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Breaking: UBS Issues Hyperinflation Warning For U.S.A. & U.K.

 
Saddletramp (OP)
We Don't Rent Pigs...

User ID: 285665
United States
07/18/2012 11:31 PM

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Re: Breaking: UBS Issues Hyperinflation Warning For U.S.A. & U.K.
UBS Issues A Hyperinflation Warning For The U.S.A. and U.K...

From Zerohedge.com

From UBS: "We think that a creditor nation is less at risk of hyperinflation than a debtor nation, as a debtor nation relies not only on the confidence of domestic creditors, but also of foreign creditors. We therefore think that the hyperinflation risk to global investors is largest in the US and the UK.

Read More: [link to www.zerohedge.com]

pennywise
 Quoting: Saddletramp


This is far from true. It has to be remembered that the creditor nations all submitted to American economic dominion and were built up from the ground up with American venture capital after WW2 and the Cold War. American investment in these countries is massive and the remittances are gargantuan. You don't see them but that is not to say that they aren't there.

Which is why I consistently maintain, America is a long way away from collapsing as is the US dollar. It also illustrates why the US in essence is the UN.

I know it all sounds incredible but remember America economically reshaped the world and despite appearances, is the pivot across which global capitalism is balanced.
 Quoting: Marxist


Be careful with normalcy bias, the thought that since everything has been a certain way in my mere blip of a lifetime, it must always be that way, is a cancer. Science and History tell us this is simply not true, if anything, change is the only constant on this planet...

And just because we rebuilt the world 65 years ago doesn't mean after all those years of U.S. Treasury Purchases at manipulated rates, and Preferential Trade Deals for the U.S., and our companies, that the world doesn't feel like we've been paid back and then some for that debt...

Last Edited by Saddletramp on 07/18/2012 11:34 PM
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."
Marxist

User ID: 1162013
New Zealand
07/18/2012 11:49 PM
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Re: Breaking: UBS Issues Hyperinflation Warning For U.S.A. & U.K.
UBS Issues A Hyperinflation Warning For The U.S.A. and U.K...

From Zerohedge.com

From UBS: "We think that a creditor nation is less at risk of hyperinflation than a debtor nation, as a debtor nation relies not only on the confidence of domestic creditors, but also of foreign creditors. We therefore think that the hyperinflation risk to global investors is largest in the US and the UK.

Read More: [link to www.zerohedge.com]

pennywise
 Quoting: Saddletramp


This is far from true. It has to be remembered that the creditor nations all submitted to American economic dominion and were built up from the ground up with American venture capital after WW2 and the Cold War. American investment in these countries is massive and the remittances are gargantuan. You don't see them but that is not to say that they aren't there.

Which is why I consistently maintain, America is a long way away from collapsing as is the US dollar. It also illustrates why the US in essence is the UN.

I know it all sounds incredible but remember America economically reshaped the world and despite appearances, is the pivot across which global capitalism is balanced.
 Quoting: Marxist


Be careful with normalcy bias, the thought that since everything has been a certain way in my mere blip of a lifetime, it must always be that way, is a cancer. Science and History tell us this is simply not true, if anything, change is the only constant on this planet...

And just because we rebuilt the world 65 years ago doesn't mean after all those years of U.S. Treasury Purchases at manipulated rates, and Preferential Trade Deals for the U.S., and our companies, that the world doesn't feel like we've been paid back and then some for that debt...
 Quoting: Saddletramp


This has less to do with the rebuilding America led and more with the fact that America got her capital in on the ground floor right at the outset.

In plain old commercial terms, America has a headstart as an investor country. This is a similar advantage that Britain enjoys in her Commonwealth, which has been watered down somewhat since she entered the EU admittedly.

