What Caused Deflation At The Beginning Of This Crisis?

[cultech]

thanks

[GoldSilver588]

When a massive amount of videos on youtube screaming for inflation since last year, I kept telling we will NOT see any inflation, instead we will have another at least couple years of deflationary. I wouldn't worry about inflation now at all, as going through the upcoming deflation would be the toughest time in human history, if we ever survive from it. Keep lots of US paper money (as that's going to be the KING), and keep our fingers crossed fellows.

[JOHNNYH8STHENWO]

Good video. That gives me a further understanding of deflation.  Thanks.

[johnTconover]

I agree but (in my opinion) we have only just witnessed the beginning of a deflationary spiral that has only been slowed by massive worldwide stimulus/bailouts. I hate to sound like a doomsayer but to me its obvious. No ammount of QE or credit is going to re-inflate the outrageous debt fueled global bubble, not without the creation of productive jobs on a massive scale and what are the odds of that? And lets not ignore the effects of non OECD demand on energy prices. Depression 2.0 ;-) 5 stars.

[maggoli67]

Agreed on the debt issue. Some people, like Lyndon LaRouche, advocate a national credit policy to replace the Federal Reserve, as if that would get us out of the fiat currency situation we find ourselves. The only benefit (and it is a large one, admittedly) is that there would be no interest paid into the system unlike the Fed situation. That's based on my limited understanding, anyways.

[johnTconover]

Either way there can be no fundamental reform until the present credit driven infinite growth model has imploded. Its like painting over rust. The world needs to be cleansed of its toxic debt. What scares me is that the capitol needed to rebuild and reform will be provided by the very people who created and continue to profit from this nightmare. Its clear that the "new economy" will be based on a global carbon standard. The implications of that keep me awake at night. Anyway, good luck mate.

[maggoli67]

Thanks, you too.

[XonixRogotta]

I like your analogy: "It's like painting over rust." It's true, it's also just like saying: "sweeping dirt under the rug." You also bring up a great point, nothing will change because the very people that caused this mess and profit from it are all still in power whether it be a politician or a CEO.

[johnTconover]

John Williams from shadowstats has recently announced that in his (well justified) analysis, hyperinflation and economic collapse is imminent in the coming decade. I agree but still stand by my view that further deflationary pressure will be the trigger but yeah, at any rate no broom is big enough to sweep away this mess. Many outsiders believe Americans are stupid and gullible but I beg to differ. The coming breakdown may awaken the revolutionary spirit that built America, Time will tell ;-)