Question: Hyperinflated USD might actually be happening now. Is there a contingency plan?

RickEngland

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Liquidity isn't invested in precious metals because of a fear of hyperinflation, it's generally done because the fear of falling asset values on stocks, even bonds.

Generally investors would switch to bonds (mainly gilts, gov bonds) in times of economic trouble. But there's so much liquidity out there right now, that investors are buying negative interest rate gilts. That is; they're paying governments to take their cash....crazy right.

So this is part reason for massive fast recovery on stock markets, as there's so much liquidity. Moving back into shares, as economic risk reduces.

There might be a lot of struggling people, but just imagine how much spare cash the middle classes have, still being paid to work from home, but no where to spend it for 3 months. Not even any commuting costs.

People are pumping billions into funds managers right now, or doing it themselves. With nations falling over themselves to print cash to support economic recovery, pushing up asset values even more (lower risk).

I mentioned a month or so ago, you could make an ATH x100 on stocks with relative ease, for those that didn't follow a total doom scenario.

What will be interesting is if stocks surpass pre covid highs, not because companies are worth that value, but because the perception of value and demand pushes it to those values. Where else is the money going to go?

For those that think I talk poo, I've put everything I have on the market. Once in a lifetime opportunity. Doing very well, but not got any liquid cash right now. Might be forced to take some profit soon, to pay some bills haha.

It's not hard to best any game ATH, in the real world.

From hyperinflation concern, wont happen. That's another long read, although you might be bored already.

Rick.
 

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I think corned beef and bottled water are good investments, but what do I know? ;)
 

GxB

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Liquidity isn't invested in precious metals because of a fear of hyperinflation, it's generally done because the fear of falling asset values on stocks, even bonds.

Generally investors would switch to bonds (mainly gilts, gov bonds) in times of economic trouble. But there's so much liquidity out there right now, that investors are buying negative interest rate gilts. That is; they're paying governments to take their cash....crazy right.

So this is part reason for massive fast recovery on stock markets, as there's so much liquidity. Moving back into shares, as economic risk reduces.

There might be a lot of struggling people, but just imagine how much spare cash the middle classes have, still being paid to work from home, but no where to spend it for 3 months. Not even any commuting costs.

People are pumping billions into funds managers right now, or doing it themselves. With nations falling over themselves to print cash to support economic recovery, pushing up asset values even more (lower risk).

I mentioned a month or so ago, you could make an ATH x100 on stocks with relative ease, for those that didn't follow a total doom scenario.

What will be interesting is if stocks surpass pre covid highs, not because companies are worth that value, but because the perception of value and demand pushes it to those values. Where else is the money going to go?

For those that think I talk poo, I've put everything I have on the market. Once in a lifetime opportunity. Doing very well, but not got any liquid cash right now. Might be forced to take some profit soon, to pay some bills haha.

It's not hard to best any game ATH, in the real world.

From hyperinflation concern, wont happen. That's another long read, although you might be bored already.

Rick.
most big names in the business are saying that there will be another hard crash before it recovers. so i wouldnt exactly call it a once in a lifetime situation. crypto would be better for that.
 

RickEngland

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most big names in the business are saying that there will be another hard crash before it recovers. so i wouldnt exactly call it a once in a lifetime situation. crypto would be better for that.
Crypto has it's fans, personally I wouldn't put my life savings into an unregulated currency with no asset to back it up. If i bought a bank share for example, I 'own' part of that bank. Then add in gov backed bank debt, and it's like win-win situation. Well you know...Govs did shut the world down, it's their risk afterall. Funny stuff.

None of these big named brokers no what's going on, there's not been a government backed world shut down ever before. While the money keeps going in, shares will keep rising. The smart people are the brave investors. Even so, theres a ton of undervalue in the markets right now. Even on firms that suspended divs, auto bounce on those stocks when divs restart.
 

