Will the massive increase in money cause hyperinflation? I certainly think that high inflation will come when velocity picks up, however, YouTube user ramzpaul makes a good case that given the way our economy is set up, one thing we won’t have to worry about is hyperinflation. For the Austrians out there, it’s worth taking a listen to:
fiat money's archives
Hyperinflation: Myth or Possibility?
Got 100% Reserve Banking on the Mind
There are major advantages to 100% reserve banking. Right off the bat, banking panics are simply impossible. Since every bank has all its money on hand (or its customers aren’t contractually entitled to it at that time), there is no way that a run on the bank will cause a bank to go under. And therefore, large banking crises, such as the one we are seeing today, or saw in the Great Depression, or in the panics of 1819, 1837, 1857, 1871, 1893, 1907, etc. would never happen.
under: Dollar, Federal Reserve, Game Theory, Individual v. Collective, Live and Learn, Trust
Tags: 100% reserve banking, austrian economics, Bank of Amsterdam, banking, banking panic, boom/bust cycle, Carr v Carr, deflation, F.A. Hayek, Federal Reserve, fiat currency, fiat money, financial crisis, fractional reserve banking, gold standard, Great Depression, inflation, Milton Friedman, Murray Rothbard, Paul Krugman
Funny Money Part II or: How I Learned to Stop Worrying and Love Natural Resources
With a failed dollar we’d have far more church-going citizens eager to stockpile communion crackers. And for the altruistic of the local tribes, the communion crackers might end up back in the offering basket.
under: Deficits, Dollar, Energy, Federal Reserve, Game Theory, Individual v. Collective, Live and Learn, Obama Says, Taxes, Treasury, Trust, Uncategorized
Tags: agriculture, altruism, austrian economics, Barack Obama, Bretton Woods, budget deficit, capital, China, commodity, credit, currency, debt, Dollar, Federal Reserve, fiat currency, fiat money, fiscal policy, funny money, G20, GDP, gold, IMF, inflation, investment, liquidity, monetary base, monetary policy, money supply, natural resources, petroleum, printing press, real estate, savings, stocks, Treasury, U.S. credit rating, U.S. government, United Nations, USDA
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