Posted by susterman on 14th of Dec 2009 at 03:46 pm
Matt
Most of the countries in the former URSS, in Africa, Middle
East, Arabs Countries, in South America are broken,
including rich ones like Emirates and
Venezuela.
The world continue to be a terrible place to live and many news
are ready to jump from the TV screens ....
printing money by itself does not cause inflation. It has
to be lent out and spent. And when debts are paid off, that
takes money out of the money supply. The Fed could print all
the money in the world, but if the banks didn't lend it out, it
can't cause inflation. When banks lend money, that increases
the money supply, money is mostly created by banks lending money
and interest paid on that money, not the printing presses. It
is said that 95% of the money supply is created out of thin air by
bank loans and credit.
watch money as debt
video, explains it. 99.9% of people have no idea how the
money supply works. Basically
there is a lot more debt
in the word than there is available money supplyto pay the
debt off i.e.
there is not enough money in the world to pay off all the
debt! So of credit lines get pulled and too many
loans called in, the printing presses would not be able to keep
up.
Posted by brucewayne on 14th of Dec 2009 at 10:34 pm
Inflationists would argue that Central Banks can instantly solve
that problem by adding zeros to a computer under a fiat money
system. Since all it takes is keyboard strokes vs. unleashing
painful losses for the fat cats on Wall Street all the way down to
the average Joe I think overall we will experience a great
inflation, but periodically there will be strong bouts of
deflation. The government can also hand out money through tax
credits and other gimmicks such as cash for clunkers so it isn't
just up to banks to re-inflate the money supply. Overall I
think we will cycle back and forth between inflation and deflation
until a large number of people lose faith in fiat monetary systems
and then hopefully we will get smart and add the store of value
property back to whatever we use as money next.
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Matt Most of the countries in
Greece is in Bankruptcy. So many countries around the world ...
Posted by susterman on 14th of Dec 2009 at 03:46 pm
Matt
Most of the countries in the former URSS, in Africa, Middle East, Arabs Countries, in South America are broken, including rich ones like Emirates and Venezuela.
The world continue to be a terrible place to live and many news are ready to jump from the TV screens ....
Following a similar move by Fitch,
Posted by susterman on 14th of Dec 2009 at 03:55 pm
Following a similar move by Fitch, S&P cuts Mexico's foreign-currency sovereign credit rating by a notch, to BBB/A-3, on worries about the fiscal 2010 budget
Dolar, Gold, Silver..... up or down with the new broken countries?
If countries are broken the only solution is to print and change papers for Dollars, Gold, Silver etc...
Dollars too because is the only world class courrency for the moment
printing money by itself does
Posted by matt on 14th of Dec 2009 at 04:10 pm
printing money by itself does not cause inflation. It has to be lent out and spent. And when debts are paid off, that takes money out of the money supply. The Fed could print all the money in the world, but if the banks didn't lend it out, it can't cause inflation. When banks lend money, that increases the money supply, money is mostly created by banks lending money and interest paid on that money, not the printing presses. It is said that 95% of the money supply is created out of thin air by bank loans and credit.
watch money as debt video, explains it. 99.9% of people have no idea how the money supply works. Basically there is a lot more debt in the word than there is available money supplyto pay the debt off i.e. there is not enough money in the world to pay off all the debt! So of credit lines get pulled and too many loans called in, the printing presses would not be able to keep up.
MONEY AS DEBT
Inflationists would argue that Central
Posted by brucewayne on 14th of Dec 2009 at 10:34 pm
Inflationists would argue that Central Banks can instantly solve that problem by adding zeros to a computer under a fiat money system. Since all it takes is keyboard strokes vs. unleashing painful losses for the fat cats on Wall Street all the way down to the average Joe I think overall we will experience a great inflation, but periodically there will be strong bouts of deflation. The government can also hand out money through tax credits and other gimmicks such as cash for clunkers so it isn't just up to banks to re-inflate the money supply. Overall I think we will cycle back and forth between inflation and deflation until a large number of people lose faith in fiat monetary systems and then hopefully we will get smart and add the store of value property back to whatever we use as money next.