Comments on: $100 Bills As Toilet Tissue? http://www.ritholtz.com/blog/2009/02/100-bills-as-toilet-tissue/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 19:17:10 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: drmike http://www.ritholtz.com/blog/2009/02/100-bills-as-toilet-tissue/comment-page-1/#comment-146032 drmike Sun, 15 Feb 2009 22:44:38 +0000 http://www.ritholtz.com/blog/?p=19028#comment-146032 Oops; first video should have been http://www.youtube.com/watch?v=aeb247Vc1eY&annotation_id=annotation_626679&feature=iv Good news for me though, because of my mistake I have been offered a job in the U.S. Treasury!! drmike Oops;

first video should have been

http://www.youtube.com/watch?v=aeb247Vc1eY&annotation_id=annotation_626679&feature=iv

Good news for me though, because of my mistake I have been offered a job in the U.S. Treasury!!

drmike

]]> By: drmike http://www.ritholtz.com/blog/2009/02/100-bills-as-toilet-tissue/comment-page-1/#comment-146031 drmike Sun, 15 Feb 2009 22:41:56 +0000 http://www.ritholtz.com/blog/?p=19028#comment-146031 We get some of the spending from borrowing. how much you ask? i am sorry to tell you: http://www.youtube.com/watch?v=JCyR7C0r3Dk We get some of the spending from printing money. how much you ask? i am sorry to tell you: http://www.youtube.com/watch?v=JCyR7C0r3Dk These two videos show us where the US dollar is going via massive devaluation. I pray I am wrong. I believe I am not. Dr Mike We get some of the spending from borrowing. how much you ask? i am sorry to tell you:

http://www.youtube.com/watch?v=JCyR7C0r3Dk

We get some of the spending from printing money. how much you ask? i am sorry to tell you:

http://www.youtube.com/watch?v=JCyR7C0r3Dk

These two videos show us where the US dollar is going via massive devaluation. I pray I am wrong. I believe I am not.

Dr Mike

]]> By: akrowne http://www.ritholtz.com/blog/2009/02/100-bills-as-toilet-tissue/comment-page-1/#comment-145870 akrowne Sat, 14 Feb 2009 06:23:07 +0000 http://www.ritholtz.com/blog/?p=19028#comment-145870 That's not really how it works, Chuck (I recently had the same assumptions and have changed my mind). It's less a matter than the initial rate of change in the quantity of money than the change in <i>confidence</i> in that money. Once confidence plummets, some market or even political action serves as a "trigger," then exchange rates fall, flight to real goods starts, and government may be forced to start (literally) printing to continue to operate. I reckon the US could have severe inflation and dollar devaluation without printing a single additional dollar at this point. It would become "hyper" if the political willpower does not exist to exercise restraint. As the actions of the past year and a half show, there is not a whole heck of a lot of that stuff resident in the political class. For a chilling walk through the dynamic discussed above, check out this free <a href="http://ml-implode.com/viewnews/2008-12-25_MerryXmasfromIEHIFreeHyperinflationBook.html" rel="nofollow">hyperinflation book</a> we scanned and put online. That’s not really how it works, Chuck (I recently had the same assumptions and have changed my mind). It’s less a matter than the initial rate of change in the quantity of money than the change in confidence in that money. Once confidence plummets, some market or even political action serves as a “trigger,” then exchange rates fall, flight to real goods starts, and government may be forced to start (literally) printing to continue to operate.

I reckon the US could have severe inflation and dollar devaluation without printing a single additional dollar at this point. It would become “hyper” if the political willpower does not exist to exercise restraint. As the actions of the past year and a half show, there is not a whole heck of a lot of that stuff resident in the political class.

For a chilling walk through the dynamic discussed above, check out this free hyperinflation book we scanned and put online.

]]> By: Chuck Ponzi http://www.ritholtz.com/blog/2009/02/100-bills-as-toilet-tissue/comment-page-1/#comment-145753 Chuck Ponzi Fri, 13 Feb 2009 18:42:56 +0000 http://www.ritholtz.com/blog/?p=19028#comment-145753 I have a hard time (from an economic perspective) seeing how in the current environment with poor employment and deflated assets how we can translate that into sufficient spending to drive hyperinflation. In the scenario noted above, it would be akin to us devolving back into a 3rd world country where there is a massive divide between rich and poor. I'd love to look back on this in 3 years and see if there was even an inkling of that happening. Pray tell, just where are people going to get this money to fuel inflation? We are all bankrupt. Chuck Ponzi I have a hard time (from an economic perspective) seeing how in the current environment with poor employment and deflated assets how we can translate that into sufficient spending to drive hyperinflation.

In the scenario noted above, it would be akin to us devolving back into a 3rd world country where there is a massive divide between rich and poor.

I’d love to look back on this in 3 years and see if there was even an inkling of that happening.

Pray tell, just where are people going to get this money to fuel inflation? We are all bankrupt.

Chuck Ponzi

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