These things are often governed by basic business common sense. Of course, there are some who look for all sorts of sinister forces at play. There is nothing sinister about capitalism and capitalists. It just ain't sustainable in the long run. But to consider America a lame duck due to the unfolding economic crisis is to fail to realise that the American Cold War warriors who forged the post Cold War world were extremely astute and visionaries...I may not agree with their economic vision, but I salute them as wily tacticians.
Workers of the World, Unite. You have nothing to lose but your chains!
Anonymous Coward
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07/18/2012 11:55 PM
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Re: Breaking: UBS Issues Hyperinflation Warning For U.S.A. & U.K.
nothing cryptic about it. they just said the dollar is about to collapse
Anonymous Coward
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07/18/2012 11:56 PM
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Re: Breaking: UBS Issues Hyperinflation Warning For U.S.A. & U.K.
the uk has nothing to worry about they have 200 trillion in gold and silver
Saddletramp (OP)
We Don't Rent Pigs...

User ID: 285665
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07/18/2012 11:59 PM

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Re: Breaking: UBS Issues Hyperinflation Warning For U.S.A. & U.K.
UBS Issues A Hyperinflation Warning For The U.S.A. and U.K...

From Zerohedge.com

From UBS: "We think that a creditor nation is less at risk of hyperinflation than a debtor nation, as a debtor nation relies not only on the confidence of domestic creditors, but also of foreign creditors. We therefore think that the hyperinflation risk to global investors is largest in the US and the UK.

Read More: [link to www.zerohedge.com]

pennywise
 Quoting: Saddletramp


This is far from true. It has to be remembered that the creditor nations all submitted to American economic dominion and were built up from the ground up with American venture capital after WW2 and the Cold War. American investment in these countries is massive and the remittances are gargantuan. You don't see them but that is not to say that they aren't there.

Which is why I consistently maintain, America is a long way away from collapsing as is the US dollar. It also illustrates why the US in essence is the UN.

I know it all sounds incredible but remember America economically reshaped the world and despite appearances, is the pivot across which global capitalism is balanced.
 Quoting: Marxist


Be careful with normalcy bias, the thought that since everything has been a certain way in my mere blip of a lifetime, it must always be that way, is a cancer. Science and History tell us this is simply not true, if anything, change is the only constant on this planet...

And just because we rebuilt the world 65 years ago doesn't mean after all those years of U.S. Treasury Purchases at manipulated rates, and Preferential Trade Deals for the U.S., and our companies, that the world doesn't feel like we've been paid back and then some for that debt...
 Quoting: Saddletramp


This has less to do with the rebuilding America led and more with the fact that America got her capital in on the ground floor right at the outset.

In plain old commercial terms, America has a headstart as an investor country. This is a similar advantage that Britain enjoys in her Commonwealth, which has been watered down somewhat since she entered the EU admittedly.

These things are often governed by basic business common sense. Of course, there are some who look for all sorts of sinister forces at play. There is nothing sinister about capitalism and capitalists. It just ain't sustainable in the long run. But to consider America a lame duck due to the unfolding economic crisis is to fail to realise that the American Cold War warriors who forged the post Cold War world were extremely astute and visionaries...I may not agree with their economic vision, but I salute them as wily tacticians.
 Quoting: Marxist


Yes, but most of that type of investment came from American Companies and businessmen that have no real loyalty to the United States anymore, they are multi-national now-a-days, and would sink the United States in a hearbeat if they thought they could make a buck off of it.

And you are assuming that the leadership of the U.S. doesn't want the dying system sunk in favor of a new system, that has not yet been unveiled. If there is one country that stands firmly in the way of true globalism it's a sovereign United States of America and that pesky Constitution they have to work so hard to circumvent...

No, I would have bought into that argument you put forward in the economic hell of the 70's and early 80's, but not now...Like I said, Change is the only constant, and things have changed.

But one thing about it, I think we'll know who's right soon enough. Believe me, my business will suffer if I'm right, so from that standpoint, I hope I'm wrong, but I don't think I am...
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."
Marxist

User ID: 1162013
New Zealand
07/19/2012 12:16 AM
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Re: Breaking: UBS Issues Hyperinflation Warning For U.S.A. & U.K.
...