Aloisius

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Yup it wouldn't hurt to make a nice pile of diverse. 100$ each of gold, silver, bitcoin, ltc, doges, xrp, beans, rice, corned beef, toilet paper, ammo, gasoline, batteries, plywood, plastic sheets, nails, duct tape, machetes, water...

xrp just in case since its the cias crypto...
 

Kerham

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most big names in the business are saying that there will be another hard crash before it recovers. so i wouldnt exactly call it a once in a lifetime situation. crypto would be better for that.
In my opinion crypto currency will never be a thing, exactly for trust reasons, which are fundamental to the money concept and which paradoxically crypto hopes to enforce.

That being said, as technology, I would say we're barely scratching the surface, the future will absolutely see some sort of worldwide scale-usage of these autonomous registries, but not necessarly in the financial sector.
 

Aloisius

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In my opinion crypto currency will never be a thing, exactly for trust reasons, which are fundamental to the money concept and which paradoxically crypto hopes to enforce.

That being said, as technology, I would say we're barely scratching the surface, the future will absolutely see some sort of worldwide scale-usage of these autonomous registries, but not necessarly in the financial sector.
This is the point of my post. The trust level of fiat money is based on hot air. Blockchain inherently eliminates the need for trust since it's a ledger.

point 1 trust:

gold-gains-fed-qe-commitment-crashes-dollar

This chart is the same as trust level vs fiat imo. The fact that it's useless without the internet is equal to having nowhere to sell your gold in the same SHTF scenario. Both can't be eaten or shot. You can't endlessly print gold or bitcoin. You do know about the fed printing trillions, right?

point 2 blockchain:

microsoft-releases-bitcoin-based-id-tool-as-covid-19-passports-draw-criticism

Here we got one of the worlds most sinister organizations preparing to present a solution to a problem that never even exsisted. If, on the other hand, they will blockchain politicians, policemen, ngo's first then maybe it might be workable.

If point 2 comes to pass, point 1 will be useless. It just might be that the elites vision of our future as autonomous slaves has no money.
 

Mega

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My 'jokey' reply was above.

The only real currency is highlighted in this film. It should make everyone consider if they are making the best use out of it.

Or just enjoy it for the good Sci-Fi film it is.
 

GxB

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In my opinion crypto currency will never be a thing, exactly for trust reasons, which are fundamental to the money concept and which paradoxically crypto hopes to enforce.

That being said, as technology, I would say we're barely scratching the surface, the future will absolutely see some sort of worldwide scale-usage of these autonomous registries, but not necessarly in the financial sector.
thats the thing. fiat needs trust in the government, which in case of the us means trust in donald trump (hoho).
crypto doesnt need trust. you only need to trust yourself. everything else is completely transparent. thats why hackers usually have a hard time doing anything with the money, as the stolen funds get flagged and its game over for them.
 

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This is the point of my post. The trust level of fiat money is based on hot air. Blockchain inherently eliminates the need for trust since it's a ledger.

point 1 trust:

gold-gains-fed-qe-commitment-crashes-dollar

This chart is the same as trust level vs fiat imo. The fact that it's useless without the internet is equal to having nowhere to sell your gold in the same SHTF scenario. Both can't be eaten or shot. You can't endlessly print gold or bitcoin. You do know about the fed printing trillions, right?

point 2 blockchain:

microsoft-releases-bitcoin-based-id-tool-as-covid-19-passports-draw-criticism

Here we got one of the worlds most sinister organizations preparing to present a solution to a problem that never even exsisted. If, on the other hand, they will blockchain politicians, policemen, ngo's first then maybe it might be workable.

If point 2 comes to pass, point 1 will be useless. It just might be that the elites vision of our future as autonomous slaves has no money.
 

Aloisius

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I am noticing a gradual increase in prices for everything except gas. Creeping higher ever faster. There's more than just a reset coming. The controllers are in a panic now to regain control that they are losing. Perhaps it's just pre-election panic, but I really think the global elites are on the rocks. And they hate losing control. Like, really HATE.

Theres another thread on this exact same subject here:

The PED-USD connection - will it last?
 
