Quote:
Originally Posted by Lulu101
If we are having deflation, how can we have a run on the dollar at the same time?
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Hi Lulu01,
You can't. That is why some people have not enjoyed my posting style which is to dare to disagree that the dollar is worthless paper. If it were, then I could stop paying taxes with it and not end up in jail. The society around you determines the currency. If someone was panning for gold in 1849 is he richer than the man with six shots of lead stealing his claim, or FDR who said give us your gold or face 10 years in prison?
Here we see gold, silver, oil, real estate all dropping. Wages are following. As of now, the only run on the dollar is those running to it. Hyper inflation is ,as of now, speculation for the future and, as I have said, it might happen if our government wants it to happen just like gold could be worthless, if they want it to be. Its simple, slap a 95% cap gains tax on gold, confiscate it, what ever. The world deals in lead currency and the Fed has quite an arsenal.
Going to a fractional reserve gold backed currency is a nightmare to the utmost as I would rather pay an inflation tax than go into foreclosure. Once gold is loaned up from its fractional fluff, the currency could never grow beyond that point and we would have endless inflation depression cycles.