Some people are saying the next big economic crisis will be hyper inflationary rather than price collapse...

Checked, economyx-pilled, and most of Jow Forums won't even try and understand this

Short the market and lose all your money then. I really dont give a fuck

i dont get this gif

Underrated af

>in tens of thousands of dollars of debt
>the next big economic crisis is hyper inflationary

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god she was so fucking hot

We're still waiting for hyperinflation from the QE 10 years ago. QE money doesn't circulate as much as buy assets that most of us don't own.

An inflationary collapse wont happen unless our debt is denominated in a foreign currency.

Since the US is the world's reserve currency and bonds are issued and settled in US dollars, and our debt is held mostly by ourselves, we can inject liquidity easily into our financial system in the event of a crash.

Since crashes have massive deflationary pressures due to austerity, tightening credit standards, and credit collapse (credit is other peoples income), we can just continue to buy financial assets, keep rates low, and encourage spending.

There is no self reinforcing inflationary cycle to cause hyperinflation. For example, when Germany went into hyperinflation, they had a fuckton of war debt owed to France and other nations. Since their debt was pegged to gold, the only way to make payments was to devalue their currency which consequently made further payments worse. Every single payment had a massive inflation built in eroding their currency, eventually the German people caught on and their currency was worthless. Their depression ended when France, UK, and USA basically forgave 90% of their debt and injected gold into their country.

Since, there is no self reinforcing mechanism to cause inflation (large foreign denominated debt relative to GDP), the USA will not go into hyperinflation. Now the long term threat is that we move to a global reserve currency instead of USD. Until then, the USA is insulated from hyperinflation, and that's why the US Treasuries are considered risk free.

>our debt is held mostly by ourselves

No, it is held mostly by the federal reserve.

Same shit, its denominated in USD and we can print more USD.

print money out of thin air?
Like tether?
And chink will allow that? Kek

as long as the money doesn't trickle down to the working class, there will not be any hyperinflation.
daily reminder that real economy and financial economy are now completely unrelated to each other.

I already did this in 2013 and 2014 to buy Bitcoin. Crisis hasn't even started and I'm already set lmao

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What is the story on the gif?

I can't fucking wait! I'll pay off my student loans and credit card with half my paycheck, then hop in my truck with my shotgun to do some pillaging (and rape).

Can't the fed just keep the mortgages indefinitely? and just continue to buy up threats to the economy.
There are no obvious "limit" on how many assets the fed can keep, it could be x10 or x100 the current amount.. i don't think it would matter.

They print money to "buy up threats."

That's the actual threat; not as much a bunch of dead mortgages on a bank's balance sheet. The money supply is already oversaturated; it's just so non-liquid that there hasn't yet been any felt inflationary pressure in typical household goods. You see it in equities, you see it in home valuations.

That she wants it deeper and deeper, but took it too deep and are now a degenerate hippie whore

How do i learn how to understand all this shit.

Start reading and if you're unsure of a word (like inflation just for an example), then take some time to fully understand that word.

Take your time and don't treat it like word salad. It's not.

Assets = property that generates value/appreciates (expectedly)
Liability = Obligations to pay debt/bills

To you, currency is an asset (cash). To the issue of currency (govt/fed) it's a liability since they have to account for currency as if it could still be "redeemed." Like a coupon. Bond interest payments are still called coupons.

Inflation is when the value of an asset class is reduced over time due to more instances of that asset class being brought into existence. (Purchasing power inversely related to circulating supply)

Cash is the most "liquid" asset because its can be instantly bought and sold. When you buy a dozen eggs, you are "selling" the grocer your dollars.

One reason the dollar hasn't severely inflated is because the printed money was directly injected into the price of assets (loans and stocks) rather than circulated and then used. Since those assets are less liquid, or in case of some mortgages; almost not liquid (meaning wont be sold since holder would have to reduce price more than they want due to low buyers) the printed money isn't circulating, hence bubble.

Think of a dollar as a piece of paper stating "worth one slice of american pie."

But nobody knows the exact size of the pie (it's always changing, but we estimate with GDP and other measures) and we have a rough idea of how many slice tickets exist. But in a small example if I have a blueberry pie and hand out 8 slice tix which people use to trade for other things, than I decide to make 100 more, when the first 8 ppl come back the pie has to cut into over 100 slices now per ticket and they realize the slice ticket no longer is accepted for a entire 32 oz soda because the circle k guy wanted a 1/8 of a blueberry pie for his soda, not less than 1% of a pie.