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Aloisius

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Does anyone else like gold silver and bitcoin? Is it bitcoin litecoin and monero? Should we be buying cows goats and chickens? Guns, ammos and gas? Or just marijuana, beers and tequilas?
 

San

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Does anyone else like gold silver and bitcoin? Is it bitcoin litecoin and monero? Should we be buying cows goats and chickens? Guns, ammos and gas? Or just marijuana, beers and tequilas?
All of the above, except replace the goats with sheep and use the grass strictly for trading.
 

Aloisius

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silvers! to the moon!!! get a doge too yo!
 

Stefan 008 Bond

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Crypto has it's fans, personally I wouldn't put my life savings into an unregulated currency with no asset to back it up. If i bought a bank share for example, I 'own' part of that bank. Then add in gov backed bank debt, and it's like win-win situation. Well you know...Govs did shut the world down, it's their risk afterall. Funny stuff.

None of these big named brokers no what's going on, there's not been a government backed world shut down ever before. While the money keeps going in, shares will keep rising. The smart people are the brave investors. Even so, theres a ton of undervalue in the markets right now. Even on firms that suspended divs, auto bounce on those stocks when divs restart.
Not trying to talk ypu into crypto or bitcoin but...

Crypto are indeed regulated in most countries (coinbase and gemini in US offer fdic insurance)

Bitcoin is not backed by nothing. It costs (depending on your electricity costs) anywhere from 5 -12k (again in electricity costs alone) to procure a bitcoin.
Bitcoin also has one of the strongest and most stable networks out there.
As for your comments on the stock market.
Fortune favors the bold, but do not mistake that for being a smart investor.
Most of the people cleaning up in the market right now are complete rookies that dont know any better to NOT buy a stock when the P/E is over 100 lol.
In a bubble, everyone thinks they are a genious.
 

Stefan 008 Bond

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Does anyone else like gold silver and bitcoin? Is it bitcoin litecoin and monero? Should we be buying cows goats and chickens? Guns, ammos and gas? Or just marijuana, beers and tequilas?
Yes, yes and yes....
Anything thats a "hard currency" right now really
 

Stefan 008 Bond

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Btw... I still think MA should look into decentralized exchanges.
Can swap whatever currency you want for whatever currency you want including crypto and tokenized assets like gold...
Anyone else have any thoughts on decentralized exchanges?
 

San

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Bitcoin is not backed by nothing. It costs (depending on your electricity costs) anywhere from 5 -12k (again in electricity costs alone) to procure a bitcoin.
Bitcoin is not "backed" by the cost to create it. That money is spent and the energy turned into hot air and dissipated into nothingness. Bitcoin is backed solely by demand, and is created because bid prices exceed the cost. The same applies to precious metals, which cost money to extract from the earth, which is done only because the cost is covered by demand. Metals just have the added advantage that there are other uses for them than merely as currency, and this is what really "backs" them. This is the only way to have a currency which cannot fail.
 

atomicstorm

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Bitcoin is not "backed" by the cost to create it. That money is spent and the energy turned into hot air and dissipated into nothingness. Bitcoin is backed solely by demand, and is created because bid prices exceed the cost. The same applies to precious metals, which cost money to extract from the earth, which is done only because the cost is covered by demand. Metals just have the added advantage that there are other uses for them than merely as currency, and this is what really "backs" them. This is the only way to have a currency which cannot fail.
I realize you are very anti-crypto but you do need to realize that digital currency is the future. We are probably even only a couple years away at best as noted by the LAST TWO relief bills in the US, including the current proposal.
 

San

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I realize you are very anti-crypto but you do need to realize that digital currency is the future. We are probably even only a couple years away at best as noted by the LAST TWO relief bills in the US, including the current proposal.
This is a misunderstanding. Neither am I anti-crypto nor does what I said contradict their likely adoption ahead. I am just talking against some misconceptions and misapplications. And "only way it cannot fail" does not imply it cannot succeed. Paper currencies succeeded. Sometimes, or often for a time. But we have also seen how and why they can fail and therefore we can translate that into caveats for this new thing. It is a superior new technology to preserve integrity. But I am making the prediction that government adoption WILL corrupt it, for more than one reason but beginning with that the whole conception of cryptos is decidedly anti-government.
 

