** 10-Apr-2020 World View: Debt not money
vincecate wrote: Fri Apr 10, 2020 12:57 pm
> Yes, printing money is like a drug to the economy, at some point
> it will fail. The way it fails is called hyperinflation. I really
> think we are getting close.
No it isn't. That's not even remotely possible. This is the opposite
of hyperinflation.
When people have tons of money, then they buy lots of things, creating
inflation.
But people have NO money today. They have the opposite. Instead of
tons of money, they have tons of debt, which is the opposite. They
have tons of interlocking debt.
They do not have the money to spend or the desire to spend, so there
won't be hyperinflation. You have a clue what's going on when the
federal government is tying its bailouts to requirements to spend. If
the government has to force people to spend there won't be inflation.
If people won't spend, then there'll be deflation, the opposite of
inflation.
The way the economy will fail is when somebody's margin call or
somebody's bankruptcy triggers a chain reaction of debt payment
failure. That's what a deflationary spiral is, as one bankruptcy
triggers another one. The principle of maximum ruin: The maximum
number of people are ruined to the maximum extent possible. Inflation
is a fantasy.