But it's not hard to find examples of inflationary death spirals; Plus the occasional deflationary death grind.
Is there any commonality between the systems (nations?) that have historically gone under because of one as opposed to the other?
I would go with deflation for Europe and the US eventually.
Either is a total disaster for property (in real terms as always).
Generally inflation is for less developed economies. Deflation for economies with large debt markets. Deflation is also slower and therefore more manageable.
I would go with deflation for Europe and the US eventually.
Hard to say with the USA which it will be. With the US Dollar being a reserve currency, there are a lot of Dollars sitting outside of the USA and effectively out of circulation (being used for international trade rather than being redeemed in their country of origin for goods and services).
If the world continues to move away from the dollar in international trade, those dollars will find their way home and cause inflation.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Hard to say with the USA which it will be. With the US Dollar being a reserve currency, there are a lot of Dollars sitting outside of the USA and effectively out of circulation (being used for international trade rather than being redeemed in their country of origin for goods and services).
If the world continues to move away from the dollar in international trade, those dollars will find their way home and cause inflation.
Yes, I've heard that arguement.
Why hold US dollars now? What changes that in the future?
Why hold US dollars now? What changes that in the future?
Our company holds US Dollars because we import components and steel from overseas and the contract pricing is always in USD. If we didn't hold USD, and there was a swing in rates between ordering and invoicing (sometimes a year apart), we could lose a lot of money.
Also, most of the worlds oil is transacted in USD and as a result, so is just about everything else. So governments and companies around the world hold USD or UST's in huge quantities.
It is the same as you dishing out IOU's to your mates for cartons of piss. If they used those IOU's to trade with eachother, or stuck them under the mattress, you would be able to get as many cartons as you wanted for free by writing out IOU's.
But if one day, your mates decided to all come round your house and redeem those IOU's at the same time, you would be shafted.
The reason that it could change in the future, is that the world has cottoned on to the huge benefit that the US has gained from being a reserve currency issuer. There are moves away from the dollar, most notably by the Russians and Chinese.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours. Those who can, do. Those who can't, teach. "It's an itchy blanket, it's designed to remind you how lucky you are"
You wasted good money on cake that you could have been investing wisely in real assets like benzene and tabak and vodka??? ...
Was way too young for the fun things back then.
Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours. Those who can, do. Those who can't, teach. "It's an itchy blanket, it's designed to remind you how lucky you are"
My personal punt was that as a young bloke back then, you were probably just showing off to a girl by 'squandering' your hard earned on buying her a cake? ...
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