HYPERINFLATION YES!

i want to invest in business

however being in the euro why would i do it now when its quite obviously going to get hit hard over the next 5-10 years

id rather hold some commodities then get on after the train derails

yeah it would be real hard to get an inflation without increasing wages, but that's not good for everyone. and usually the wages don't quiet follow the increase in prices in a hyperinflation.

what happens in the end is the poor get poorer and the rich richer because only the rich can afford to buy the assets that resist inflation. people living day to day and only having modest savings are bled dry. also one more sad side effect of hyperinflation: shortage of goods that were plentiful before. shortage of food medicine and fuel are the most painful. because people n a hyperinflation stack up on goods as soon as they can because they anticipate the inflation burning their money. the rich realizing this also, will see food items fuel and medicine as assets to invest in and artificially further contract the supply. after a while money loses value, and women sell their cunt for food after the family jewels are gone.

this happened every time before in hyperinflation. not exactly fun.

Hyperinflation is almost impossible with fiat currencies. It requires the country to either be blockaded, lack an effective tax system, or have a very high amount of foreign currency debt.

Nearly every instance of hyperinflation has been the result of fixed value currencies.

>voice of reason
>will probably be drowned out by goldbug autists

>Hyperinflation is almost impossible with fiat currencies.
what?
>Nearly every instance of hyperinflation has been the result of fixed value currencies.
i would say that is outright false user. these are only recent south american examples you talk about, but all the big hits were unlocked currencies. i have to look up the foreign debt angle. may or may not fit.

no it looks like the biggest hyperinflations were all just simple government ineptitude and overspending and overprinting. nothing else is really common in them.

sorry there is one common theme: public lose confidence in the currency and the monetary system.

ONLY GET HIGHER, YEEE YAWWWWW

Please wait until the 2nd term so I can take advantage of the hyperinflation on my student debt Donald

Money velocity is about to get really really fast.

It's gonna be yuuuuuge!

I notice you've failed to post even a single counterexample!

If you examine those "big hits" you'll find they fit into one of the categories I mentioned. For instance Weimar Germany lacked an effective taxation system; until they completely solved their hyperinflation problem by implementing one.

what does debt-leveraging look like in a Trump presidency?

You /MMT/ brah?

Better than Obama's. Trump won't be bailing out banks (aka printing money).

With historically low interest rates for years that's unlikely. Captial is as cheap as it can be.

Money mostly comes down to trust when you extrapolate it out. I doubt the US would lose any trust anytime soon. If trust is lost, the whole system is basically fucked. Worldwide, it all falls down pretty fast.

The Fed already tried handing out bags of money to banks, we got shit growth return. At least it was growth I guess.

What you are describing is People's QE. Which in theory is a great idea but not politically possible. I mean Trump was talking about haircuts to deal with the debt lol.

Or if the fed gives up and goes straight up helicopter money. I would love me some of that but conservatives would probably lose their shit and start fucking with the Fed.

Half dead is an understatement.

I'm more curious about what happens if the next recession hits before rates have risen.

fed printing money like a fat man takes toilet paper has already caused hyper inflation.

Check prices and exchange rates: your dollar has not collapsed.

Therefore there is no hyperinflation. Indeed the inflation rate is below its normal range.

Therefore you are wrong.

BTW if you're under the mistaken impression that past "printing" can cause future hyperinflation (or even just future inflation), be aware that if the inflation rate ever becomes a problem, the Fed can counteract it simply by raising interest rates.

It does fit the facts, though I still question everything.

If the next recession hits before rates have risen, the rate rise will be cancelled.

The government will have the choice between using fiscal policy to escape the recession or vainly trying to balance the budget (deepening the recession).

Though I've never supported Trump, I'm reassured that he understands infrastructure spending can revive the economy.

>I'm reassured that he understands infrastructure spending can revive the economy.
Obama already did it.

>en.wikipedia.org/wiki/American_Recovery_and_Reinvestment_Act_of_2009#Infrastructure_investment

>Obama already did it.
...on far too small a scale, because the Republicans wanted to limit government spending.

when that carry trade unwinds watch out brah

do you think they'll loosen the purse strings now that they have congress and the white house?

I think there's a good chance.

The most likely alternative is to copy Britain's mistake of signing lots of public private partnership deals. And when that's done for ideological reasons (to limit government spending figures) instead of being limited to the minority of cases where it's genuinely more efficient, it will turn out to be much more expensive in the long run. But doing nothing is an even bigger false economy.

