Could the Weimar Hyperinflation Happen Again in America?

This is a discussion on Could the Weimar Hyperinflation Happen Again in America? within the Economic & Fundamental Analysis forums, part of the Methods category; Originally Posted by Atilla Good many fundamental arguements have been put and I'm afraid I fail to understand the significance ...

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Old Feb 19, 2010, 1:38am   #414
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

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Originally Posted by Atilla View Post
Good many fundamental arguements have been put and I'm afraid I fail to understand the significance of value added or the benefits of US and UK being at the bottom of value added charts etc... The crux of the matter is both countries have budget financing issues today coupled with credibility to service debt.

Also, looking at the micro composition of exports imports mean very little as one has to look at the bottom line which is the net current account Balance of Payments. US has defecit in this area. When was the last time it had a surplus BoP?
Country Comparison :: Current account balance I was surprised to see the US right at the bottom of this list and China at the top.

There is a knee jerk response to defend the USA for some reason in all its acts and I feel as a common stance there is much talk with no credible policy for overcoming the challenges it is facing.

Just as you point out the removal of the gold standard in early seventies took a full decade + many more years to play out its impact on global economy I feel the ramifications of current policies will similarly be visible perhaps 2015-20 onwards.

Our mutual jester friend is about as dense as a plank piece of wood to expect inflation in under a year...

With respect to inflation / hyperinflation - I doubt the trillion dollars have been spent yet. No doubt they have been allocated to unaccounted secret Pentagon or NASA projects with some portion to the banks and smallest to industry. These dollars are yet to be spent with possibly some % success in project product delivery. I fail to see how the banks will repay this debt whilst they are still going under.

Similarly in the UK - on one hand they are all trying to raise capital to bolster their reserves whilst dishing out dollops of bonuses to their elite lazy do nothings. The system is so awash with money it has got to be the biggest heist of the Millenium as the mighty empire endures last spasm before giving up the ghost.

With a much reduced technology gap and no new World beating industry coupled with increasing global competition the US is facing a bleak outlook.

In general appetite for government debt is much reduced. Rates are going up and servicing debt will become much dearer in the future. Much more impending financial turmoil is due and I can't see the light out of this situation as yet.
Government debt is only one piece, and the least important. This is what gets lost.
US debt held by the public is seriously dwarfed by the various forms of private debt. I don't know what the comparable situation is in the UK, but I'm pretty sure it would be similar, because the laws of economic behavior don't change because of artificial political boundaries.
Also, the US and the UK are at the bottom of the list for how many hurdles you have to cross to begin a new business. Look again at the link I posted. That's a good thing, not a bad thing. Obviously, the easier it is to start a new business, the more will get started. The more started, the more will succeed. The more that succeed, the more original ideas make it into the marketplace. This is the long-term advantage the Anglo-American economies have.
The link where the US and the UK come out at or near the top is for manufacturing value-added. The UK is well behind Germany, so you guys do have some work to do. But it's hardly doomsday.
As for banker do-nothings, believe me, you have no idea. None at all. I have close contact with these folks as a result of my contacts, and it's truly, extraordinarily amazing how these people truly believe they're part of the private, entrepreneurial economy, when in fact they're nothing but government employees, and should be paid as such.
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Old Feb 19, 2010, 1:39am   #415
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

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Clean out your nostrils ... that's silver you can smell ... kilos of it.
funny im short..can i offer you some more sir?
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Old Feb 19, 2010, 1:42am   #416
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

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i have no idea, considering i dont know anything and no one takes me seriously. (apparently) and no that was out of the entire forum. not that i really care, but kinda makes you look a bit stupid no?
Lol ... I was born stupid, and I'll die stupid.
I have no problem with stupid.

You can tell that I spend my time with like-minded folks.
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Old Feb 19, 2010, 1:44am   #417
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

"Our mutual jester friend is about as dense as a plank piece of wood to expect inflation in under a year.."

i dont expect inflation in under a year, because it isnt coming.

the world will be in a de-leveraging deflationary cycle for years to come. why do you think the fed opens the flood gates of freshly preinted money? to try and stop this from happening..and if you think a trillion here or there can stop it..your a fool.
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Bullsh!t, Bearsh!t all smells the same to me!

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Old Feb 19, 2010, 1:45am   #418
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

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Lol ... I was born stupid, and I'll die stupid.
I have no problem with stupid.

You can tell that I spend my time with like-minded folks.
i can, your well at home on this forum.
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Bullsh!t, Bearsh!t all smells the same to me!

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Old Feb 19, 2010, 1:52am   #419
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

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Lol ... I was born stupid, and I'll die stupid.
I have no problem with stupid.

You can tell that I spend my time with like-minded folks.
I had a long run of exchanges with lille ol NR and 'I think' I lost . So I put him on my ignore list and silence is truly golden as they say.

Some things best to avoid and walk around - even if you can step on it. It tends to stick and that awful smell ends up following one around.

He also has a fetish about the Telegraph... I thought it was just with me but obviously he has taken a liking to you too. Never heard anyone with an OCD with the Telegraphs before but you get all kinds of freaks these days...

He is getting very near to being listed into my ignore list again...
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Old Feb 19, 2010, 1:53am   #420
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

hey if you dont want me to bash the telegraph, dont post links to it to back up your claims lol
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