furiously at fine fools.
Hmm, I was thinking the same think, about the "fast and loose description,.......but I DO have a wheelbarrow. It's orange. I've been considering painting it some less obtrusive color,....and maybe mounting a gun rack across the handles,.....
Here's a question, how many wheelbarrows full of money will it take to buy a wheelbarrow??? And how do you haul that much, if you need a wheelbarrow to haul it, if you don't already have a wheelbarrow? My god, its the chicken or the egg all over again.
"Fast and loose" seems irrelevant, when so many knowledgeable folks have been expecting and predicting some notable increase in the rate of consumer price inflation for a long, long time.
You can't expand the money supply, you can't run interest rates down toward zero, without CPI increasing. That's nothing but history, over and over and over.
It ain't that us Olde Pharts know so much or have long memories: It's that we're flat effing fed up with going through this caca every dozen or twenty years on account of all these chrome-domed "leaders" screwing up the system. It's just that this time around we've had a professional-level screwing up since 1977, and the added compassion has merely exacerbated the cancer.
They keep yapping about toxic assets, but it looks like we've elected and appointed a bunch of toxic liabilities.
Well, paraphrasing the Guide (and counting on others to recognize the reference), we've decided to burn down all the forests. I think that's a sensible move, don't you?
I don't owe $x multiplied by some inflationary index, I owe $x. If that also happens to be the same price as a stick of gum...
...which is why the .gov is doing this in the first place, to get out of actually paying for their socialist utopian projects and payoffs for their corporate whoremasters...
Yeah, my wheelbarrow is already full of L33t Tacticool stuff, for when the SHTF, per GunKid's directions. You mean I gotta get a second one? Cool. Two is one, and one is none. Now I gotta find that can of black spraypaint...
Skimming over the article I think the author is playing fast and loose with the terms currency and money.
ReplyDeleteAgain, just skimming it, but he seems to assume that all of the Fed's input will be in currency (dollar bills folded in people's wallets), as opposed to money, which is far more likely.
Currency is mostly dollars and euros and yen and things of that nature, though you can get into funny currencies like airline miles.
Money encompasses a lot of things besides currency. For instance, if you sell your house to someone with owner financing (the buyer makes payments to you, not to the bank) you're creating money.
What is very nice, remembering super inflation, is that with computer systems we can add zeroes to our digital exchange as easily as we need to as the value of the money changes over night, there may even be an inflationary tax in the future that happens automatically every time money changes hands as the Federal Government tries to find those missing stimulus dollars flung furiously at fine fools.
ReplyDeleteI'm saving up for a wheelbarrow!
ReplyDeleteHmm, I was thinking the same think, about the "fast and loose description,.......but I DO have a wheelbarrow. It's orange. I've been considering painting it some less obtrusive color,....and maybe mounting a gun rack across the handles,.....
ReplyDeleteHere's a question, how many wheelbarrows full of money will it take to buy a wheelbarrow??? And how do you haul that much, if you need a wheelbarrow to haul it, if you don't already have a wheelbarrow? My god, its the chicken or the egg all over again.
ReplyDeleteEh, my grocery store is in my basement.
ReplyDeleteJust in case.
I saw this story on Ace this morning. First thing I read when I logged on in the morning. Not a good way to start the day.
ReplyDeleteHey don't worry everybody, more dollars have been destroyed in the current depression than are being printed. It's still deflation time.
ReplyDeletePeople should read Michael Shedlock if they want to get news from an economist who knows what he's talking about. Not t3h MSNBC
Obama's out to make everyone middle class, by lowering the bar for middle class to, oh, say, Weimar Republic standards.
ReplyDeleteWho knew that Gunkid was so far ahead of his time?
ReplyDeleteMan, and to think we mocked him so mercilessly.
"Fast and loose" seems irrelevant, when so many knowledgeable folks have been expecting and predicting some notable increase in the rate of consumer price inflation for a long, long time.
ReplyDeleteYou can't expand the money supply, you can't run interest rates down toward zero, without CPI increasing. That's nothing but history, over and over and over.
It ain't that us Olde Pharts know so much or have long memories: It's that we're flat effing fed up with going through this caca every dozen or twenty years on account of all these chrome-domed "leaders" screwing up the system. It's just that this time around we've had a professional-level screwing up since 1977, and the added compassion has merely exacerbated the cancer.
They keep yapping about toxic assets, but it looks like we've elected and appointed a bunch of toxic liabilities.
Art
Well, paraphrasing the Guide (and counting on others to recognize the reference), we've decided to burn down all the forests. I think that's a sensible move, don't you?
ReplyDeleteOne "benefit" of hyperinflation would be many mortgage owners will be able to own their homes!
ReplyDeleteI don't owe $x multiplied by some inflationary index, I owe $x. If that also happens to be the same price as a stick of gum...
I don't owe $x multiplied by some inflationary index, I owe $x. If that also happens to be the same price as a stick of gum...
ReplyDelete...which is why the .gov is doing this in the first place, to get out of actually paying for their socialist utopian projects and payoffs for their corporate whoremasters...
Yeah, my wheelbarrow is already full of L33t Tacticool stuff, for when the SHTF, per GunKid's directions. You mean I gotta get a second one? Cool. Two is one, and one is none. Now I gotta find that can of black spraypaint...
ReplyDelete