Karl Denninger - Slope of Hope Interview - Part 4

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Category:

News & Politics

Tags:

• karl
• denninger
• tim
• knight
• finance
• investing

[Jyoyo1]

Regarding taxation

If the US gov wakes up, then it's possible they will try to encourage gold trade (and vital gold imports) with low taxes on gold - rather than the opposite (driving gold underground or to leave the country). Favoring a market for gold in a hyper-inflation might be the only way to bring in tax revenue (preferably in gold). In a hyper-inflation real tax revenues crash for many reasons. People trapped in a collapsing paper system stop paying taxes.

[Jyoyo1]

You need something tangible to ride out a hyper-inflation - not a derivative.

If we go "deflation" then it's likely to be one measured in gold - not dollars.

A shortage of dollars or a dollar with strong purchasing power in a country dependent on imports is absurd. He ignores the growing global revolt against the dollar system of tribute to the empire. It cannot last when trust/confidence is lost.

Yes, we will be in depression but don't count on the dollar to buy much.

[Jyoyo1]

Karl's a smart guy but his inflation/deflation strategy is flawed.

A hyper-inflationary event is currency destruction, civil and institutional destruction. Karl will lose on his cash AND lose on his LEAPS either through counter-party risk or taking his LEAPS "profits" in cash - worth less the next day. And taxes on his LEAPS cap gains will likely be as heavy as elsewhere. At least with physical metal you can choose if/when/how to sell to sustain yourself.