Articles NewsFlow Gold & Silver Prices Market Briefing

Recevez notre Marketbriefing

overtheedge
Member since May 2012
680 commentaries - 6 followers

6 followers

has posted a comment on the article :

Hyperinflation or Hyperdeflation?

- Antal E. Fekete - Gold University

"People post(p)one buying indefinitely because they expect prices to fall further. This is hyperdeflation. It manifests itself in the ever rising value of the currency unit. "
The presumption being people have the money to spend.

"This defeats the arguments of Turk and others who try to refute the case for deflation by pointing to high or rising cost of food and energy."
If the people have little to no disposable/discretionary monies after buying food and energy, all arguments fail.

Inflation/deflation are solely monetary events. Hyperinflation combines a monetary event with loss of valuation trust.

Folks, economics is NOT science. It IS philosophy. Trotting out pseudo-theories such a QTM is nonsense and does not provide evidence that economics is a science.
Put down the WSJ and read something on the "scientific method." Outcomes in science are predictable once the theory is developed by repeated testing of hypotheses.

Were economics science, the predictions would always come true. Or the economists are just a pack of liars and NOT really economic scientists. The facade of science lends the economist some measure of credibility when none is due.

Economists trot out history and then misapply it. All history economic data does is prove what didn't work. So any attempt to use historical data as compelling evidence for a new tactic is equivalent to reading goat entrails.

In support of philosophy, you can freely use statistics as a metric. Generalities work most of the time. Exceptions can and usually do exist within any groupings of data sets. And you can always apply the human element; yep, that sudden bout of irrationality that just ain't logical.

Strip away all the mumbo-jumbo, toss out the cowry beads and toss the healing crystals in the garbage and remember this: even dumb animals understand economics. You must consume more than you expend. You can shove a hundred balloons in your pocket until you begin to inflate them. Empty or filled to almost the breaking point, they are still just latex sacks. Popcorn has no more food value to it than boiled corn kernels.

Let's get something straight folks. As go the people, so goes the nation. Not the other way around. You either have some savings or you have non-productive debt. The dumb animal carries its savings as fat. With homo sapiens supposedly having the capacity to remember and the ability to reason, why is their meager savings concentrated around their waist and still in serious non-productive debt?

Inflation and deflation are purely monetary events. If you are broke or nobody will accept you trinkets/tokens or script as payment, you are deflated. The surest way to arrive at that climax is by increasing your quantity of trinkets/tokens or scrip without desired products to support the amount of t/t or s.

All mediums of exchange (money, gold, etc) represent surplus productivity. Debt is NOT surplus anything. Individually managed surplus usually gets the individual through periods of shortages. Commerce is based upon exchanging surplus and has the direct effect of reducing shortages. It keeps the hungry peasants from attacking the manor. Without large in-debt government, there wouldn't be many economists. Perhaps then people would'nt be so brainwashed and be capable of understanding dumb animal economics. No surplus, no survive. So back away from my wildebeast.

Commented 4193 days ago

Send

Beginning of the headline :The reason why QTM fails is that money is not one-dimensional. It is in fact two-dimensional. Quantity is one, and the velocity of circulation is the other dimension. Central banks control the former, and the market firmly controls the latter. As long as fair weather lasts, velocity may be ignored. But as soon as the weather grows foul, velocity returns with a vengeance. If it increases, we talk about inflation. If it decreases, we talk about deflation. In the extreme... Read More

Reply to this comment

You must be logged in to comment an article

8000 characters max.

	RSS feed		24hGold Mobile
	Gold Data Center		Gold & Silver Converter
	Gold coins on eBay		Silver coins on eBay
	Technical Analysis		Fundamental Analysis