Originally posted by Rockpuck
I am a smart guy. I like to think anyways lol. And I have no problem admitting I am just not understanding the actual "implications" ..
You are a smart guy and I always enjoy your posts!
We have a massive influx of "money" put onto the banks books.
But to actually SEE inflation, the people need the money, not the banks. Or to see deflation the money in circulation needs to be cut..
All these funds on the banks books, made up, borrowed or what have you.. what is the DIRECT effect on US?
I touched on this a few posts up. Yes, for the inflation to actually happen, the money has to be, well, monetized. As long as it sits on the banks'
books, it's not monetized. It has to be out in the wild, in the economy, being spent. This is why right now
the meteoric increase isn't a
But as soon as that cache is actually used for anything, it enters the wild. It can be used to pay salary, pay dividends, pay interest, build new
bank branches, buy new artwork for the lobby, go on Bigfoot hunting trips...as soon as it's used, it becomes monetized. That's when it becomes
You have to question how long that cache will sit there. Forever? If that's the case then we're fine. Eventually, though, it will be used in some
capacity. It has to be. It can't sit there for eternity.
And what is the time frame to see the "trickle down" of effect from the massive influx.
No real way to tell, unfortunately. Maybe a year. Maybe ten years. It depends on how long the banks sit on it.
Typically trillions pumped into the markets would crash the currency.. but if every major market does it at the same rate we do, and every
currency devalues at the same rate, or nearly, could it void out the effects of Hyper inflation?
Well, not really. The amount of coordination required to get every major market to crank out an equal amount of currency is mind-numbing. Why would
Japan, for example, want to inflate its Yen if they know a devalued U$ would increase their general power in the world?
Also, if every major currency hyperinflated, it would still be hyperinflation. It would still cost a U$1M or ¥942k or €1.26M to buy a loaf of
It would just be coordinated hyperinflation and the only industry that would make out well would be wheelbarrow manufacturers.