So what can I invest in if I like the stock market? Housing REITs should do pretty good since their assets will all increase possibly.

keyword: hopefully

wages are sticky in the short term, so people generally get fucked by inflation

not saying we haven't been getting fucked by rising cost of living relative to income, but we would get fucked more

>tfw functional finance doesn't have mainstream support yet, even though the facts are on our side

They could do something dumb like no income taxes for a year or two or something. Republicans would love that.

>Raise tax-free threshold
>Abolish FICA (payroll) tax
>Give everyone a one-time handout, say, $1000
>Fix bridges and shit
So many easy and effective policies but Trump will probably just stick to Republicrat neoliberalism.

or you could just NOT HAVE A FUCKING CENTRAL KIKE BANK AND NOT PRINT ANY FUCKING CURRENCY AND JUST THE MARKET DO SHIT ON ITS OWN YOU STUPID FUCKING CUNT

What would hyperinflation mean for student loans?

REEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

it's not that tax system prevents hyperinflation, more like without taxes a government has no choice but to print money to cover it's operational costs which makes hyperinflation happen.

it's not the taxation that matters, but that the government is liquid and they don't print money like crazy. if a government could cover it's operating expenses from state monopoly industries like say oil there is no need for taxes for example.

>20k student loan debt
>HYPER INFLATION
>get part time job at mcdonalds that pays $1000/hr
>pay off loan in a week

ahahhaha this is what you actually believe faggot?

the student loan in a hyperinflation would have a 2341% interest on it yearly. your little $20k loan would be 500k in a year and $46mil in two years.

>variable rate student loan
ISHIGGYDIGGY

Wrong. It is the tax system, which takes out of the economy the money the government has put in.

As long as there's an effective tax system, the government can print as much money as it wants and it won't cause hyperinflation... unless the currency value is fixed, the money is immediately sold to service a foreign currency debt, or the country is blockaded.

Venezuela has paper currency you fucktard. Part of their fucking problem was they were hoarding useless fucking bullion.

meant towards OP. sorry broski

>As long as there's an effective tax system, the government can print as much money as it wants and it won't cause hyperinflation...
that's a retarded statement with absolutely no basis user.

i do understand that if everything goes right and the money printing is roughly in line with the velocity of money multiplied by tax rates it would not lead to inflation. but that doesn't mean the government can print as much money as it wants with no risks at all.

>tax system, which takes out of the economy the money the government has put in
this is really painfully stupid in itself.

the government has expenses taxes cover these expenses the taxes don't take money out of the economy user, they merely redistribute it.

in absence of an effective tax system that COVERS the governments spending it has no choice but to print more currency thus making the bed for hyperinflation. when the government does this, the people immediately start to lose confidence in the solvency of the government and the future value of the currency.
thus a premium is put on all acceptance of the currency to represent this risk (ie shit got more expensive) when shit gets more expensive people want to spend their money fast lest it loses value this creates a temporary shortage of goods which further increases the prices but of course the money supply follows.

and bamm you have hyperinflation. adding taxes to this spiral system will not slow it down one bit. usually the currency has to go and a new one must be issued by a new government or people will simply start using foreign currency.

Brilliant.

Inflation and hyperinflation are different things. When a government prints money, it results in competitive devaluation, not hyperinflation. Some inflation occurs, but the taxes ensure the money gets back to the government.

Where a currency is fixed, that prevents competitive devaluation from occurring so there is a large hyperinflation risk.
When a country is blockaded it can't take advantage of competitive devaluation so there is a hyperinflation risk.

Normally the government buying foreign currency results in competitive devaluation. But when the government prints money and immediately sells it to fund a very large foreign currency repayment, that can cause an immediate catastrophic devaluation (hyperinflation) without the money even entering the domestic economy or boosting tax revenue.

If you still think my statement is retarded or baseless, try looking for counterexamples: ITYF there aren't any!

There's two different ways of looking at it: you can regard the government as putting money in and taking money out, or you can regard it as recirculating most of the money in the economy and putting in or taking out the difference.

Because recirculating the money takes time, the former approach is, IMO both more useful and a more accurate description. But you can continue to think of it in the latter way if you want.

Though a wage price spiral is a feature of hyperinflation, it's never the cause.

Taxation completely solved the Weimar hyperinflation, and has solved other hyperinflation events since. Practical considerations (people dislike having to deal in millions for everyday transactions) mean a new currency is often introduced... but at a fixed rate to the old one, so it's effectively the same currency.

Why do you think hoarding bullion was part of Venezuela's problem?

Interesting thread. This is a good read if you'd like to know more about inflation and fiat currency
federalreservehistory.org/Period/Essay/13

No way to do it though-Putin help us!!!