This is far from true. It has to be remembered that the creditor nations all submitted to American economic dominion and were built up from the ground up with American venture capital after WW2 and the Cold War. American investment in these countries is massive and the remittances are gargantuan. You don't see them but that is not to say that they aren't there.

Which is why I consistently maintain, America is a long way away from collapsing as is the US dollar. It also illustrates why the US in essence is the UN.

I know it all sounds incredible but remember America economically reshaped the world and despite appearances, is the pivot across which global capitalism is balanced.
 Quoting: Marxist


Be careful with normalcy bias, the thought that since everything has been a certain way in my mere blip of a lifetime, it must always be that way, is a cancer. Science and History tell us this is simply not true, if anything, change is the only constant on this planet...

And just because we rebuilt the world 65 years ago doesn't mean after all those years of U.S. Treasury Purchases at manipulated rates, and Preferential Trade Deals for the U.S., and our companies, that the world doesn't feel like we've been paid back and then some for that debt...
 Quoting: Saddletramp


This has less to do with the rebuilding America led and more with the fact that America got her capital in on the ground floor right at the outset.

In plain old commercial terms, America has a headstart as an investor country. This is a similar advantage that Britain enjoys in her Commonwealth, which has been watered down somewhat since she entered the EU admittedly.

These things are often governed by basic business common sense. Of course, there are some who look for all sorts of sinister forces at play. There is nothing sinister about capitalism and capitalists. It just ain't sustainable in the long run. But to consider America a lame duck due to the unfolding economic crisis is to fail to realise that the American Cold War warriors who forged the post Cold War world were extremely astute and visionaries...I may not agree with their economic vision, but I salute them as wily tacticians.
 Quoting: Marxist


Yes, but most of that type of investment came from American Companies and businessmen that have no real loyalty to the United States anymore, they are multi-national now-a-days, and would sink the United States in a hearbeat if they thought they could make a buck off of it.

And you are assuming that the leadership of the U.S. doesn't want the dying system sunk in favor of a new system, that has not yet been unveiled. If there is one country that stands firmly in the way of true globalism it's a sovereign United States of America and that pesky Constitution they have to work so hard to circumvent...

No, I would have bought into that argument you put forward in the economic hell of the 70's and early 80's, but not now...Like I said, Change is the only constant, and things have changed.

But one thing about it, I think we'll know who's right soon enough. Believe me, my business will suffer if I'm right, so from that standpoint, I hope I'm wrong, but I don't think I am...
 Quoting: Saddletramp


Don't just look at what American businessmen may or may not be up to with their remittances, look at where the Chinese and Russian wealthy and politicos squirrel away their wealth as well. Tax havens yes. But a substantial segment of that wealth is in fact in the US.

Why? Because the US is about as stable, investment wise as one can find in this world. Switzerland used to enjoy that reputation in a previous era due to its famed neutrality and geographical location. America has since assumed that role and enjoys a degree of recognition due to its location, its central role as leading home of capital (along with London) and of course, it's military.

Remember my words when we are still here in two years time, Assad will have gone and the Middle East will have been moulded in the image America wants (notwithstanding Russia and China.)

Don't underestimate the American leadership. You don't mould a planet in your image by being stupid or careless. Ideologically incorrect perhaps, stupid, no.
Workers of the World, Unite. You have nothing to lose but your chains!
Anonymous Coward
User ID: 4655644
United States
07/19/2012 09:10 AM
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Re: Breaking: UBS Issues Hyperinflation Warning For U.S.A. & U.K.
Here a good example of the extents that are being gone to to avoid the inevitable collapse:

[link to economywatch.msnbc.msn.com]

There may be dope but I don't see any Hope.
Anonymous Coward
User ID: 18765272
United States
07/19/2012 07:33 PM
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Re: Breaking: UBS Issues Hyperinflation Warning For U.S.A. & U.K.
A fiat money system require's perpetual inflation to function, or a continual debasement of the currency...

However, a fiat currency is not a perpetual motion machine, and I believe the coming "Hyperinflation" will consist of a massive and hard devaluation of the currency (inflation), all while the equity markets are carshing (deflation)...