Aloisius

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Bitcoin is not "backed" by the cost to create it. That money is spent and the energy turned into hot air and dissipated into nothingness. Bitcoin is backed solely by demand, and is created because bid prices exceed the cost. The same applies to precious metals, which cost money to extract from the earth, which is done only because the cost is covered by demand. Metals just have the added advantage that there are other uses for them than merely as currency, and this is what really "backs" them. This is the only way to have a currency which cannot fail.
if you count the miner hardware as backing then bitcoin also has multi-use advantage. therefore, by your logic, bitcoin can't fail. alas, bitcoin does have a weakness that is shared by all currency systems; it is dependant on the network to survive. i suppose, in a zombie apocalypse scenario, all money will be meaningless if there is not very many people that want it.
 

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America is no longer on the gold standard so precious metals are a separate beast, and highly speculative, and very unpractical for any scenorio people claim it will be worthwhile. Good luck finding a gold buyer in the middle of an apocolyse...you literally would have more value in ammo. Betting against the US, especially with Trump in power is just a bad move. The USD will and always will be the standard, the moment it is not, is the moment we all have far more to worry about than this game. Digital currency will never be the future, credit (which is already digital and extremely secure with billions spent on security) already covers all of the solutions crypto claims to offer, and reallly even more than crypto can offer....which can be and very often is hacked. Good luck finding a crypto that's willing to give you 200k on just interest. Not to mention, the only reason crypto exists is to catch criminals....ask the taliban how well crypto worked for them. At least understand who made it before falling in love with it. FYI Satoshi Nakamoto means “Central Intelligence” in Japanese. ... The meaning of Satoshi Nakamoto can be loosely interpreted as something that pertains to a highly organized and intelligent agency. Go ahead use it all you want.......

It amazes me that all these crypto fans never seem to ask just what it is they are calculating with all that massive computing power. This is government level computing power, the largest supercomputer on earth. The fact it isnt shut down tells me the US government made it and uses it to train their AI to be decades ahead of the rest.

If still not convinced you are free to look up who stole most of silk roads "secured" crypto......it was an FBI agent with access to the tools.
 
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San

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if you count the miner hardware as backing then bitcoin also has multi-use advantage. therefore, by your logic, bitcoin can't fail.
This hardware has no use other than crypto mining, therefore the logic is correct. Electronics do contain some amounts of various precious metals, so whatever you can get from recycling is its value should the main purpose become obsolete.
 

Aloisius

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This hardware has no use other than crypto mining, therefore the logic is correct. Electronics do contain some amounts of various precious metals, so whatever you can get from recycling is its value should the main purpose become obsolete.
yup and yup. i never said your logic was incorrect. and yes the multi-use refers to alt coins. but there are other uses too. for example, say you needed a way to use excess electricity. or another example, you could heat a space with crypto miner equipment.

and wow, forgo, i always suspected satoshi was a secret agent. never heard that definition before. thanks.
 

Stefan 008 Bond

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Bitcoin is not "backed" by the cost to create it. That money is spent and the energy turned into hot air and dissipated into nothingness. Bitcoin is backed solely by demand, and is created because bid prices exceed the cost. The same applies to precious metals, which cost money to extract from the earth, which is done only because the cost is covered by demand. Metals just have the added advantage that there are other uses for them than merely as currency, and this is what really "backs" them. This is the only way to have a currency which cannot fail.
You havent zoomed our far enough.
What you wrote defines everything that has value in the history of the world.
Demand.
And the part your not seeing?
Why is their demand?
Because it provides a service, a utility of some sort.
Bitcoin most certainly fits this description so is indeed backed.

And LOL @ Forgo...I dont even know where to begin...
Try sending more than 10k US internationally sometime...
 

