I am no economist -- why does eliminating the minimum reserve lead to hyperinflation?
I'm trying to think this out. This is supposed to stimulate loans, which in turn is supposed to stimulate industry, through a sort of last-ditch effort, right? If that last-ditch effort doesn't work -- and it won't -- everything collapses. Where does hyperinflation come in to the equation?
This article rings true to me. I don't have the economic terminology to put into words what I am thinking so I had to find an article that agreed with my inchoate and inarticulate thoughts.http://seekingalpha.com/article/133475-why-hyperinflation-is-not-coming
All three of the reasons he cites for why hyperinflation will not happen strike me as dead-on. This is what I was thinking in a confused way.
1) When home prices are falling, hyperinflation never happens.
2) Wealth is being destroyed faster than the Fed can print out notes, balancing out the possible inflation.
3) The "wealth" being created is stagnant, it doesn't go back into the economy, because the banks aren't lending and businesses aren't borrowing.
I'm no economist, but I have an uncanny knack of predicting the future, and I don't see a repeat of pre-WWII Germany. I see a very, very drawn-out decline, and then an overnight total collapse. America is sort of like someone dying slowly of a brain tumor that seems to go on forever, who then develops fatal pneumonia that carries them off instantly. This will be, in my opinion, somewhere around 2017-19. Does that cheer you up?
I think the hyperinflation scenario appeals to the survivalists because it means you'll keep your houses but not be able to buy food, so you have prepared for this with your gardens and granaries or what have you. Then you think you are really smart and that you have prepared beforehand. I hate to break it to you, but you're not going to "survive" any more than the rest of us. Even if you were right about hyperinflation, your house would be swarmed by starving hordes who would kill you. This survivalist business is nothing but a macho fantasy.
If you want to survive, listen to me. Move to France. Then let me live with you until I get a job -- I'll pay you back by translating for you and being a go-between, since I speak the language. I cannot move myself because I'm living off my mom who refuses to listen to me. I am actually desperate to get to France but don't know how. Maybe it's a residue of Great Monarch lore, but even if there's no great Monarch, I know I need to get out of America. Since France has the largest traditional Catholic population -- though SSPX -- that is where something is likely to happen.
It's extremely frustrating -- I'm like an impotent Noah. My mom has been given all sorts of signs and she still refuses to listen. For instance, the other day we were driving to an appointment and a car passed by with an miniature Ark built on top of the roof!