inflation and 99 years of the Feds policies

bronco2078 · September 3, 2012 10:43PM

There is a nice graph in this article over at zerohedge showing inflation over the last 800 years .

A nice little ski slope with 2012 at the top , you wouldn't think it could get much steeper from here

black diamond run

derryb · September 3, 2012 10:44PM

check your link

Correct link?

bronco2078 · September 3, 2012 10:54PM

Thanks derry, I don't how that other link got there i never even visited that page

I don't know whats going on around here put I can't preview a post anymore to test the links

derryb · September 3, 2012 11:04PM

preview has been out of order for me for a while now. Go to edit mode to see your OP link and you will probably see the problem. First part displayed is your text, second part is actual http address.

cohodk · September 3, 2012 11:18PM

<< There is a nice graph in this article over at zerohedge showing inflation over the last 800 years .

A nice little ski slope with 2012 at the top , you wouldn't think it could get much steeper from here

black diamond run >>

I've been saying that for years. The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops?

derryb · September 3, 2012 11:45PM

<< 

<< There is a nice graph in this article over at zerohedge showing inflation over the last 800 years .

A nice little ski slope with 2012 at the top , you wouldn't think it could get much steeper from here

black diamond run >>

I've been saying that for years. The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops? >>

It won't be allowed to pop - it ensures soverign debt and future government obligations are paid with cheaper money. Unfortunately it also ensures retirements and savings are worth less down the road.

cohodk · September 3, 2012 11:52PM

Oh, it WILL pop. ALL bubbles pop. Sometimes the thin film holding it together is very elastic, but they ALWAYS pop. Always.

ebaytrader · September 3, 2012 11:57PM

<< Spot the point in this 803 year timeline of world inflation, when the Fed was created. >>

The Fed is responsible for the inflation of the World?

tneig · September 4, 2012 12:50AM

<< Unfortunately it also ensures retirements and savings are worth less down the road. >>

Indeed. This goes more unnoticed as a silent killer. There are fewer with pensions everyday, and those pensions are only as good as the institution supplying the funds, and the funds are only as valuable as the dollar. On top of that much less folks have, and will have pensions. So many more will be relying mostly on SS. Many are $$ unprepared and I assume that number is growing.

jmski52 · September 4, 2012 1:02AM

The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops?

But, but - Bernanke promised that he wouldn't let that happen!

Think about it this way - if the government can't pay it's employees, then it will act in its own self-interest. <<Insert your own scenario here>>

yellowkid · September 4, 2012 1:30AM

I think it was Lenin who said that the "debauching" of a currency, intended or not, is the easiest way to overthrow an existing order.

cohodk · September 4, 2012 2:07AM

<< The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops?

But, but - Bernanke promised that he wouldn't let that happen!

Think about it this way - if the government can't pay it's employees, then it will act in its own self-interest. <<Insert your own scenario here>> >>

You didnt answer my question.

guitarwes · September 4, 2012 2:40AM

<< I've been saying that for years. The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops? >>

Food, gas, and pm's will increase. I will be able to pay my cheap low APR mortgage with inflated pieces of paper all the while selling my pm's to be able keep up with the payments because my income raises hasn't kept up with inflation.

cohodk · September 4, 2012 9:20AM

<< 

<< I've been saying that for years. The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops? >>

Food, gas, and pm's will increase. I will be able to pay my cheap low APR mortgage with inflated pieces of paper all the while selling my pm's to be able keep up with the payments because my income raises hasn't kept up with inflation. >>

This is EXACTLY opposite of what I was thinking.

roadrunner · September 4, 2012 10:17AM

The greatest bubble ever created is the TBond/otc interest rate contract bubble. When that bursts, PM's will increase their purchasing power over papered assets regardless
of where the pog ends up.

derryb · September 4, 2012 10:17AM

"Because the Fed has kept interest rates too low for too long, Americans have saved too little and borrowed too much; consumed too much and produced too little; and imported too much and exported too little. Too much of our labor is devoted to the service sectors and not enough to goods production. Too much capital goes to Wall Street speculators and not enough to Main Street entrepreneurs. We built too many homes but not enough factories. We have developed too many shopping centers, and not enough natural resources. The list of Fed induced misallocations goes on."

"Fed intervention short-circuits the market driven process that resolves misallocations. The more stimulus that is provided, the harder market forces must work to try to restore equilibrium. As the misallocations grow over time, the efficacy of monetary measures diminishes."

Schiff's insightful opinion on FED policies

derryb · September 4, 2012 10:18AM

<< The greatest bubble ever created is the TBond/otc interest rate contract bubble. When that bursts, PM's will increase their purchasing power over papered assets regardless
of where the pog ends up. >>

BINGO, we have a winner.

cohodk · September 4, 2012 1:48PM

<< 

<< The greatest bubble ever created is the TBond/otc interest rate contract bubble. When that bursts, PM's will increase their purchasing power over papered assets regardless
of where the pog ends up. >>

BINGO, we have a winner. >>

So we have a massive parabolic inflationary spike? That lasts how long? Then what?

bronco2078 · September 4, 2012 1:52PM

A gold backed renminbi as the worlds reserve currency and a fiat dollar pegged loosely to it?

guitarwes · September 4, 2012 10:45PM

<< 

<< 

<< I've been saying that for years. The greatest bubble humankind has ever seen is the inflation bubble. What happens to PMs when it pops? >>

Food, gas, and pm's will increase. I will be able to pay my cheap low APR mortgage with inflated pieces of paper all the while selling my pm's to be able keep up with the payments because my income raises hasn't kept up with inflation. >>

This is EXACTLY opposite of what I was thinking. >>

I always like to be opposite. Why go with the flow? The swim is more exciting.

derryb · August 21, 2015 1:37PM

An interesting way to look at the FED

Baley · August 22, 2015 5:28AM

good post

inflation and 99 years of the Feds policies

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