Stefan 008 Bond

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The meaning of Satoshi Nakamoto can be loosely interpreted as something that pertains to a highly organized and intelligent agency. Go ahead use it all you want.......
This is such a stetch and its sad when people jump at the worst possible translation.
First if all, it would be: intelligence central in translation not central intelligence.
But there are many many other possible translations.
Satishi Nakamoto Most roughly means enlightened, origin or root

But here is another direct translation for you:

A clever chronicling of history as a book that is in the process of happening and throughout (all nodes).

Satoshi actually translates more towards enlightment and wisdom than intelligence...(not the same things!)
 

Stefan 008 Bond

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This hardware has no use other than crypto mining, therefore the logic is correct. Electronics do contain some amounts of various precious metals, so whatever you can get from recycling is its value should the main purpose become obsolete.
This isnt entirely true. If your talking about bitcoin then yes (it is now necessary to have ASIC (application specific) miners. But it didnt start that way.
But there are many other crypto!
Ethereum you need to have a nvidia or amd GPU (and we know these have other uses)
There also proof of stake models to secure some blockchains. Proof of stake requires money invested. (And we know money has other uses)
For BAT tokens, they only generate when users warch ads on the internet...
And on and on..
Its the blockchain tech behind all of this that everyone needs to pay attention to.
 

San

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This isnt entirely true. If your talking about bitcoin then yes (it is now necessary to have ASIC (application specific) miners. But it didnt start that way.
But there are many other crypto!
Ethereum you need to have a nvidia or amd GPU (and we know these have other uses)
Non sequitur, or "this doesn't follow." That there are tools (common computers with GPUs) which double as mining hardware doesn't qualify the non-cryptocurrency-related value of these tools as support for cryptocurrencies produced with them against devaluation by lack of demand. With metals it is their own demand for other purposes, i.e. the product itself, not the tools of production, which lends support.

There also proof of stake models to secure some blockchains. Proof of stake requires money invested. (And we know money has other uses)
And this money...? A bubble of air resting on another one. This isn't the place for a treatise on fiat currency, but it all comes down to trust. The concept of "legal tender" is treated differently in different countries, e.g. in Germany it is enforced which means as a vendor you cannot refuse to accept it as payment, which guarantees that you'll also get rid of it again when paying for stuff yourself (and this expressly includes cash -- unlike e.g. Sweden). The value or buying power is a different matter altogether, let's make this short by remembering what happens to dollars, euros etc. over time, all the time, and every time in history. This happens not because of lack of demand, but by oversupply. And where that comes from is a can of worms even just to study.

Bitcoin actually addresses this by suggesting its fixed supply makes it similar to gold. But this is not what we will get when governments adopt some form of cryptocurrency. Folks who hope for this to solve all problems in money theory are hyped and deluded, and on top of all blind to the reality of power politics. As said, I'm not anti-cryptocurrency. It is a great invention. It's just the observation that politics will turn every good thing into its opposite so better don't get your hopes up.

This guy knows a thing or two (start at 4:19)...
 

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So your saying that gpu and computers dont have other demand other than mining crypto?
Yet metals do enjoy this double value of being a store of value as well as being demanded industrially? Im having trouble following your logic here.
Proof of stake "value" can come from anywhere, cash or gold etc. Your attempting to unravel the entire foundation of monetary discussion if your going to say everything is a bubble on top of a bubble on top of a bubble. If you go that route you could argue gold and metals are a bubble too (and everything else)

Your concerns over govt mishandling are your own and seem to take the worst possible outcome as fact.
First of all, bitcoin isnt solving any fiat currency problems in any country, it offers a more nimble version of gold as a store of value.
Govts will create their own soverign cryptocoins.
But there will be a larger landscape of crypto verified assets.
The biggest thing about blockchain is that it allows a "trustless" and "decentralized" network to be immutable and verifiable.

Bonus material:
Have a look at whats going on in De-Fi...
Your welcome.
 
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