Posted Apr 19, 2013 by Martin Armstrong
I understand that some people have a hard time grasping how is it possible to deflate when on the one hand they appear to create money wholesale? We are in a period of STAGFLATION. This means that the REAL cost of living (including government taxation) is rising. This is squeezing out net disposable income. So we get the worst of both worlds. Additionally, the dollar is the reserve currency and the DEMAND for the dollar is rising as Europe and Japan have problems.
To get HYPERINFLATION that has never taken place in a core economy even looking at Rome, Spain, France, England and now America, the assumption is government will “print” to meet obligations.
The other side of that same coin is they choose AUSTERITY insofar as they seize assets to meet expenses and cut the promises they did make. This is what they are talking about behind closed door on both sides of the Atlantic. Europe wants to seize assets in the South and just take 15% of all wages as a pretended “savings” while in the USA Obama wants to go after IRA’s and change the laws to grab over $3 million now, while they are eyeing up $20 trillion in pension funds to offset $17 trillion in debt.
They are buying tanks and bullets. That is not following the path of HYPERINFLATION. There is no rule of law. They can do as they like and the courts will sanction whatever they do. What if they do not print, they just do not honor anything?
This is far worse, for this is how ALL empires have died.