The bane of fiat currency is deflation, and when the rate of inflation is added to the equation, the equity markets have "deflated" considerably over the last eleven years...and even though we've had historically low interest rates for the last four years...

If you want to see what's about to happen to us look to the collapse of the U.S.S.R. or Argentina...

Hey, we've had a good run...

norespect
 Quoting: Saddletramp


UBS knows hypertards will believe what ever they tell them, hence the publishing of this rubbish.
The U.S.S.R. didn't have the reserve currency or a society offering the freedom the US offers today. The US is a core piece of the global economy Argentina Zimbabwe etc... are all fringe economies. Sorry to disappoint but the USD will not be hyperinflating any time soon!
 Quoting: Anonymous Coward 18765272


I don't usually argue my economic points, you are free to agree or disagree as you see fit, it's no skin off of my back, but the problem the U.S.A. is currently facing is not just wisked away by fiat money anymore,
 Quoting: Saddletramp

Uh no $hit sherlock, this is precisely why hyperinflation will NOT happen. But if you want to believe in fairy tails be my guest. LOL!


let me tell you why...

1.) The U.S.A. is quickly losing reserve currency status, and petrodollar status around the world, meaning there is already a glut of federal reserve notes out there in foreign hands that the fed is trying to soak up...why isn't all this extra liquidity already inflating the market, assuming quantative easing is all it takes?
 Quoting: Saddletramp


Lie #1 "glut of FRN's"
Sorry but you've got it back asswards. The "glut" is in treasury bonds not FRN's. The FED is soaking up T-bonds otherwise the market would become illiquid due to lack of FRN's to purchase said bonds. This illiquidity is what will stop any excessive inflation in it's tracks and will be dialed in as the FED sees fit.

2.) The Repeal of Glass-Stegell has seriously interrupted the flow of cash in the U.S.. Banks are no longer loaning money to small start ups, why should they, it's risky and they don't have to take those risks anymore, they can play the equity and derivative markets and get a better return much faster. So Trickle-Down cash through the banking system to main street has been permenently disabled!
 Quoting: Saddletramp


#2 And just how are any of these things supposed to spark hyperinflation again? Do you understand how to apply basic logic and connect dots? These facts are bullish for the USD and cash. Do you understand how logic/basic math works? Do you know what -1-1 = ?
(hint it's not +3)

3.) Interest Rates have been too low for too long. This is leading to severe and fundemental problems in the markets, banks no longer even really want cash deposits (that's why most are incredibly short on cash), they can borrow the money on the market cheaper than they can pay depositors, The bank can't make a very good return on loans, so the natural response is to leverage to the hilt and play the market...and why not, you're already too big to fail, so if you make a bad play, the taxpayer and his wallet are always available to you...
 Quoting: Saddletramp


Are you really foolish enough to believe this is a sustainable situation? Do you really think the taxpayers will have enough money to pay an unpayable debt and then aftwards go on a hypercrazey spending spree to spark the hyperinflation you speak of?

4.) The Fed's Toolbox is empty, they can't lower interest rates anymore, and a raise in rates would be instant deflation, the low rates are effecting every asset class and investor class in the world right now, so all they have is Quantative Easing, but in an essentially chroniclly negative interest rate environment, "printing money" even on a computer, offers a continually diminishing rate of return. Ask Europe, where the 1.25 Trillion in Bailouts only bought them six months or so. Leverage continues to increase because it's the natural response to cheap money, but all the leverage is occuring in either Sovereigns or Banks right now, and they are already overleveraged, there is no trickle down to small business'.
 Quoting: Saddletramp


Hmm so you think the diminishing effect of money printing will yield hyperinflation? LOL!!!!

So in summary, If you're the Fed you can lower rates which are already so low they are killing fixed income people, the middle class, and a variety of asset classes including previously owned homes which are the main source of Net-Worth for the middle-class, and the markets will respond negatively (see Europe lowering rates a couple of weeks ago) and you won't even have solved any of your problems and nothing will have changed.
 Quoting: Saddletramp

What makes you think the FED can solve your problems for you? They can minimise the effects of your stupidity, they can't prevent the consequences.

