<orangatang1@[EMAIL PROTECTED]
> wrote in message
news:4739712c-b2d4-4473-b820-df3b5fe104ec@[EMAIL PROTECTED]
> On 11 Mar, 15:43, "John Galt" <whoisjohng...@[EMAIL PROTECTED]
> wrote:
>> <stuff_st...@[EMAIL PROTECTED]
> wrote in message
>>
>> news:171et3di4lsljdm74hnvqb93d00br6s2mt@[EMAIL PROTECTED]
>>
>> > On Tue, 11 Mar 2008 16:47:34 -0500, "John Galt"
>> > <whoisjohng...@[EMAIL PROTECTED]
> wrote:
>>
>> >>What the Fed is doing now and what they did then could not be more
>> >>different.
>>
>> > Except it's not. It's created a whole new entity to loan money out
>> > with bonds as collateral. But the bonds are about 50% over rated.
>> > They're trading good paper for bad. This is not going to end well.
>> > IMHO.
>>
>> 1929 was a tight money Fed policy. Today is the opposite. Not the same.
>> Today, the goverment is going with loose money and as you point out,
>> absorbing risk. Today the exposure is topped at 200B, but since they're
>> only
>> taking the AAA stuff (yes, I know....), one would *hope* that losses
>> won't
>> top a point or two while restarting the credit market.
>>
>> If the taxpayer can restart the markets at the cost of 4 to 10B, it's a
>> bargain. Should have done that instead of the 150B rebate.
>>
>> JG
>
> yes and hyperinflation is much, much worse than deflation. everybody's
> pension and savings are wiped out. society breaks down. i'm guessing
> you've read the post on frugalsquirrels by the guy in argentina. this
> is his advice -
He's right. Here's hoping that the FEd eases by only .25%.
JG
>
>
> "Having gone through a shtf scenario myself, total economical collapse
> in the year 2001, and still dealing with the consequences, 5 years
> later, I feel I can answer that question. YES, you need a gun, pepper
> spray, a machete, a battle axe, club with a rusty nail sticking out of
> it, or whatever weapon you can get hold of."
>
>
http://www.frugalsquirrels.com/ubb/ultimatebb.php?ubb=get_topic;f=49;t=000074
>
> how close is the us to hyperinflation? well inetrnation accounting
> std 29 says hyperinflation is when
>
> " - the general population prefers to keep its wealth in non-monetary
> assets or in a relatively stable foreign currency. Amounts of local
> currency held are immediately invested to maintain purchasing power;
>
> - the general population regards monetary amounts not in terms of the
> local currency but in terms of a relatively stable foreign currency.
> Prices may be quoted in that currency;
>
> - sales and purchases on credit take place at prices that compensate
> for the expected loss of purchasing power during the credit period,
> even if the period is short; and
>
> the ***ulative inflation rate over three years approaches, or exceeds,
> 100%."
>
> http://www.iasplus.com/standard/ias29.htm
>
> the us is heading that way fast.
>
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