We often discuss the disturbing monetary policies of today. The pandemic has escalated the habit of printing money out of thin air. From time to time the term “hyperinflation” comes up, as an early warning of what such policies can lead to.
By definition, a hyperinflation is an inflation rate of 50% or more per month.
My parents told me the horror stories of Germany in 1929, when cash practically became worthless. The middle class and the poor suffered greatly. The rich did ok, because their wealth was in tangible assets, such as land, factories, etc.This opened the door for a charismatic socialist, who promised the masses a better life. He later became a dictator who brought more misery to his country than the hyperinflation.
Checking the internet, I read that the worst hyperinflation happened in Hungary after WW2, when prices doubled every 15 hours!!!
Most people think that such things happen very rarely. This is not so. Did you know that right now 4 countries suffer from hyperinflation?
They are Lebanon, Venezuela, So Sudan, Zimbabwe
An interesting side note: not long ago, , Zimbabwe issued a 100 trillion Zimbabwe-dollar bill (it is worth about 40 US cents). This bill has caught the attention of collectors who collect unusual samples of paper currency.
I didn't know that Gunter. Thanks for that info!
you get zimbabwe style hyperinflation when the govt exponentionally increases money supply. so you increase it by 20%, then 30, then 40, then 60, 120, 200, 500, 900, 2000, etc. etc. y-o-y.
you get argentina style high inflation and a stagnant economy when you increase money supply just at 30 or 40% per year, , but you Don't keep ramping it up to 100, then 200, then 400, etc.
if our leaders were to stop at the stimulus that has already been approved, and does not go any further, then we should get a rise in inflation, but not look like zimbabwe, or argentina.
the problem is... once we print money like we have this last year,... then more and more politicians will want to do more in the future. long term,... discipline goes the way of the dodo bird.
remember, one sure way to destroy an economy is to destroy the currency. this is one of the main reasons why societies fall from within.
I think a huge part of this is the mentality of our politicians and others today with most realms.
They exist based on manufactured realities that don't require authentic facts or accountability to support the narratives.
You create the narrative to generate support for your agenda, then manufacture the facts........that were not there before hand and ignore the realities that tell us that it's not a good idea.
Then you sell the manufactured reality, which replaces the reality...........and repeat it over and over.
This has been the strategy of those that have won the climate change war doing it.
1. Spin every bad weather event, even cold as coming from man's burning of fossil fuels and global warming. Natural cycles that caused the same thing in the past no longer exist. Repeat this over and over.
2. Use computer generated simulations of the atmosphere going out 100 years.....the quinnessential example of a manufactured reality........pretend that the science is settled and 97% of scientists agree on it and repeat it over and over.
3. Completely ignore the short term, real world. Realities, like the planet massively greening up and crop yields soaring higher from the increase in beneficial CO2 and best weather/climate for life in several thousand years and polar bear numbers increasing 30% the last 2 decades.
Similar thing now with printing money, with the time frames sort of flipped.
1. Completely ignore the BAD long term realities that have happened to countries that did this in the past.
2. Base decisions on short term benefits. ...........which seem to be endless as almost unlimited money becomes available.Tell people that you are doing it entirely for them and their short term benefits and repeat it over and over.
In the first example of a climate crisis, your objective is to scare people about something that doesn't actually exist and likely will not and hide the massive real world benefits.
In the 2nd example of printing money, your objective is to convince people they should not be afraid of the consequences or real actions that DO have real world consequences. ....eventually.
In both cases, you are manufacturing narratives and fake or unrealistic future scenario's, then repeating them enough times so that people accept it, while completely covering up truths of that realm.
In the end, you win by convincing people to accept your bad agenda.
The reason that it's bad agenda is that its not based on objective truths which feature considerations of anything that is skeptical.
Part of being successful in today's world is being able to censor information that disagrees with or is skeptical of your position.
