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MacleodFinance's avatar

I would put hyperinfaltion differently: I would not rule out a rapid collapse in the value of all credit, which includes, of course, fiat currencies.

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Simon Gedye's avatar

Simon Gedye - 8th April .

For what it's worth - I rather think that the - " rapid collapse in all credit / Fiat currencies ..etc " , is indeed now the most likely scenario - and is probably lurking just around the corner .

As every day goes by , I'm ever more convinced that we'll hit the buffers before the year's end ,

and that this could literally happen any day now . I think Jim Rickards' ' Falling Snowflake's ' have reached a critical level and the Snow-Pack will very soon be on its way down the mountain-side - engulfing all before it ..etc . " We live in interesting Times " & all that ..

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J. P. Kerber's avatar

That's a perfect way to describe interests in real property - not ownership of the asset, but a bundle of legal rights.

I'm still haunted by Weimar. We can face the consequences of interest rates going up, or we can just skip that step and go straight to printing money. In your analysis, Alasdair, do you think the direct route to hyperinflation is a possibility?

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J. P. Kerber's avatar

That is a very interesting. One would speak of hyperinflation from the perspective of asset prices, while your wording is from the broader perspective of the credit system as a whole, and so is the better framework to use. Thank you!

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