Anonymous ID: 1e7d74 April 20, 2020, 8:52 p.m. No.8869949   🗄️.is 🔗kun   >>0052

>>8865251

 

I agree with the specifics of most of what you just said. Your analysis is logical but full of flaws and lacking in imagination and full understanding. The Trump team has a plan based on more IQ points than you are giving them credit for. The crash wasn't part of it. But they'll find a way to roll with the punches without a doubt. In the end, this will be the first MAJOR mistake made by the cabal, but I'm not going to attempt to prove that argument here. Instead I want to address the root of your mistake.: We don't have to back all the trillions of US dollars already floating to create a new gold standard. That's a major logical fallacy.

 

There are multiple ways to overcome the problem presented by trying to switch back to a gold standard using the metrics of yesterday. One way would be to increase the number of US $ required to equal an ounce of gold - Another would be to create a new currency defined as a multiple of our current US Dollar and then use gold to back that currency. Another way would be to have the corporation of USA declare bankruptcy and then reinstate itself legally as USA 2.0 with all the same legal structures but with a newly defined currency and a default on our current debt to the central banks as payable in US 1.0 dollars which are then obsolete. We could in that case agree to selectively honor our debts with trading partners with the more valuable US 2.0 dollars by trading them at a specific ratio for their holdings of US 1.0 dollars (all under the pretense of emergency Coronavirus measures of course).

 

I'm not an economist, and yet I can think of several other possible alternatives as well, which means the geniuses behind the man behind the curtain certainly can as well. The collective brainpower of the teams at work here is nothing short of astounding. There is no question that they can find a solution that is perfectly functional and that would have the opposite effect in the long term. Once established, the new currency would enter a permanent deflationary period. There would be no more inflation again ever, as the total currency in existence would become fixed but the demand of the population would continue to grow along with the population. At which point dollars would become more and more valuable.

 

You are correct that short term hyperinflation will damage your holdings in non tangible assets, but that could easily just be temporary. On a 10 year timeline, the pent up demand could trigger a speculative cycle of expansionary business investments that lead to producing more goods using the easily available liquid funds from all the low-interest money lending. The ability of entrepreneurs to produce could outpace the inflation IF the spending is being wisely invested into true economic stimulus, especially if investors are anticipating lowered taxes and easy access to low interest loans. Long term money holding should always be considered in the context of 10+ years anyway, so this isn't so terrible as the inflation levels out instead of going logarithmic as in the case of economic shutdown.

 

The federal budget deficit from tax cuts can be made up by the government buying and holding stock from bailed out companies instead of giving them handouts so that the "rescued" companies would be owned in part by the american people. Trump has already hinted strongly at this. Instead of rewarding bad behavior as Obama did with his bailouts, this strategy would effectively undo what greedy corporations have done by investing 100% of their profits back into buying up their own stock to devalue the portion owned by the public instead of saving for a rainy day. It keeps corporations from having their cake and eating it too

 

In conclusion, the restructuring of the FED and the defaulting on our current loans could more than offset any inflation caused by money-printing for the collective economy, if not for every investor or individual. There will be losers in such an event, and those will people who have large holdings of liquid cash assets.

Either way, I strongly agree that we will see an inflationary period in the near future, and that buying hard assets now or real estate would be far wiser than holding on to chunks of cash.