This is true, we're going to see deflation and prices completely drop due to the slowdown in spending and people losing their jobs. However, if things recover, we'll see massive inflation since unchained monetary policy has become unleashed. On top of this, what happens to all the nations holding USD? Will we see a massive influx of that wash back ashore? Another potential for inflation. Governments always prefer inflation because they can tax inflation, so they'll go far above simply staving off deflation and create more inflation. Either way the dollar dies in the end. This is a reset, the dollar is done. New dollar coming.
A surging dollar suggests deflation, no? It is worth more than it was previously, which makes it more valuable if you just hold it. This is not what they want, they are attempting to continue inflationary policies by printing and spending more money. Deflation is good for the people because they benefit less from corporate investments and interest because they have less capital. Inflation keeps the goy from prospering while deflation and flat money makes things a more even playing field.
Yes, but also because the suspended economy & hoarding means dollars are sitting still rather than circulating through the economy. That is the liquidity crisis they are talking about, and I don't see how the effect is any different from deflation.
But the big thing we'll be the flood of loan defaults that is coming. Considering they are losing the deflation battle before that has even begun, I'm bracing for serious deflation. Which means get out of debt, hold cash, and wait to buy up assets on the cheap.
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chirogonemd ago
It's a kill-our-currency hunting party. We're gonna find that USD, and we're going to mount it on the wall with other dead things. Release the hounds.
onezeno ago
The dollar is surging. Washington is doing everything it can to stave off deflation.
ketoll ago
This is true, we're going to see deflation and prices completely drop due to the slowdown in spending and people losing their jobs. However, if things recover, we'll see massive inflation since unchained monetary policy has become unleashed. On top of this, what happens to all the nations holding USD? Will we see a massive influx of that wash back ashore? Another potential for inflation. Governments always prefer inflation because they can tax inflation, so they'll go far above simply staving off deflation and create more inflation. Either way the dollar dies in the end. This is a reset, the dollar is done. New dollar coming.
clubberlang ago
Had ago
A surging dollar suggests deflation, no? It is worth more than it was previously, which makes it more valuable if you just hold it. This is not what they want, they are attempting to continue inflationary policies by printing and spending more money. Deflation is good for the people because they benefit less from corporate investments and interest because they have less capital. Inflation keeps the goy from prospering while deflation and flat money makes things a more even playing field.
chirogonemd ago
Is this because the euro is tanking? Do you think it will continue to surge?
onezeno ago
Yes, but also because the suspended economy & hoarding means dollars are sitting still rather than circulating through the economy. That is the liquidity crisis they are talking about, and I don't see how the effect is any different from deflation.
But the big thing we'll be the flood of loan defaults that is coming. Considering they are losing the deflation battle before that has even begun, I'm bracing for serious deflation. Which means get out of debt, hold cash, and wait to buy up assets on the cheap.