You can raise rates and the markets will immediately enter a deflationary spiral.
 Quoting: Saddletramp

No $hit they don't even need to raise rates to accomplish this. Just slowing the RATE of decrease of rates is enough.

Or, you can print money on your computer to funnel through your large banks even while you're trying to soak up
 Quoting: Saddletramp

With you on this one till here.

money from foreign sources that now longer need it
 Quoting: Saddletramp

Let me correct this piece. Should say:
"DEBT from foreign sources that now desperately need MONEY"


because your currency is losing Reserve Status,
 Quoting: Saddletramp

This isn't happening until after a deflationary liquidation. Sorry your dreams of hyperinflation will have to wait.


but then you risk a crash in confidence, currency wars, and trade wars leading to loss of investment from foreign sources and hyperinflation/deflation carsh combination...so take your choice, because there are no more tools in the tool box my friend!
 Quoting: Saddletramp


Not going to attempt to decode the above hypertardic rambling, as it has no basis in the world we call reality.

Or you can choose to think I'm crazy and keep burying your head in the sand...like I said, no skin off of my back.
 Quoting: Saddletramp


I don't have to think you're crazy, you've provided enough evidence to prove that for me. Suppose it must look like everyone's got there head in the sand when you've got yours up your a$$.

Keep that skin on your back! Don't want to see you graduate the that next level of crazy! I'll advise you to take up rock collecting like many of the other hypertards have on GLP. Stacking shiny rocks seems to keep the tards confused and happy. I'm sure the hyperfairy will pay you a visit one day so you can live your dream and cash your rocks in for wheel barrels full of cash!!! Yea I'll bet that's exactly what the bankers have planed LOL!!!!
Saddletramp (OP)
We Don't Rent Pigs...

User ID: 285665
United States
07/19/2012 09:17 PM

Report Abusive Post
Report Copyright Violation
Re: Breaking: UBS Issues Hyperinflation Warning For U.S.A. & U.K.
A fiat money system require's perpetual inflation to function, or a continual debasement of the currency...

However, a fiat currency is not a perpetual motion machine, and I believe the coming "Hyperinflation" will consist of a massive and hard devaluation of the currency (inflation), all while the equity markets are carshing (deflation)...

The bane of fiat currency is deflation, and when the rate of inflation is added to the equation, the equity markets have "deflated" considerably over the last eleven years...and even though we've had historically low interest rates for the last four years...

If you want to see what's about to happen to us look to the collapse of the U.S.S.R. or Argentina...

Hey, we've had a good run...

norespect
 Quoting: Saddletramp


UBS knows hypertards will believe what ever they tell them, hence the publishing of this rubbish.
The U.S.S.R. didn't have the reserve currency or a society offering the freedom the US offers today. The US is a core piece of the global economy Argentina Zimbabwe etc... are all fringe economies. Sorry to disappoint but the USD will not be hyperinflating any time soon!
 Quoting: Anonymous Coward 18765272


I don't usually argue my economic points, you are free to agree or disagree as you see fit, it's no skin off of my back, but the problem the U.S.A. is currently facing is not just wisked away by fiat money anymore,
 Quoting: Saddletramp

Uh no $hit sherlock, this is precisely why hyperinflation will NOT happen. But if you want to believe in fairy tails be my guest. LOL!


let me tell you why...

1.) The U.S.A. is quickly losing reserve currency status, and petrodollar status around the world, meaning there is already a glut of federal reserve notes out there in foreign hands that the fed is trying to soak up...why isn't all this extra liquidity already inflating the market, assuming quantative easing is all it takes?
 Quoting: Saddletramp


Lie #1 "glut of FRN's"
Sorry but you've got it back asswards. The "glut" is in treasury bonds not FRN's. The FED is soaking up T-bonds otherwise the market would become illiquid due to lack of FRN's to purchase said bonds. This illiquidity is what will stop any excessive inflation in it's tracks and will be dialed in as the FED sees fit.

