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 N Rothschild you really have no idea of the fractional reserve system do you? money is not ...

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Old Feb 22, 2010, 9:36pm   #449
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

Quote:
Originally Posted by N Rothschild View Post
you really have no idea of the fractional reserve system do you? money is not a commodity..you cannot call something you create out of thin air a commodity, which you then have to pay interest on.

if you want me to explain the fractional reserve system i gladly will.
I do know how banks work.

Money is a commodity. In fact everything can be termed a commodity.

Water is a commodity. You can go upto a mountain and fill up a bottle and sell it as spring water. Water is so abundant in supply it can virtually be termed a free commodity.


The problem with economics is it is termed a normative science. It is not pure positive science where 1kg is the same one can mathematically determine That is everyone has an opinion not necessarily correct one.

Everyone listens to Soros but he is not always right. Just more right than wrong.

You think it through and if it makes sense to you then that's fine.

If you understand what you have written instead of telling me I don't understand the fractional reserve system can you please explain your assumptions and answer my contra-statements against them. That would be productive. It will show if you really understand what you believe in and if it stands up to scrutiny of an alternative perspective.
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Old Feb 22, 2010, 9:39pm   #450
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

they arnt assumptions. seriously read the pdf it might take the blinkers off. and i dont see any contra statements?

i lvoe how you are claiming you know how banks work...yet desupting what im saying (and what the fed says funilly enough) so err..you clearly...dont?

and soros has nothing to do with my explanation of the banking system, that was only in regards to the "super bubble"
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Old Feb 22, 2010, 9:41pm   #451
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

honestly, have a leaf threw it..i will wait. and while i wait i will ask this...very simple question.. (hopefully will switch the light bulb on)

There is 1 billion dollars in the banking system. Banks turn that 1 billion into an extra 900 million (its actually more) in NEW money by creating credit threw the frac reserve system.

Money in economy..1 billion, 900 million dollars (of credit at say..ooo 4%)

The money is then repaid, all 900 milion dolalrs of freshly printed frc server notes. meaning there is once again 1 billion dollars in the banking system. but hang on...you had to pay 4% interest did you? But that would mean there would be less money in the system than when you started...err that cant be right can it?
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Bullsh!t, Bearsh!t all smells the same to me!

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Old Feb 22, 2010, 9:43pm   #452
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

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honestly, have a leaf threw it..i will wait.
Can't open it. Getting some (9) error. I click on yes to ignor errors and still doesn't open.

Can you paste it on here please...
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Old Feb 22, 2010, 9:51pm   #453
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

there u go
Attached Files
File Type: pdf Modern_Money_Mechanics.pdf (2.50 MB, 53 views)
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"Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild

Bullsh!t, Bearsh!t all smells the same to me!

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Old Feb 22, 2010, 10:07pm   #454
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

lets tally up some debt figures here..

us national debt..13 tril give or take.

us mortgages (this data is HARD to find) closest ive come up with is about 10 trillion.

us consumer debt. 2 trillion dollars.

so thats 25 trillion dollars so far and its a HELL of alot more than that when you include corporate debts etc, forig debt in us dollars..the figre is gona be about 50 trillion i reckon. prolly more.

so 50 trillion.. + intrest.

m1 supply, 1.6 trillion $

wait that cant be right..

money isnt money, money is debt. it is stuff that is created out of thin air as DEBT.


you still think money is a comodity between savers and borrowers?

as i said earlier..the money in the system is not enough to cover the debt+interest. unless the cycle (which i have explained) continues rinsing those dollars to meet interest payments.

tell me im wrong again..it turns me on
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"Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild

Bullsh!t, Bearsh!t all smells the same to me!

"It is not cheap to develop automated systems , mine already cost over $1m. " oildaytrader

Last edited by N Rothschild; Feb 22, 2010 at 10:15pm.
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Old Feb 22, 2010, 10:24pm   #455
 
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Re: Could the Weimar Hyperinflation Happen Again in America?

Quote:
Originally Posted by N Rothschild View Post
lets tally up some debt figures here..

us national debt..13 tril give or take. National Assets???

us mortgages (this data is HARD to find) closest ive come up with is about 10 trillion. Value of houses

us consumer debt. 2 trillion dollars. Value of savings or deposits what ever.

so thats 25 trillion dollars so far and its a HELL of alot more than that when you include corporate debts etc, forig debt in us dollars..the figre is gona be about 50 trillion i reckon. prolly more.

so 50 trillion.. + intrest.

m3 money supply.. 10 trillion?

wait that cant be right..


you still think money is a comodity between savers and borrowers? Yes absolutely. It is a measure of value whether one is a saver or borrower it measures commodity value. Houses, books food whatever. As money is a commodity it also has value. That is why the dollar is falling in value. As a commodity the dollar is losing value.

as i said earlier..the money in the system is not enough to cover the debt+interest. unless the cycle (which i have explained) continues rinsing those dollars to meet interest payments.

tell me im wrong again..it turns me on
Ok I agree with you there but you are only looking at one side of the balance sheet.

What about the other side...

That difference between assets and liabilities is made up with loans - ie sale and purchase of treasury bills.

Books must always balance.

Issue is what happens when the books don't balance due to the crash as asset valuations no longer in proportion to monies loaned out. Government steps in and bails risky insititutions failed debts out with no corresponding output to balance the books.
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