Creating Inflation – or “Why the US government will continue Deficit Spending”
www.berninger.de Thе US Government hаѕ tο continue defizit spending, οr otherwise іt wіll cause “Hyperdeflation”. Thе generation οf Inflation mυѕt bе thе objective οf thе government іn order tο avert thе complete stalling οf thе economy.
The only way to stop deficit spending is to take away Congress’s power to borrow cash on the credit of the United States, (the people), by abolishing Clause 2, Section 8, of the US Constitution. It is because of this power of Congress that we have the corruption, debt burdens, and taxes today.
I find that the book Atlas Shrugged makes a excellent case of why what is going to happen is going to happen. There are also answers for what to do.
If inflation and printing cash were the answer, then Mexico and Argentina would be the financial titans of the world.
There is no way out, you gotta have a STRONG currency that attracts investment on the macro level and brings home the goods on the family level. Only deflation strengthtens cash. It doesn’t matter how many businesses will go bankrupt – some will survive. Its called capitalism. No country ever made a career with a week currency – financially or otherwise.
I reckon the real reason for the government ruining the dollar is because Plates is sitting on over 1.2 trillion dollars cash, and the only way we can deal a blow to Plates if we ruin “their” core currency – which, unfortunately, is also our currency. Thats why the Chinese are so mad at America – they are between a rock and a hard house – either watch America destroying the dollar, or do it yourself by tiresome to dump it.
I completely don’t agree with that deflation is terrible – when cash is scarce, it becomes very strong, because businesses are vying for your cash, and they decrease prices (hence the deflation).
And not just that, but foreign investors are flocking to invest in the strong currency.
Remember that back in early 90-s, when we had deflation, the dollar was king. Even in 2001, 78 US cents traded for 1 Euro (!) as a upshot of deflation strengthening the dollar for 10 years straight.
/watch?v=5r2-5uOlZ1U
In conclusion to my commenting, that is just as terrible for the U.S. Government to keep spending. Peter Schiff warn us about this, as he is running for Senate 2010 elections (from his inflation perspective):
Nice explaination, jberni1. But, and in analogy, if I continue to keep spending with my debit card that is tied with my checking account (like export a $21 Million painting, $1000 stereo system, and only having $0 in the account to start with), I place myself into bankruptcy, up to the point also of being on examination and go to jail for what I did.
Overall, the more you tried to spend, the more you will place your self into insolvency. The government is litterally doing of my personal analogy.
I by no means heard that before. That they want inflation to ‘make’ your cash lose valve just so you need to work to make cash flow. Excellent point.
Splendid vid mate. I like cofee.
Thankfulness for the info…..very fascinating…..i’ll be holding on to my Gold and Silver as this mess plays out worldwide.
Merry Xmas from Australia.
Most of the gold is in private hands in India. The country has accumulated gold throughout history.
2 times in history it was accumulated and twice it was robbed. Once by muslim invaders who robbed all the gold and killed people. And once by the British who did the same.
This is the 3rd time that India finds itself with a lot of gold in private hands. Central banks around the world are wondering how to get people to trade their gold for worthless paper like gold ETF, currency..etc.
I read everyplace that the all the people in the world own more Gold privately that all the central banks place together.
Can anyone verify this?
It’s doable. Sounded to me like he was saying the deficit spending was de rigueur & saving our economy.
I see the point he is making on tiresome to avoid deflation.
I reckon you may be reading too much into this single video. I don’t reckon he was saying that inflation or deflation is terrible or excellent. He’s just explaining what he believes will happen, regardless of what he believes is the best policy.
thirdcoastguy: LOL…your splendid! But really, I reckon we would have to inflate Bernake’s moral compass. No use in making him smarter if he will only use persons brain cells to figure new ways to ruin us & enrich himself & his cronies.
Sepero1: I doubt he can. Inflation causes business not to hire. His point was because of rising prices people will take any wage offered & not sit around waiting for a better paying job because they are desperate.
But if business expenses are up & the gov continues to make it more & more high-priced to have employees via taxes & regulations, there won’t be any hiring no matter at what pay grade.
But wouldn’t hyper-inflation be every bit as terrible or worse than hyper-deflation? Just look at Zimbabwe, Germany & Brazil ending up with worthless currency.
Are there any examples of countries whose entire economies were completely ruined with hyper-deflation?
Sorry, but I just do not trust that the Federal government manipulating the economy is going to make things better. Are we supposed to believe that the highest deficits in the history of mankind are going to save us?
There are various types of inflation. Inflation can simply mean an increase in the cash supply, which means more $ is available for lending, export and labor.
Price inflation of course is when the cost of goods goes up. It always (?) follows the inflation I describe above because with more cash chasing the same amount of goods, the higher the price becomes for persons goods!
The Federal Govt in the USA is going to collapse before they idiots could ever get their shit together … I reckon the Russian Professor who predicted the collapse and following civil war in America is more plausable.
Most Americans are tired of the democraps and rapeublicans who have been screwing us.
The govt will continue to spend because the people taking the free cash would riot tomorrow if the free cash quit coming to them.
In this video, you state that inflation makes jobs. Could you tell me me, or link me to information as to why this is so? The only reason I can currently reckon of, is because it makes the dollar value less, therefore lowering the right price/cost of minimum wage employees.
their wealth run out of real wealth to yield. As this point, they are unable to answer the new emitted wealth, no matter their “excellent” will. The ponzi scheme is over.
The Ponzi scheme cant go forever.
Currently, the US and Europe go deeper and deeper in debt, use the cash collected through debt to buy real wealth (mostly goods and industrial oriented assets) and repay the wellbeing on debt with paper cash.
So far so excellent.
Two limits: countries yielding their real wealth against cash bought through debt reject the deal. Unlikely as the US has peepered the world with military bases.
The other limit is the compulsory one: countries yielding
Id like hyper deflation, cheap houses! bring them on
Quick, someone go deflate Obama’s ego and inflate Bernake’s brain cell count. Don’t worry about Geithner, he’s hiding in the empty vaults at the U.S. Treasury.