2.) The Repeal of Glass-Stegell has seriously interrupted the flow of cash in the U.S.. Banks are no longer loaning money to small start ups, why should they, it's risky and they don't have to take those risks anymore, they can play the equity and derivative markets and get a better return much faster. So Trickle-Down cash through the banking system to main street has been permenently disabled!
 Quoting: Saddletramp


#2 And just how are any of these things supposed to spark hyperinflation again? Do you understand how to apply basic logic and connect dots? These facts are bullish for the USD and cash. Do you understand how logic/basic math works? Do you know what -1-1 = ?
(hint it's not +3)

3.) Interest Rates have been too low for too long. This is leading to severe and fundemental problems in the markets, banks no longer even really want cash deposits (that's why most are incredibly short on cash), they can borrow the money on the market cheaper than they can pay depositors, The bank can't make a very good return on loans, so the natural response is to leverage to the hilt and play the market...and why not, you're already too big to fail, so if you make a bad play, the taxpayer and his wallet are always available to you...
 Quoting: Saddletramp


Are you really foolish enough to believe this is a sustainable situation? Do you really think the taxpayers will have enough money to pay an unpayable debt and then aftwards go on a hypercrazey spending spree to spark the hyperinflation you speak of?

4.) The Fed's Toolbox is empty, they can't lower interest rates anymore, and a raise in rates would be instant deflation, the low rates are effecting every asset class and investor class in the world right now, so all they have is Quantative Easing, but in an essentially chroniclly negative interest rate environment, "printing money" even on a computer, offers a continually diminishing rate of return. Ask Europe, where the 1.25 Trillion in Bailouts only bought them six months or so. Leverage continues to increase because it's the natural response to cheap money, but all the leverage is occuring in either Sovereigns or Banks right now, and they are already overleveraged, there is no trickle down to small business'.
 Quoting: Saddletramp


Hmm so you think the diminishing effect of money printing will yield hyperinflation? LOL!!!!

So in summary, If you're the Fed you can lower rates which are already so low they are killing fixed income people, the middle class, and a variety of asset classes including previously owned homes which are the main source of Net-Worth for the middle-class, and the markets will respond negatively (see Europe lowering rates a couple of weeks ago) and you won't even have solved any of your problems and nothing will have changed.
 Quoting: Saddletramp

What makes you think the FED can solve your problems for you? They can minimise the effects of your stupidity, they can't prevent the consequences.

You can raise rates and the markets will immediately enter a deflationary spiral.
 Quoting: Saddletramp

No $hit they don't even need to raise rates to accomplish this. Just slowing the RATE of decrease of rates is enough.

Or, you can print money on your computer to funnel through your large banks even while you're trying to soak up
 Quoting: Saddletramp

With you on this one till here.

money from foreign sources that now longer need it
 Quoting: Saddletramp

Let me correct this piece. Should say:
"DEBT from foreign sources that now desperately need MONEY"


because your currency is losing Reserve Status,
 Quoting: Saddletramp

This isn't happening until after a deflationary liquidation. Sorry your dreams of hyperinflation will have to wait.


but then you risk a crash in confidence, currency wars, and trade wars leading to loss of investment from foreign sources and hyperinflation/deflation carsh combination...so take your choice, because there are no more tools in the tool box my friend!
 Quoting: Saddletramp


Not going to attempt to decode the above hypertardic rambling, as it has no basis in the world we call reality.

Or you can choose to think I'm crazy and keep burying your head in the sand...like I said, no skin off of my back.
 Quoting: Saddletramp


I don't have to think you're crazy, you've provided enough evidence to prove that for me. Suppose it must look like everyone's got there head in the sand when you've got yours up your a$$.

