As goes the US, so goes the world...and we're about fucked!

[Seth]

Now who looks stupid for not having a bunker full of food and ammunition?

Finance
How Long Do We Have Before Seeing Hyperinflation? One Expert’s Answer May Frighten You
Oct. 2, 2013 8:45pm Erica Ritz

David Buckner, the founder and CEO of Bottom Line Training and Consulting, an adjunct professor at Columbia University, and the author of “Permission to Think,” explained on the Glenn Beck Program Wednesday why America hasn’t yet seen hyperinflation — but why it could be just around the corner.

Buckner said that in discussing hyperinflation, people often refer to the Weimar Republic, Zimbabwe, and Bolivia, but say “it could never happen here” because a “certain kind of layering has to occur” that America hasn’t seen.
David Buckner Speaks With Glenn Beck About Hyperinflation in America

(Photo: TheBlaze TV)

That layering, he said, or the “recipe” for hyperinflation, is:

1) Economic Implosion

2) Collapse in tax revenues

3) Raise taxes

4) Lenders unwilling

5) Austerity or print

Beck seemed shocked by the list, saying all five have occurred.

But Buckner said some still squabble about certain points in the list — and regardless of whether we satisfy the recipe, people still say three things in America are “different,” and set us apart from the standard formula.

First, it is said that “everyone wants to buy our debt,” and no one will ever stop wanting to do so. But Buckner countered that China is already quickly shifting our debt quickly to gold, and analogized the situation to a restaurant where China, the chef, lends the United States money to eat at its establishment. Pretty soon, he said, there will be other customers, like India, who can pay outright.

Second, some also claim that “we’re not printing money” because “we’re exchanging an asset – a bond – for cash.”

“What they’re not saying is where that bond’s coming from – treasuries. As soon as the government puts it out there, the Fed comes and takes it,” Buckner said. “It’s circular, it’s absolutely circular. So we are printing money.”

The third factor that many say differentiates America is that we are a “productive” country, but Buckner said he disagrees there, as well.

What exactly does America produce these days, he asked? We have Apple, but the products are primarily manufactured overseas. We have a good financial sector, but can we depend on that in tough times? Others cite the country’s many innovators as something we “produce,” but Buckner noted that innovators are “produced” elsewhere, also.
Complimentary Clip from TheBlaze TV

“And everybody says, well you’re not seeing hyperinflation,” Buckner said, but that’s because, “the interest rates are so low, nobody’s putting that cash back into investments in the United States. But they are putting it into desperate countries in Europe. They’re putting it into other investments. And the money’s going out there, so the second Bernanke raises the interest rates, all of the sudden the money sucks back into the United States and we have hyperinflation.”

Beck asked Buckner if we need an “event” of some sort to trigger such a meltdown.

“We’ve had an event, but…we’ve become comfortably numb,” Buckner said. “So there’s been a lot of hidden stuff that’s going on. The treasuries continue to go out, and Bernanke continues to buy debt. [But] anytime he starts to back off the markets freak out, because they know. The markets know. But we don’t, the people don’t. People who are retired, pensioners, elderly, people who are holding money are going to be devastated.”

When Beck asked for a timeline, Buckner said that by January of 2015, if not by October in 2014, we are likely to see “an increase in interest rates which will start the domino.”

“When Bernanke announced that there would be a tapering, the markets just dropped because they knew that even if the interest rates changed one infinitesimal amount, it was the beginning of the domino,” he said.

“How fast do the dominoes go down?” Beck asked.

“Three months,” Buckner replied without hesitation. “You listen to many of the economists — within three months. And it’s going to be perception more than real price. You’re going to see hoarding, you’re going to see fear. It’s not the actuality. So if they can put a glaze over everybody…it’s may slow it down. That”s the problem, is we’re dealing with an illusion. It’s an illusion of what is real. We don’t have the money. So the interest rates go up, you’re going to see a domino.”

[JimC]

Scrumple will be onto this thread like a blowfly on shit...

[cronus]

No, the US is holding back a massive progressive change with its debt....last time this happened the US had potential now it has deficit. As goes the world leaves US behind....to fight over its lost dream.

[Seth]

No, the US is holding back a massive progressive change with its debt....last time this happened the US had potential now it has deficit. As goes the world leaves US behind....to fight over its lost dream.

We'll see. Call you from the bunker...let's say 4562 KHz 0000 GMT on Wednesdays? I have this cool Motorola Micom HF SSB that does ALE and encryption. We'll have to exchange a one-time pad for the keyloaders...

[cronus]

No, the US is holding back a massive progressive change with its debt....last time this happened the US had potential now it has deficit. As goes the world leaves US behind....to fight over its lost dream.

We'll see. Call you from the bunker...let's say 4562 KHz 0000 GMT on Wednesdays? I have this cool Motorola Micom HF SSB that does ALE and encryption. We'll have to exchange a one-time pad for the keyloaders...

Debt stops folks doing stuff and violently losing debt makes for anarchy in the short term....might take six months or six years but a new order will form without a debt burden to hold it back from doing stuff. Then we'll have cities in space maybe? if the level of crushing debt represents the very force of change being held back....that is enough for the next great step forwards. Simply have to survive the interim here and there, along with making your smartest power moves for the new era coming to birth.

[pErvinalia]

Can someone give me the economics for dummies version of this? Why will money flowing back into the US for investment cause hyperinflation?

[cronus]

Can someone give me the economics for dummies version of this? Why will money flowing back into the US for investment cause hyperinflation?

Ask a toxic bank not me.

[Audley Strange]

"One expert, whom we kicked a few bucks to give us quotable alarmist things to stick in the minds of fools as talking points and then FACTS said some quotable and alarmist things for money. Inevitably Fools were in an uproar!!"

[Hermit]

Now who looks stupid for not having a bunker full of food and ammunition?

Nobody looks stupid for not having a bunker full of food and ammunition now. Feel free to get back to me about that in three months' time. There's a distinct possibility that David Buckner, the founder and CEO of Bottom Line Training and Consulting, an adjunct professor at Columbia University, and the author of “Permission to Think” turns out to be wrong.

[Horwood Beer-Master]

...explained on the Glenn Beck Program...

[/thread]

[pErvinalia]

Yeah, that pretty much sealed it for me.

[MrJonno]

I thought the US only owed one year of GDP, thats roughly about what I personally owe (as in one years wages)

Don't seem that much to me

[Coito ergo sum]

[Coito ergo sum]

I thought the US only owed one year of GDP, thats roughly about what I personally owe (as in one years wages)

Don't seem that much to me

You're forgetting that a lot of our GDP is smoke-and-mirrors. For example, the nearly $1 trillion in "stimulus" spending counted towards GDP.

[MrJonno]

I thought the US only owed one year of GDP, thats roughly about what I personally owe (as in one years wages)

Don't seem that much to me

You're forgetting that a lot of our GDP is smoke-and-mirrors. For example, the nearly $1 trillion in "stimulus" spending counted towards GDP.

But debt needs to be compared to assets every single piece of property private/public and 300 million people are all possibly assets if needed.
How much is Alaska worth these days?