QUESTION: Marty,
Is it true to say that…
If we run the printing presses full-bore, then inflate, we will then be able to at least re-boot with a new currency and start again
BUT…
We are on the path of going on the mother of all tax hunts, causing catastrophic deflation and being on a trajectory toward the Mad Max scenario?
In other words, neither are pretty outcomes, but at least with the inflating scenario we avoid having to put on the leathers and pack a shit-load of heat?
S.B. from Melbourne
ANSWER: The hyperinflation has just never happened with any mature government because they have too much to lose even in tax revenues and personal wealth. Revolutions are typically the people who had nothing then seize power. They also know nothing about finance or fiscal management. They print money because they think that will make them rich.
The only viable outcome is the path we are on and that leads to DEFLATION as government seizes everything to stay in power. They fail to grasp that they are killing the goose that lays the egg. They are too greedy to understand that.
The trick is if we can gather enough people to comprehend the risks, then we can stop short of a Mas Max event. But keep in mind that we are dealing with also the upturn in the War Cycle. This is lined up because we often see war emerge from economic distress.
The US was massive deflation imposed by England where any payment to them had to be in silver or gold whereas what they sent here was only copper. Extracting silver and gold led to the creation of paper money and the slogan no taxation without representation. It was the SHORTAGE of money (DEFLATION) that sparked the revolution.
The French Revolution was the same. Massive DEFLATION because the government bailed out the Mississippi Bubble to save face at the expense of citizens – not much different from bailing out the NY Bankers.
In both those cases, a new currency emerges. This is the NORMAL course of action.