Keep that skin on your back! Don't want to see you graduate the that next level of crazy! I'll advise you to take up rock collecting like many of the other hypertards have on GLP. Stacking shiny rocks seems to keep the tards confused and happy. I'm sure the hyperfairy will pay you a visit one day so you can live your dream and cash your rocks in for wheel barrels full of cash!!! Yea I'll bet that's exactly what the bankers have planed LOL!!!!
 Quoting: Anonymous Coward 18765272


You either really don't understand basic economics at all, or you're choosing to parse my points with meanings that were never placed in them in the first place, either way, you're arguments have little to no value. Under your reasoning we should never have had the carsh of 2008 and the present day stagnation we are struggling under, so my point in all this has already been made by history. In fact if you study the great depression, you will find present day economic conditions are following the timeline of the depression almost to the month!

There are several books out there that will help to educate you and cure your Kensyian mental illness...

If you need some suggestions, please just let me know...
"And how can a man die better than facing fearful odds, for the ashes of his fathers, and the temples of his Gods..." ~ Horatius

"Because he told the truth, and once you've heard the truth, everything else is just cheap whiskey..."
Anonymous Coward
User ID: 18765272
United States
07/19/2012 09:49 PM
Report Abusive Post
Report Copyright Violation
Re: Breaking: UBS Issues Hyperinflation Warning For U.S.A. & U.K.
...


UBS knows hypertards will believe what ever they tell them, hence the publishing of this rubbish.
The U.S.S.R. didn't have the reserve currency or a society offering the freedom the US offers today. The US is a core piece of the global economy Argentina Zimbabwe etc... are all fringe economies. Sorry to disappoint but the USD will not be hyperinflating any time soon!
 Quoting: Anonymous Coward 18765272


I don't usually argue my economic points, you are free to agree or disagree as you see fit, it's no skin off of my back, but the problem the U.S.A. is currently facing is not just wisked away by fiat money anymore,
 Quoting: Saddletramp

Uh no $hit sherlock, this is precisely why hyperinflation will NOT happen. But if you want to believe in fairy tails be my guest. LOL!


let me tell you why...

1.) The U.S.A. is quickly losing reserve currency status, and petrodollar status around the world, meaning there is already a glut of federal reserve notes out there in foreign hands that the fed is trying to soak up...why isn't all this extra liquidity already inflating the market, assuming quantative easing is all it takes?
 Quoting: Saddletramp


Lie #1 "glut of FRN's"
Sorry but you've got it back asswards. The "glut" is in treasury bonds not FRN's. The FED is soaking up T-bonds otherwise the market would become illiquid due to lack of FRN's to purchase said bonds. This illiquidity is what will stop any excessive inflation in it's tracks and will be dialed in as the FED sees fit.

2.) The Repeal of Glass-Stegell has seriously interrupted the flow of cash in the U.S.. Banks are no longer loaning money to small start ups, why should they, it's risky and they don't have to take those risks anymore, they can play the equity and derivative markets and get a better return much faster. So Trickle-Down cash through the banking system to main street has been permenently disabled!
 Quoting: Saddletramp


#2 And just how are any of these things supposed to spark hyperinflation again? Do you understand how to apply basic logic and connect dots? These facts are bullish for the USD and cash. Do you understand how logic/basic math works? Do you know what -1-1 = ?
(hint it's not +3)

3.) Interest Rates have been too low for too long. This is leading to severe and fundemental problems in the markets, banks no longer even really want cash deposits (that's why most are incredibly short on cash), they can borrow the money on the market cheaper than they can pay depositors, The bank can't make a very good return on loans, so the natural response is to leverage to the hilt and play the market...and why not, you're already too big to fail, so if you make a bad play, the taxpayer and his wallet are always available to you...
 Quoting: Saddletramp


Are you really foolish enough to believe this is a sustainable situation? Do you really think the taxpayers will have enough money to pay an unpayable debt and then aftwards go on a hypercrazey spending spree to spark the hyperinflation you speak of?

4.) The Fed's Toolbox is empty, they can't lower interest rates anymore, and a raise in rates would be instant deflation, the low rates are effecting every asset class and investor class in the world right now, so all they have is Quantative Easing, but in an essentially chroniclly negative interest rate environment, "printing money" even on a computer, offers a continually diminishing rate of return. Ask Europe, where the 1.25 Trillion in Bailouts only bought them six months or so. Leverage continues to increase because it's the natural response to cheap money, but all the leverage is occuring in either Sovereigns or Banks right now, and they are already overleveraged, there is no trickle down to small business'.
 Quoting: Saddletramp


Hmm so you think the diminishing effect of money printing will yield hyperinflation? LOL!!!!