>USD can be redeemed
Redeemed for what? Gold standard is obsolete.

So wait
if all mortgages simply vanish
does $ go -50% in actual value? or worse?
because -50% isn't that bad
t. cryptofag

SAVE, DIVERSIFY, CHASE a CHECK, NEVER CHASE a BITCH

- Broad Index Funds --> own the whole market not just US but US, Europe, Asia, Emerging Markets

- Real Estate --> Own a small home/townhome. May protect against inflation and if you have it paid off, you have peace of mind when everything is fucked and have a ton of disposable cash to throw at the oversold stock market when it crash

- Bitcoin --> 3-5% of your portfolio. More if you are young. I think it has a future.

- Gold --> I personally think it's SHIT but it's where the world traditionally runs for cover in a crisis so this will probably continue

- Invest in your skills --> The saddest thing is to see old broke people with outdated skills working in retail and fast food.

If it's a massive global economic crisis you're going to get fucked like everyone else. You just want to minimize how deeply you're impacted and maximize how quickly you can recover and profit from it by buying cheap stocks and real estate.

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You can't redeem it. Its backed by the faith and credit of the U.S. monetary system; however it still must be accounted for as a liability as it is a "share" in the Treasury's ability to repay bond coupons and principle.

I'm simply saying on the accounting end, cash is not an asset for the govt. but the vehicle required for liquidity to exist in a taxable state.

High probability they are right. You can only inflate so much.. anyone knows this, right? Right guys?

ive been saying this and getting laughed at on Jow Forums for practically a year now buy S+P500 shares or be a feudal serf by EOY

If a mortgage holder walks from a 400k home owning 600k

There's an asset held by a bank or a Fed on the books called "Tom owes us 600k with a 400k collateral asset." But now since Tom said fuck that, the bank reps the home now worth 350k as the markets falling and 250k of book value just disappeared into thin air, making the bank less valuable and therefore lowering their stock price, which is why we bailed out bank stocks through the fed buying them.

But the feds stock is the currency itself, unless you think treasury bonds would reflect systemic failure before cash would.

I own BTC and inverse bond etf assets either way.

I appreciate your reply but you're talking to a

It would first pump so all the whales can exit their positions

I'm with OP where my math has said for years it will be hyperinflationary.

If mortgages tank, it will repeat the recession of '08 except this time the fed cannot bail out with making the currency worthless (meaning all assets measured in USD appear to skyrocket until it includes the price of gas and food) or no bail-out and instant great depression/civil unrest.

Hyperinflation is preferable at this point because I have got feeling the U.S. treasury will try to roll over into a new dollar issued by the treasury or possibly a government Zcash type coin ["dollar coin"] DARPA was heavily involved in zcash with MIT from the start.

so if I had a chicken
and pre economic armageddon it costs 10$
how much will it cost after all mortgages go poof
20? 100?
assuming chicken market remains unchanged

In hyper-inflationary environment

One month $10
Next month $80
Third month $400
Fourth month $10,000
Fifth month $50,000
Sixth month $300,000
Seventh month nobody cares about what its worth in USD, then they wanna know how many gallons of gas or apples your chicken is worth

Or bitcoins if we are lucky

;_;
that's like -90% in a month
brb buying a chicken coop

It would be everything though. It's the dollar, not the chickens.

So now gas is 10,000 per gal. A big mac is 750. It becomes a race to acquire "things" as less and less vendors and merchants accept the currency as it spirals into worthlessness

Look at the last year in Venezuela

My gov gave me 0% interest on my studentloans. Dumb fucks. will wait until hyperinflation

nytimes.com/2019/02/12/opinion/venezuela-hyperinflation-food-shortages.html

Like i said tho I think the US treasury will roll out a replacement liquid currency. Prob a crypto.

(Hyper)inflation occurs as a reaction to the deflationary spiral.

when do you think this will all happen?

TFW US gov unveils a cryptocurrency that is censorable and non-auditable

Check out the names behind initial zcash protocol (zerocoin turned into zcash)

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So the hollywood kikes really did succeed in corrupting her after all. She used to be so innocent, happy and full of life when she was on that Kid's react show.

Many such cases. Sad!

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If they did I wonder how fucked the exchange rate would be