Loading ...Food for thought, briefly, re your…
“Lots more dollars competing for a fixed supply of goods = hyperinflation.”
Comment: They say after every inflation comes a deflation. The “inflation” started in 1913 and ended at the 1929 peak into 10 years of deflation. The next “inflation” started in 1934 after banning Gold ownership.
The 1934 “inflation” STARTED to end in 1971, forcing the Fed to stop redeeming dollars for Gold at $35 when black market price was $240. The Fed Head buffoon Paul Adolf Volker raised rates from 6 to 21% (’71-81) to create demand for dollars to deposit in 18% CDs. (bury, deep storage)
From ’71 to ’81, the 21% rates SUCKED many dollars out of the system. From 1981 to 2001 (120 dollar index) most commodities were in deflation. 2001 to 2011 re-inflation of commodities.
Why are rates REALLY so low these days??? Too much easy money creation for 100 years has resulted in billions or trillions of dollars of excess un-needed un-spent money in savings accounts, and not enough demand to borrow any.
Too many dollars chasing a borrower, kills rates. Too many dollars competing for a fixed supply of goods is no longer applicable. Mass production by robots at night with no lights on for example.
Add when the masses are just getting by and don’t spend so much. Money needs a host. It can’t spend itself by itself. Like a gun can’t shoot anyone either. It needs a host.
I think for the dollar to crash would require something psychological that creates a massive dumping of dollars like a stock with a bad earnings report.