A sign of things to come?

[bibleguy]

Zimbabwe printed a 10,000,000 dollar bill. But it costs 15 million to buy a hamburger there.

With the bailouts and the flood of newly printed money that it will take to fund them, I wonder if massive-, even hyper-, inflation is on our own horizon.



I thought the 10M dollar bill was troubling enough... Then I saw that it had an expiration date! OUCH!

Similar cases of inflation occurred in Germany, Russia, Argentina, Brazil, and elsewhere around the globe. Are we of the assumption that something like this could never happen in America?

(The above picture is from an article which can be found here.)

[Tracy]

Yes, I think it could happen in America, and may. In fact, what you are talking about has been on my mind for weeks now. No one knows for sure what will happen, but it is a possibility I think.

Here is an interesting post to read on a blog. I don't agree with this blogger on everything--far from it. But he is interesting to read...

http://michaelbunker.com/2008/11/questi ... html#links

[Tim Elston]

With the bailouts and the flood of newly printed money that it will take to fund them, I wonder if massive-, even hyper-, inflation is on our own horizon.

Yes, and we should also realize that every bank loan is, in fact, the minting of new money. Banks loan money that does not exist until the borrower signs on the dotted line. That's how the economy "grows" in our present system. And since "growth" is measured as a compounded annual percentage, there is simply no possible way that it can continue unabated. The bailouts were desperation moves to keep loans happening, because without more and more debt (i.e., "growth"), the world's economic system collapses.

New Year's Day is a good day to watch this video: Money as Debt.

[Tracy]

Yes, and we should also realize that every bank loan is, in fact, the minting of new money.

Yikes, I didn't realize that.

[bibleguy]

The story of Joseph mentions a moment in Egyptian history when "money failed" [ran out] (Genesis 47:15). That moment came in mid-September for the United States of America.

As you read on, the Egyptians came to Joseph for a government hand out. But Joseph instead, as a good steward of the Egyptian economy, told them that their possessions were legitimate tender to trade for food. Later, he traded food for their lands and houses, and finally for their own lives, making slaves out of the entire population.

This is the likely scenario we face. The bailouts MUST come with some strings attached. Government control of business is already coming into play, and if Genesis 47 is any indication, the great proverb will be eventually be proven true: “The rich ruleth over the poor, and the borrower is servant to the lender” (Proverbs 22:7).

I fear (not literal fear, of course 1 Timothy 1:7) that the prosperity heresy will be one of the first victims of the inevitable financial crisis that awaits us.

[kurt73]

I fear (not literal fear, of course 1 Timothy 1:7) that the prosperity heresy will be one of the first victims of the inevitable financial crisis that awaits us.

Didn't you know, all you have to do is name it and claim it, its yours

I have to agree with you, there is a lot of prosperity teachers out there that is leading a lot of people astray

[JohnDB]

There is one little fly in your "ointment" at the present.

Commodities, such as land, have been greatly devalued here lately.

copper is a prime example. It, at one time only a couple of months ago, was selling at over three dollars a pound. Currently it is selling at under a dollar per pound. Gold is down as well. There is no "safe haven" of any sort. If we revert back to an agricultual/commodity based world wide economy it will become rather....interesting.
That is what it was for many centuries...

[bibleguy]

Yes, the law set the value of the Shekel, and the price of certain things (like the redemption of the firstborn...), virtually preventing any possibility of inflation. (The price remained unchanged for millenia)

The idea remained when the currency was tied to commodities (i.e. gold & silver), but the dollar has long since been freed from its bondage to gold.

I was stumped by the fall in the price of gold in particular, as usually the dollar's decline is accompanied by the rise in gold. I finally heard the explanation a couple of weeks ago (or more now). It has to do with the hedge funds needing to liquidate, and being heavily leveraged in gold having invested in gold when it looked like there was no end to its ascent. Now their need for money to pay back the debt they had required them to sell the gold. This flooded the market and the law of supply and demand took over.

Gold remains very popular, just there was a glut of it in the market. That sudden influx of gold is tapering off, and we should see gold resume its upward trend.

A lot of the commodities value has been affected by a general fear of the future, and the industrial demand falling. Gold, Silver, copper, et al. have more than just a trade value, but have a large industrial value besides, being used in manufacturing etc. As the manufacturing sector declines, that particular demand falls as well. Platinum was affected by this trend in particular (as I understand).

Precious metal are, have been, and very likely will remain a safe haven. They are never worth zero, and have inherent value (e.g. industrial use) that federal reserve notes can never claim.

[JohnDB]

Platinum is used in your Catylitic converters on every single vehicle that burns unleaded gasoline.

[bibleguy]

I thought things in Zimbabwe were bad before...

Zimbabwe unveils 100 trillion dollar note

[beckrl]

Is that like me writing you a IOU for $100,000,000.

[bibleguy]

Is that like me writing you a IOU for $100,000,000.

try $100,000,000,000,000