Hyperinflation Is A Form Of Deflation Combined With Currency Collapse

Zippyjuan said:
The money the Fed has put out so far has not been circulating. .
Click to expand...





Well, at least some of it here.

Besides the money being used to expand the size of government and grow the debt, paying off foreign banks.... etc.

It sure feels like robbery.... if it isn't

This from November 08

Chinese carmakers SAIC and Dongfeng have plans to acquire GM and Chrysler, China’s 21st Century Business Herald reports today. [A National Enquirer the paper is not. It is one of China's leading business newspapers, with a daily readership over three million.]

The paper cites a senior official of China’s Ministry of Industry and Information Technology–

the state regulator of China’s auto industry– who dropped the hint that

“the auto manufacturing giants in China, such as Shanghai Automotive Industry Corporation (SAIC) and Dongfeng Motor Corporation, have the capability and intention to buy some assets of the two crisis-plagued American automakers.”


http://www.thetruthaboutcars.com/breaking-news-chinese-may-buy-gm-and-chrysler/
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The cash printed by the FED is being used, why would it be printed if not to use.


Print it off and put it in vaults?
Why?

Its being used and we all will feel it soon enough
 
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The US automakers have plants in China too- believe it or not.
Not sure what any of that has to do with US inflation though.
http://www.gm.com/corporate/about/
General Motors Corp. (NYSE: GM), one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 244,500 people in every major region of the world, and sells and services vehicles in some 140 countries.

In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services.
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Zippyjuan said:
The US automakers have plants in China too- believe it or not.
Not sure what any of that has to do with US inflation though.
http://www.gm.com/corporate/about/
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they have the money, the cash, the bread, the paper to buy up the hard assets.


You are aware the Chinese hold over a trillion FRN's, right.

The trade imbalance has given them the upper hand with holding the cash.
That cash is good for buying up automakers or coffee makers
 
Actually they have about $800 billion in Treasury notes and about $400 billion in other US securities.

What is for sale?
 
Zippyjuan said:
Actually they have about $800 billion in Treasury notes and about $400 billion in other US securities.

What is for sale?
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I just read somewhere it is a trillion

But if they are in Bonds and want cash to buy up hard assets here, whats to stop them?
 
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China keeps their currency at an artificially low exchange rate vs other currencies like the dollar to keep the costs of their labor and exports lower. If they were to sell their dollar holdings, the value of their currency would rise and the cost of their exports would rise too which would harm their exports- a significant portion of their economic growth. That is why they have been putting their dollar earnings into dollar priced securities like Treasuries instead of converting them to their own or other currencies. Right now they are selling less to us because of the economic downturn so I could see them decide to buy fewer Treasuries but it is not likely they would dump what they have.
 
Well, they will have to spend something to do this

Chinese Automakers May Buy GM and Chrysler

By Bertel Schmitt
November 18, 2008

Chinese carmakers SAIC and Dongfeng have plans to acquire GM and Chrysler, China’s 21st Century Business Herald reports today
Click to expand...

Chinese carmakers are not a privately owned independent business in China.

There is no such thing in China.

The paper cites a senior official of China’s Ministry of Industry and Information Technology– the state regulator of China’s auto industry– who dropped the hint that “the auto manufacturing giants in China, such as Shanghai Automotive Industry Corporation (SAIC) and Dongfeng Motor Corporation, have the capability and intention to buy some assets of the two crisis-plagued American automakers.”
Click to expand...


The paper cites a senior official of China’s Ministry of Industry and Information Technology
Click to expand...
 
Go hold onto some silver coins and feel their weight. Do the same with gold and be blown away.

Thousands of years of history tell me people value it, have a romance with it.

How good will a piece of paper feel?
 
When inflation hits, there is a penalty for holding currency.This is when gold and silver become more important for preserving capital or profiting from the trend.

I choose not to trust current trends. Do you?
 
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