Will Hyperinflation make filing BK unnecessary

[dakota112]

I am beginning to think that my filing CH7 BK soon might be unnecessary given the probable severe hyperinflation that we will as a nation soon be facing. This will wipe out the value of almost all people's assets and currency. Theoretically if you had the courage to file when a loaf of bread will cost you $60.00 today and $90.00 tomorrow, I think the filing could be done in mass for the whole country.

[Faust]

No, we are actually in a period of deflation right now. Core consumer prices are at an artificial standstill right now ONLY because of gov programs like unemployment insurance and the COBRA subsidy, which just barely allow the US consumer to continue purchasing anything. Without those things we would be in a real world of sh** right now and core consumer prices would be through the floor.

Inflation is about as likely as a pink unicorn flying out of my rear end right now. Look for it's return when the jobs come back, which isn't any time soon.

[JRScott]

It is likely that hyperinflation could start as early as late 2011 or early 2012. The inflation will be caused by the tremendous increase in printing money just like it was in the 70s, only this time they did the printing by several factors of that. It is a very real danger and possibility.

I don't think though that you should delay a bk if you need one on that grounds though.

At the current rate yes Congress may have to bankrupt the federal government in about the next decade or two, unless they can learn to control their spending, say no to the wants of the people and concentrate only on the needs.

[PacificBlue]

The economics of America (the lack there of) was not controlled by the hands of the American people (the little folks) that are trying to just get by. Most of us, gave up trying to get ahead, and when some of us did, it was wiped out in a matter of hours (thanks wall street, large banks, and crooked people).

Way back a friend of mine family owned a dairy farm. The government paid them NOT to produce dairy products so to keep the price UP. Some people at that time couldn't afford milk, or cheese, so the government started the "the great American cheese give away". HUH? WTF?

Industrial America is bankrupt, America's government is corrupt, American banks (and non American banks) are using us all as stepping stones (and corrupt) Wall Street could give a rats backside if Joe person has a dime to live on for retirement, or cares about the cost of what it takes to eat, and live and we the people are getting it from all sides.

Until the worthless SOB's in congress are removed nothing is going to change, or get better. They are corrupt by $$$$ (or LARGE GIFTS) that is fed to them via the people that are in control. America... the best congress money can buy.

I don't take one ounce of responsibility for the mess America is in, or put us all in. I bought new cars every 4 to 5 years, I paid my bills on time, I paid my taxes, I had a retirement nest egg, I had a house, and I was not costing America anything, or contributing to the mess we are in now. The reverse can not be said.

When I put America I don't mean this beautiful country of ours that cost the lives of those that defended her, stood up for her, and cared for her. I mean the worthless POS's that .... Ummm.. too much (((caffeine))) this morning, I really need to cut back.

[dakota112]

This crazy childish game of printing money is going to rapidly get out of hand and will be the catalyst for real panic on the street with so many monopoly dollars chasing the few obtainable goods and services out there. I can't tell you when it will happen but it will and you won't want to be on the streets when it does. It will get ugly. Our bankruptcies won't have much significance in the overall realm of reality.

[Kansas1960]

Ron Paul said it best today on MSNBC Morning Joe

http://www.ronpaul.com/2009-12-16/ron-paul-reacts-to-ben-bernanke-as-time-person-of-the-year/

[JustFileSuit]

[QUOTE=dakota112;360492]

This crazy childish game of printing money is going to rapidly get out of hand and will be the catalyst for real panic on the street with so many monopoly dollars chasing the few obtainable goods and services out there

.


Not likely. Keep in mind that the majority of US paper currency is actually outside the USA. It is used as a prime currency in many countries. E.G. if you buy a house in Argentina then you pay for it in cash with US Dollars - as an Argentine. Incidentally the biggest source of "new" currency in the pool of paper dollars is what is manufactured by North Korea. They do this both to undermine the arch-enemy the USA and to finance their bankrupt economy. [Incidentally, their forgeries are seriously high quality.] Right behind them are forgers in the Baltics and the Ukraine (and Russia). they seem to print much more than Washington does as overdrafts and still the Dollar has remained stable.

SO: the bigger risk is a substantial deflation - or possibly the stagflation that we saw in the seventies. Either way, the currency will be vastly devalued against the Euro. Last time I was there, a cup of coffee at the train station cost me seven bucks. Now that is a devalued currency!

Further note: the very rich really like depressions and deflationary pressures. reason: life is good if you are rich and deflation sets in. The servant class becomes docile and you get personal help on the cheap - chauffeur, butler, cook, maid, it all starts to cost what they pay in Latin America. And the boatyard workers demand little pay for those fancy yachts. Now you know why gorgeous autos like the Deusenberg were built during the Depression - the workers got zip for their labor, and had to take what they could get just to eat. Just lovely.

