Originally Posted by classictv80s
Wrong, inflation is when you have too many dollars chasing after too few assets and goods. Since most of America's money supply is debt, the debt is largely being defaulted on, which explains why the vast majority of Americans have very little or no money. What we are seeing now, as a result, is too few dollars chasing after too many assets and goods, and that means deflation - not inflation.
You mention Germany post-World War I and their hyper-inflation, but that was caused primarily by Germany having to pay huge reparations as a result of the Versailles Treaty, this made them completely insolvent, in addition to their economic base and infrastructure largely being devastated as a result of the war. The Weimar Republic was in even worse shape than the United States is today. The best comparison you could make with America's economic situation currently is Japan in the 1990s, though the two situations are not entirely similar.
Getting back to the original topic, the current economic situation will eventually, years from now, cause most of the major electronics companies worldwide to go under, including of course General Electric. And it doesn't help the situation any that the quality of consumer electronics products today is absolute junk.
Many people, largely on the Internet conspiracy theory web sites and forums, like to claim that the US government will simply print even more money, and that will guarantee us a future of hyper-inflation. Not true, first of all if they tried that, there would be a massive US bond market sell-off worldwide because the treasuries would be basically worthless, due to the dollar totally collapsing. Of course, the US bond market has already been in a huge bubble for many years now, and it's only a matter of time before the foreign investors, as well as many Americans, quit financing the massive debt of the United States government. The bubbles in real estate and commodities such as oil will continue to burst, and eventually return to reasonable, sustainable, and affordable price levels. The future is deflation, and despite all of their panicked efforts, there is nothing that the United States government, the politicians, or anyone else will be able to do about it. The future is deflation and a 30-to-40-year economic depression, as a result of decades of too much spending, too much borrowing, and too much debt, in both the public and private sector.
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