Post
Topic
Board Speculation
Re: $500 bitcoin by mid-July
by
wachtwoord
on 21/04/2013, 10:30:05 UTC
There cannot be any deflation. The printing presses are running like never before.

LOL!

Do you really think it is that simple?

Stop getting your economics advice from internet conspiracy gooks and realise that the global economy is screaming out to have a deflationary crash, which is being postponed due to central bank printing. And where is all this new 'printed money' going? Is it going to Main Street, have your wages suddenly tripled in nominal terms thanks to all the new dosh floating around the economy which has also pushed up the price of bread, milk, transportation costs 3-4 times? The answer is of course no! This money for the most part has not went into the economy of real things but is being used to prop the balance sheets of otherwise insolvent financial institutions/entities, essentially allowing the multi-billionaire financial class who are invested in and ultimately control these institutions to claw 'value' back which would otherwise have gone up in smoke back in 2008. Thus allowing the elite parasite class to continue with their mass theft of wealth whilst passing on the short term costs onto the tax payer. Think of it a bit like a tradesman who knows he is going out of business, buying himself a bit of time to shift all his valuable and seizeable assets out of the reach of the receivers, before being foreclosed on.

Whilst the reality is that ultimately, this will all end in hyperinflation as this us the only way the US has to deal with the astronomical debt without the US government defaulting, which just isn't going to be allowed to happen. What major powers and creditors of the US such as China make of this is another matter. However, in between then and now, there will be serious deflationary events, which will destroy huge amounts of wealth, pushing the 99% further down into the poor house, before the central banks come to save us all with yet more money printing, (again shoring up balance sheets of insolvent/bankrupt institutions, allowing them to buy up all the assets at relative fire sale prices).



dude you are describing inflation. Inflation is the increase of the total amount of some good (in this case fiat currency) undermining its value. Deflation is the decrease in the amount of outstanding fiat currency.

When more USD is created than destroyed there is inflation.