$10,000,000,000,000 may be necessary to stop deflation......

[88888FORCE]

$10,000,000,000,000 may be necessary to stop deflation......

August 17 ,2010 Great Video-Government Mortgage Relief

1-800-270-2928

[88888FORCE]

$10,000,000,000,000 may be necessary to stop deflation......

August 17 ,2010 Great Video-Government Mortgage Relief

1-800-270-2928

[solvssod]

what is also mind blowing , Is there is not enough money in cirulation to pay off the national debt

[rolficus]

@solvssod that money in circulation is a part of the national debt it has been borrowed off the rest of the world

[sirellyn]

Inflation is just as devastating as deflation in similar amounts. The benefit of deflation is that it encourages saving (which is good) inflation encourages borrowing, and ultimately helps the rich.

Extreme cases of either are never EVER good. But 3% deflation a year would "hurt" us as much as 3% inflation has over the last couple decades.

[robertcgage]

I use to be a Truck Driver for 16 years, before my knees went. To give people some sense of what a Trillion Dollars is. It would take @ 250 18-wheelers just to hall 1 Trillion in $100 bills. The weight of such a mass would be @ 10,000,000 lbs.

My question is why would we wont to stave off deflation? The US has been living in a bubble from the early 80's. We need to deflate to bring strength (ie. value) back to the dollar. But the middle&lower classes might gain from it & we couldn't have that.

[dorcolac88]

@robertcgage how much is that in kg ?

[robertcgage]

According to Google that would be 4,535,923.7 kilograms of $100 dollar bills.

[flaskofcoffee]

Dear Matthew.

On July 14, 1969, David M. Kennedy, the 60th Secretary of the Treasury, and officials at the Federal Reserve Board announced that they would immediately stop distributing currency in denominations of $500, $1,000, $5,000 and $10,000.

Actual production of these denominations stopped during World War II.

They are, however, theoretically available to pile high for the purposes of this video... which is good enough for me, if not for a scholarly type such as yourself.

[strategalutions]

The USA used to issue a $1,000 bill, but they pulled it from circulation and only issue $100 or less now. I don't trust any calculations by GS--they are the ones that said oil would hit $200/barrel--only because they rigged the market. The author was right to call GS the root of all evil and partially blame them for the mess.

[starmaYker]

Except for when Bill Clinton was President, the US National Debt has always been in the TRILLIONS!

[willwillp]

...umm yeah because Bush Sr. raised taxes before he got voted out for it.

[ehswan]

Excuse me those figures must be a round down. I've got it wrong. Would someone who is moderatly numerate please figure how long it would take at $1,000 dolars a second to spend a trillion dollars.

[ehswan]

Can you imagine spending $1000 dollars in one second? Can you imagine spending $1,000 a second 24/7 all year round for 30 years? Well, that is what you would have to do to spend $1,000,000,000,000 (one trillion dollars). To spend 10 trillion dollars at the rate of $1,000 dollars a second would take you 130 years. If you can rap your mind around spending $1,000 dollars per second 24 hours a day 7 days a week 52 weeks a year for 130 years. Then you get how much money $10,000,000,000,000 is.

[pismo10]

The govt is destroying this country, as always happens in history. This would simply make thing s worse. More central control, more central planning, more central micromgmt of the economy.

The govt caused the problem we are in now and will make it worse the more they meddle.

[SilverRose09]

USA dollars has to decline 80% against the Chinese RSB in order to be competitive

[SilverRose09]

Hello,

I need your opinion. I have a piece of land. It is in a very turistic area in Monterey CA. It is not a city. Mostly farm and turism. Do you think it is too risky to get a construction loan for 200K and build a small 2 bedroom place and try to get a fixed rate before the hyperinflation hits? Selling is not an option as the price of the land is undervalued now and I own the land 95% free and clear. I am sad that you last video iabout contango is not there anymore.

[flaskofcoffee]

Hi SilverRose. Sorry to say I don't have any useful advice to give regarding your land. Hopefully someone else can help.

The Contango videos are still there , by the way. Maybe youtube was just having an 'off-day' last time you tried. It happens sometimes. Best wishes.

[herbs814]

California is so overbuilt, it's doubtful you'll get a construction loan... and if you can build a loan on credit, it's doubtful you'll find a tenant. Housing prices will continue to fall, especially for unoccupied housing.

California taxes will necessarily rise soon -- there is not enough political will to cut govt budgets. Cali will either raise its income tax (one of the highest in the country) or overturn prop 13 and raise prop taxes (causing house prices to fall more). I would sell.....

[herbs814]

There is no guarantee that we will get to hyperinflation. GS predicted that we may remain in deflation without 10trillion in new money creation... in which case, savings and income are at a premium and debt is to be avoided. Get out from as many bills as you can, including loan payments and property taxes and maintenance on real estate.