[dakota112]

The dollar won't stay down forever and when it begins to rise in value, watch out and get out of the way. Hyperinflation will come and it will be a sad day here. Social unrest, riots, fear for ones safety and that of their family. Money is just that. It doesn't buy peace and happiness. This is one big mess we are in and I just don't see Baraq Hussein getting us out of it. I just feel he only cares about himself and the several thousand member co-conspirators closest and most connected to him. He really has done zilch in the past one year for the common man and woman out there. He is not guided by decent morals or values. His finger is always up in the air to gage the the direction and strength of the wind. The buck does not stop at his desk, it stops as always at George Bush's desk. Ha! I wish a merry christmas none the less to all these great americans:
Obama, Axelrod, Emanuel, Pelosi, Reid, Schumer, Franken, Boxer, Barney Frank,CEO's of Goldman Sachs, Citi Banl, BOA, AIG, Morgan Stanley, and all the other "little people" out there.

[JustFileSuit]

The US Dollar is not going to rise in value against other currencies any time soon. The US Congress is not going to deal effectively with the deficit problem and with a 5 trillion overhang we have too much debt for the currency to appreciate as against the Euro. So expect a 1.50 exchange rate for the next several years. Before you dump too much against the current administration, do remember that they did inherit this mess from the positions taken by the previous administration. Meanwhile, the paralysis that passes for normalcy will prevent any realistic attack on these issues.

I would point out that what has made the US prosper, and will continue to do so in the future, is the amazing ingenuity and industry of the Americans. They are able to be innovative not because of Washington, but in spite of it. Think of DC as a huge parasitic drag on the industriousness of the rest of the country; yet, amazingly,the country continues to move onwards. that is a real tribute to the average American.

[JEM]

The US Dollar is not going to rise in value against other currencies any time soon. The US Congress is not going to deal effectively with the deficit problem and with a 5 trillion overhang we have too much debt for the currency to appreciate as against the Euro. So expect a 1.50 exchange rate for the next several years. Before you dump too much against the current administration, do remember that they did inherit this mess from the positions taken by the previous administration. Meanwhile, the paralysis that passes for normalcy will prevent any realistic attack on these issues.

I would point out that what has made the US prosper, and will continue to do so in the future, is the amazing ingenuity and industry of the Americans. They are able to be innovative not because of Washington, but in spite of it. Think of DC as a huge parasitic drag on the industriousness of the rest of the country; yet, amazingly,the country continues to move onwards. that is a real tribute to the average American.

Ya, that argument is getting old. Much of the mess our country is in goes back farther than "the last 8 yrs".

[Faust]

Ya, that argument is getting old. Much of the mess our country is in goes back farther than "the last 8 yrs".

The truth gets old?

[JEM]

The truth gets old?

Blaming it ONLY on the last 8 yrs does. As I said, MUCH of the issues we are facing go back farther than George Bush.

[JustFileSuit]

Blaming it ONLY on the last 8 yrs does. As I said, MUCH of the issues we are facing go back farther than George Bush.

All true. of course. George is actually quite a lot smarter than the press makes him out to be (I know him well). I was asked to be a nominee for a Cabinet post but decided that Washington was in such a mess that nothing I did would have a substantial impact, so not much point in getting into it. Perhaps an error in hindsight; the guy that took that post did a lousy job. A big part of the DC problem is that the people who run the administrative outposts (the cabinet divisions) were (probably still are) ideologues, and not pragmatists. Look at what happened to Paul O'Neill. Makes me shudder.

Since the administration remains in paralysis, I am not optimistic that the US Dollar is going to rise against the Euro, or most other currencies, any time soon. that will keep capital in-flows negative and continue to chip away at the nation's financial security and viability. But it also should keep inflation away.

[banca rotta]

No, we are actually in a period of deflation right now. Core consumer prices are at an artificial standstill right now ONLY because of gov programs like unemployment insurance and the COBRA subsidy, which just barely allow the US consumer to continue purchasing anything. Without those things we would be in a real world of sh** right now and core consumer prices would be through the floor.

Inflation is about as likely as a pink unicorn flying out of my rear end right now. Look for it's return when the jobs come back, which isn't any time soon.

I thought this too and realized that when the rest of the world tosses the greenback in the trash especially the oil rich nations how much do you think a tank of gas will be?

How much do you think everything else will be when the cost of a tank of gas inflates through the ozone faster then the co2 coming from Al Gore's limo exaust.

When hyperinflation hits you will see the debtors carrying loads of debt do the happy dance even without a bk discharge and the savers crying.

[banca rotta]

I also want to thank the OP for this one.


Too many here debate over govt healthcare, free college paid for by the govt, free utility and medicine subsidies for the poor and elderly.

I am not disagreeing with you because I think you are wrong and stupid. You all have your hearts in the right place caring for your fellow man.

I disagree with you all because the US is going to face a default and hyperinflation to shortly follow. The same folks you all want to help will either starve to death or freeze to death, whichever comes first and we all don't want that to happen.