So in summary, If you're the Fed you can lower rates which are already so low they are killing fixed income people, the middle class, and a variety of asset classes including previously owned homes which are the main source of Net-Worth for the middle-class, and the markets will respond negatively (see Europe lowering rates a couple of weeks ago) and you won't even have solved any of your problems and nothing will have changed.
 Quoting: Saddletramp

What makes you think the FED can solve your problems for you? They can minimise the effects of your stupidity, they can't prevent the consequences.

You can raise rates and the markets will immediately enter a deflationary spiral.
 Quoting: Saddletramp

No $hit they don't even need to raise rates to accomplish this. Just slowing the RATE of decrease of rates is enough.

Or, you can print money on your computer to funnel through your large banks even while you're trying to soak up
 Quoting: Saddletramp

With you on this one till here.

money from foreign sources that now longer need it
 Quoting: Saddletramp

Let me correct this piece. Should say:
"DEBT from foreign sources that now desperately need MONEY"


because your currency is losing Reserve Status,
 Quoting: Saddletramp

This isn't happening until after a deflationary liquidation. Sorry your dreams of hyperinflation will have to wait.


but then you risk a crash in confidence, currency wars, and trade wars leading to loss of investment from foreign sources and hyperinflation/deflation carsh combination...so take your choice, because there are no more tools in the tool box my friend!
 Quoting: Saddletramp


Not going to attempt to decode the above hypertardic rambling, as it has no basis in the world we call reality.

Or you can choose to think I'm crazy and keep burying your head in the sand...like I said, no skin off of my back.
 Quoting: Saddletramp


I don't have to think you're crazy, you've provided enough evidence to prove that for me. Suppose it must look like everyone's got there head in the sand when you've got yours up your a$$.

Keep that skin on your back! Don't want to see you graduate the that next level of crazy! I'll advise you to take up rock collecting like many of the other hypertards have on GLP. Stacking shiny rocks seems to keep the tards confused and happy. I'm sure the hyperfairy will pay you a visit one day so you can live your dream and cash your rocks in for wheel barrels full of cash!!! Yea I'll bet that's exactly what the bankers have planed LOL!!!!
 Quoting: Anonymous Coward 18765272


You either really don't understand basic economics at all, or you're choosing to parse my points with meanings that were never placed in them in the first place,
 Quoting: Saddletramp


Show exactly where I fail to understand economics. I pointed out several reasons the US will not hyperinflate any time soon. You've failed to provide even one good reason hyperinflation is eminent. You've got nothing LOL!

either way, you're arguments have little to no value. Under your reasoning we should never have had the carsh of 2008
 Quoting: Saddletramp

OMFG 1rof1

No moron I'm saying the 2008 Crash was unaviodable and will be repeated again in a much larger form.
I suppose you think the 2008 crash was due to hyperinflation LOL!!!!

and the present day stagnation we are struggling under, so my point in all this has already been made by history. In fact if you study the great depression, you will find present day economic conditions are following the timeline of the depression almost to the month!
 Quoting: Saddletramp


Wow you really are dull aren't you. Do you understand what happened in the great depression? Do you know what happened to money? Do you know how much bigger this current crisis is than the great depression (guessing no as you seem to think it will follow the same path, which is comical in itself as you think hyperinflation is coming)

There are several books out there that will help to educate you and cure your Kensyian mental illness...

If you need some suggestions, please just let me know...
 Quoting: Saddletramp


What exactly makes you think I'm a believer in Kensyian economics. There you go again making up irrelevant stuff again that isn't even true.

You appear to have no grasp of not only the basics of economics, but also basic logic and math. I suggest you gain some level of competency in the former two before attempting to discuss this subject again.

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