Since you've paid off 95% of your loan on the land, you shouldn't be upside down on the loan (and I would assume you own your primary residence free & clear)

[SilverRose09]

My axes are high now as I bought it at the peak....I own a house in Texas with a 100K loan. I guess you are right. I should instead try to paid my principal home first. Income as you know it is never secure....I like you I see deflation only....but food and goods are getting more expensive thought....it is a hard battle...Thank you again for your e-mail sometimes we are just in denial....

[herbs814]

even selling at a loss if necessary may be beneficial. federal and state income taxes subsidizes losses... avoiding property taxes and loan payments and maintenance costs will free up income....

California has one of the highest unemployment rates in the nation. How secure is your income? how secure is your potential tenants' income?

reducing expenses may be as important (or more) rather than seeking to raise income in an economy in which incomes are falling and velocity of money is slowing.

[SilverRose09]

Thank you for your e-mail. Yes, you are very right....I hurts just the thought to have to sell it at a loss....it is a very precious piece of land...I had a dream to be able to move there one day. This dream is getting farther and farther away.

[herbs814]

I've learned the hard way that using debt to make purchases is a sure way to accumulate more stuff than you know what to do with.

Landlording in California is hard enough... it's even harder when you live in Texas.

Talk to an Endorsed Local Provider for real estate and get out of long-distance landlording:

daveramsey . com/sa/realestate

[marshall2411]

@SilverRose09 I am interested in if you bulit your place??

[exzonerator]

It's a mega-deflation in making.

[SilverRose09]

China is supporting USA because it is not of Chinas' best interest for the dollar to go down. My question is until when this support will continue? I believe will be until China has already secure the real assests and commodities contracts with best interest in their favor. The longer it last the better for China. What do you think?

[flaskofcoffee]

One reason I bought oil (via the USO fund; there's a video on the channel) was a guess that China would start to buy beaten-down commodities with their new dollars instead of U.S. debt - accumulating something tangible they can use, instead of more paper debt to worry about. I imagine that will continue while commodity prices stay down in price.

[herbs814]

China is making arrangements with eurozone and BRIC and OPEC nations to ensure that it is no longer prohibitive to let the dollar collapse. Once China is able to procure commodities in euros, RMBs, or rubles, or even gold, China will not need to subsidize the dollar any longer.

[SilverRose09]

Wow, I wonder for how long can they accomplish that?

[dannydarias1]

@SilverRose09 Your assessment is totally incorrect. They are not "supporting" the dollar. They buy treasuries because they have to if they want to sell us products. The day they we no longer buy products from them, the day the buying stops.

[SilverRose09]

@dannydarias1 ...and...What is going to happen then?

[dannydarias1]

@SilverRose09 What happens is they won't need to export to the US. That is almost impossible to happen soon though. Do you think the Chinese are going to go from being frugal to spending like Americans overnight? What will happen eventually is that they will start importing from the US and the world, in which case we will be buying their treasuries and exporting to them.

[flaskofcoffee]

Hi Nick. I wish I knew.

However - maybe the thing to watch is Iran's success with its oil bourse (exchange) trading oil in currencies other than dollars.

Saudi are talking, but Iran is acting.

The U.S. are trying a different, softer, approach with Iran now that U.S. ability to wage war is diminished by economic weakness, but the bottom line remains.... "Please don't kill the golden goose of our reserve currency status". All they've done recently is drop the final "...or ELSE!".

[rangeyer]

The FED reserve is run by stupid fucks!!! Bernanke is a flaming idiot

[axostech]

Harsh but maybe true, Jim Rogers basically agrees to that statement, he also isn't a big fan of the IMF..

[thereallurker]

Actually, we could make a pretty good space elevator with all that cash.

[axostech]

Well the basics is that our currency is -$14T and if Obama just printed $3T then clearly we'll need more.. BUT didn't Goldman Sachs underestimate the 10:1 banking induced inflation AFTER the funds from the fed are made available??

[flaskofcoffee]

Questions are;

1. Will the cash find sufficient viable customers and leverage back up to overcome the winding down of previous excesses? On its own the cash is chicken-feed, only with leverage can it overcome the 'great unwinding'. Do we have the stomach for more leverage, yet?

2. If so, can the Fed pull back the monetary reins before inflation takes off?

3. If not, and deflation continues, what next?

4. The big one...... will the dollar lose reserve currency status from OPEC? Kaboom!

[axostech]

So given the current situation, what is a viable solution? (if you were the Fed for example)

Reducing the global economies by 70% to a gold standard immediately seems dangerous if not naive

-Dave..

[SilverRose09]

Thank you for your video.  My question is do you think a new currency will occur in the near future, and if that would happen how much will be the following equation:

1,000 dollar = 1 new currency= ? gold