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Old 02-13-2013, 04:31 PM   #39
KevinNYC
Toronto Mayor Rob Ford
 
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Default Re: Jeff Berwick -Get Far Away From The U.S... Collapse Will Be Messy

Quote:
Originally Posted by DCL
you don't have to look at the comparison as if they were exactly equal in quantifiable terms. you seem to close off every analysis when you see zimbabwe's inflation is at 500 or 1000% while the US is nowhere close to that. they're obvious not the same in those terms, but the theory of money destruction is applicable to both.

if you understand the impact of reckless money printing, which is what the us is doing now, and how that drives inflation, you will see what the us government doing is not that dissimilar from the zimbabwe government, except zimbabwe was a far extreme case.

the united states does not and will not reach ridiculous 1000% inflation rates, but just a relative hyperinflation of 20% is enough to cripple a lot of folks.

20% is not hyperinflation. Yes, I agree that will not be good. What the US is doing is absolutely dissimiliar from the zimbabwean government. Of course, we are not near 20% inflation in the US and we never have been near 20% in my lifetime.

You are really comparing Texas to Jupiter in your example. I think you need to understand the difference between what the US has done in the past 5 years and truly "reckless" money printing. For that you need to understand what the "zero lower bound" is and how the US has been near that for 5 years, which is similiar to the situation Japan has found itself after its real estate bubble. I don't know enough to explain the zero lower bound easily.
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