More from Hypertiger

"Due to Bretton Woods the global trade medium of exchange was made the US Dollar in 1944...

A large portion of Chinese taxpayer dollars are US dollars that US consumers give the Chinese for all the stuff the chinese make and export to the USA...

The USA is the largest consumer on the planet...The single biggest customer...If the USA goes down...China collapses like a house of cards...

"We bash them publicly, but behind the scenes we go hat in hand seeking their help."

The Chinese bash the US publicly as well...Both fool their populations into thinking that they are independent nation states...Since both require nationalism to maintain control over their domestic populations...

The USA and China are just huge economic zones within a centuries old Global economic empire based in Europe.

Prior to the 1933-1945 bankruptcy reorganization of the Global system...The British had the same arrangement with China and the British Pound was the global trade medium of exchange...

"For a more in depth analysis of the tenuous position of the Americana economy and U.S. dollar denominated investments, read my new book “Crash Proof: How to Profit from the Coming Economic Collapse.”"

Peter Schiff is riding in the same car speeding towards the brick wall that we all are...It's not crash proof unfortunately.

It's like signing up people on the titanic for life insurance and then drowning with them...


The only persons that can reinflate are consumers...desperate consumers requesting commercial banks to manufacture greater amounts of money...greater amounts than previously...

Inflation greater than previous inflation to maximum potential...

If the consumers fail to request the required amount of money to be manufactured by the commercial banking system to sustain inflation greater than previous inflation to maximum potential

Then maximum potential will have been reached...At which point inflation greater than previous inflation TRANSFORMS into inflation less than previous inflation to maximum potential...The observation of this phase of inflation is called deflation.

Not borrowing...requesting the commercial banks to manufacture money...But Yes as long as possible or greater and greater amounts to maximum potential...And when maximum potential is reached...Less and less amounts to maximum potential...

So far since the USA became the USA...consumers have requested the commerical banks directly and indirectly to manufacture 46 Trillion dollars...That's the total money supply of the USA...The FED calls it Total Credit market debt...

During the same time...The US Federal Government has approved the issue of 8.8 Trillion dollars worth of bonds and "Borrowed" 8.8 Trillion dollars of the 46 Trillion dollar money supply of the USA...

Or around 19% of it...Durring WW2 the US Government borrowed slightly over 50% of the total money supply to sustain the war effort...

The long mortage rate dropped to 5.360% in 2003 the Federal funds rate hit 0.98% and 1 Year treasuries hit 1.01% around that time...

Volume...at a mortage rate of 4% the one year Treasury would have to drop to almost zero...Like in Japan where the yield on the Japan Premium 3 month Bond hit 0.017% in 1999...

Not because the bank of Japan set rates that way...because there was enough volume to obtain a yield from from rates that low...

Same thing in the USA...there needs to be volume to support lower yield rates...If there is not then rates will have to keep rising in search of a yield...

Like your current income...It's a yield...and if you don't yield enough from your current employment to pay all your bills then you are finished...Inevitably doomed.

You will have to begin cutting back on spending...

Like stopping the buying of real estate for greater prices than previously and start buying real estate for lower prices than previously...

And in the USA...real estate has been the Number one engine driving monetary inflation for the past 36 years..."

Prior to the collapse of the stock market in 1929...Real estate collapsed...a large amount of the money leaving real estate in 1928 headed into the stock market...In search of yield."