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Old 02-13-2013, 04:45 PM   #40
DCL
NBA rookie of the year
 
Join Date: Jun 2006
Posts: 6,352
Default Re: Jeff Berwick -Get Far Away From The U.S... Collapse Will Be Messy

Quote:
Originally Posted by KevinNYC
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.

for the US, 20% is hyperinflation, dude. you don't need to always use textbook definition. hyperinflation should just be defined as unhealthy inflation that's way too fast and hot to handle. 20% inflation in the united states is enough to do that.

and you shouldn't bet your house that you'd never see 20% inflation in the US in your lifetime. we've reached high levels of double digit inflation only several decades ago without the "reckless" money printing in place.

but you are only focusing on the scale of operations, hence, your texas and jupiter comment. but printing more money than what the economy can handle is reckless money printing. with QE-infinity in the hands of the fed, they're playing a dangerous game. no, it won't reach levels of germany or zimbabwe, you don't need to get hyped out over those comparisons, but when you keep on printing money like there's no tomorrow, inflation of unmanageable levels is inevitable.
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