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July 17, 2012 at 7:11 pm #8468ashvinParticipant
I’m always surprised by the common argument that central authorities will “not allow defaults to occur”, as if a) they have a clear-cut choice in the
[See the full post at: The Dreaded Defaults are Here]July 19, 2012 at 4:08 am #4708Basseterre KitonaParticipant
I’m not surprised to see Detroit, Michigan on that ‘Oh Crap’ list. Just this morning I was reading about the dire state of living in that city via detroitbloggerjohn’s column at the Metrotimes. Here’s a link if you want a glimpse of the desperation that comes to the surface in a collapsed society:
Sign of the Times
https://metrotimes.com/culture/sign-of-the-times-1.1344652July 19, 2012 at 4:38 am #4709AnonymousGuest
Got Gravity’s recursive algorithm?July 19, 2012 at 6:07 am #4712Golden OxenParticipant
Another poignant reminder that austerity and deflation are not an option for our problems, not in this day and age.
Give me inflation over this for sure, but please, not a hyperinflation. Perhaps it will not work, but it is worth a try. Anarchy, murder, and mayhem aren’t going to solve anything.July 19, 2012 at 6:07 pm #4728billhartreeParticipant
And yet the stock markets surge ahead: anticipation of QE3 or what?July 19, 2012 at 8:17 pm #4730williamParticipant
I disagree with a growth mentality. No matter how you argue it continuous growth is not possible during a time of depleted resources. In fact once resources start to wane and growth use up more resources we have a name for that CANCER.
If we can maintain our size and consumption we would be something called sustainable. There would be no issues. We are unsustainable and will not grow or even maintain what we have. We will reduce it is just a question of how much.July 19, 2012 at 8:56 pm #4733pipefitParticipant
No amount of defaulting will make difficult to produce oil less expensive to produce. No amount of Chapter 9 activity will make it rain or halt global warming, and push down the cost of food.
Due to the huge population of the planet, we’re dependent on the marginal oil fields and the marginal fields of corn. And the prices for these things are set at the margin.
The deflationistas are scratching their heads, wondering when the deflation in wholesale and retail prices will arrive. When you see Godot, you will still have to wait some more. The ‘deflation is a monetary phenomenon’ is a paradigm for developing, or even mature, systems. It doesn’t apply to systems, such as the present world economy, where shortage of cheap oil and arable land is in play.
Theoretically, the world’s government could get together and renounce war and divert several trillion dollars from military spending to food production, alternate energy, etc., but that isn’t politically possible at the present time. Hyperinflation will arrive first.July 21, 2012 at 9:31 pm #4774AndrewPMember
Isn’t it true that the Fed can legally buy gold in addition to the assets Bernanke mentioned?
“”I assume there is a theoretical limit on QE as the Fed can only buy Treasuries and Agencies”. “
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