OK Mike we have a real world example of your theory, in your congress, coming soon
Biden wants approx 4 trillion for his Green Deal. You know the science is wrong for the Green Deal but a majority have been brain washed into thinking the planet needs some assistance to stop what ever they think will happen, and Biden wants to stop or at least slow down the supposedly harm to the planet
Biden and his handlers [Pelosi/Harris etc] want a 4 trillion spending bill to get the Green Deal up and running. This is coming to congress, for approval, in the near future, if Biden is to be believed
Will the Dems find 10 republicans who have bought into this Green Deal request, to approve an extra 4 trillion of spending
That will be approx 2 trillion of stimulus and now 4 trillion for a total of 6 trillion and the yr is hardly started
Will there be another stimulus bill. That gets us to 8 trillion
Inflation will come but more slowly than other countries mentioned above IMHO
Further to this topic of inflation
You may not think inflation will be a problem but I do
What kind of assets should most people own to combat inflation
So far the stk market has been a good investment for the most part. 401k is another good investment
Does anybody think Int rates will go up. Do you think the Fed will not let int rates get too high and possibly hurt the stk market values, or could the stk market suffer a severe correction
I would think leisure items such as snow mobiles, RV etc would be the 1st to lose value as people sell excess items and try to keep up to the rising cost of living, while wages do not increase enough. Thus the RV, the boat etc will be sold to raise cash to live on. Then stks may be sold as the ever increasing cost of living goes up and wages still do not equal cost of living. Cash savings in bank accounts will be destroyed
I don't know what the end game will look like, but I bet a lot of people will suffer greatly
Thanks Wayne, great point!
metmike: Why do the majority of Americans think that time is running out to save the planet? Did they evaluate the science themselves? Do they have weather/climate records stored on their computer? Do they even know anything about climate science other than what they have read and been told by the MSM and politicians?
This is why it was so easy to hijack climate science and even rewrite climate history(to wipe out the Medieval Warm Period, this warm 1,000 years ago.........no sheet, they did that) .
Why would a group do that to convince you of their cause if they were honest?
Like was stated before. Manufactured realities to support false narratives........repeated over and over and over and after awhile, you get the majority of people believing in it............like those that think that time is running out to save the planet.
There are many things that we are doing to hurt the planet but adding CO2 and climate change are the best things that we ever did FOR the planet. We rescued the planet from dangerously LOW CO2 levels. Plants were on the verge of shutting down below 300 ppm over a century ago.
When was the last time the news gatekeepers decided to make this headline news?
https://www.nasa.gov/feature/goddard/2016/carbon-dioxide-fertilization-greening-earth
That information is virtually censored from getting into people's brains.
And they have won the war on this. The agenda will rapidly be implemented now. Canada already has carbon taxes, as does California. You ain't seen nothin yet!!!!!
And this will do nothing but damage to our economies, hurting the poor the most and do exactly ZERO to change the weather/climate but it will put government in full control of our lives.
If I'm still here in a couple of years, I will tell you that this was 100% inevitable. You can't defy the laws of physics, chemistry and energy and economics in the real world.
You can make sheet up(manufactured realities) and use it to sell bogus climate crisis narratives to convince people that YOUR fake physics, chemistry, energy and economics will save the planet. People that get all their information from you and your sources in those realms. People that are not scientists or experts and when they read/hear the same bogus things from all the main sources at once.........believe it.
That's our world today.
Those are just words in that last post.
The facts/data/evidence to irrefutably prove it are here:
https://www.marketforum.com/forum/topic/27864/
I welcome with open arms anybody questioning anything in there.
I don't know everything about climate and hope to keep learning new things because there is still more to learn about climate.
SO:
DO you think this made up science will convince 10 republican senators to agree to the "group think idea" and vote for any future Green Deal spending bill in the senate
Will republican senators due for re-election in 2022 be brave enough to tell their folks back home, of whom 50 % or more think some thing should be done, that they did not vote for Green planet saving funding
IMHO Biden's green Deal spending bill will pass the senate, as Dems zero in on vulnerable senators due for re-election