Rick Rule: Stay Liquid

[Girlsk8er554]

gfb

[Krampfarsch]

america had its economic best times under a goldstandard

fiat money always gets back to its real value (zero)

[overseachininadoll]

I feel the same way too. Gold's bad news to the world. If ever whenever Gold rules, it'll be the world in which you don't want to live in. Forget about Gold.

[pretorious700]

@overseachininadoll like you have a choice

[sinitskyd]

How is deflation possible in the case of money supply increase? I really do not understand this... Does someone take the existing money and burn it in the oven?

[CrackerJackLee]

WIKIPEDIA - liquidity trap: when the Nominal Interest Rate has been lowered to zero to avoid recession, but the liquidity in the market created by these low interest rates does not stimulate the economy to full employment. any further increase in money supply will not stimulate the economy any further because any further injection of liquidity will no longer lower the NIR, as it cannot drop below zero. This situation can lead to price deflation, which will make a recession even more severe.

[sinitskyd]

But if they print new money, it has to go somewhere... I am not talking about credit created by the banksters via fractional reserve banking; I am talking about money created by the central bank. In short term we can have some more price drops, but it seems we are on a path of currency destruction within a few years...

[CrackerJackLee]

i'm not economically educated, but supply and demand also applies to money. if they print more money it's not worth as much, hence inflation. we are led to believe that the newly printed money was given/lent to the banks. apparently they now have it. it's not in circulation unless they lend it. sounds like pretend solvency. i owe a hundred dollars but i have $100 in the bank so i'm solvent? (as long as i don't withdraw and pay) or i'm broke!

[CrackerJackLee]

unless china keeps buying the dollar to keep their previous american investments from falling flat. then the value of the dollar is maintained by china. the whole thing sounds like voodoo economics!