Topic: Financial Crash: Don't Buy Gold?
I'm still thinking about this one... but here's what I got so far. We may end up having hyperinflation up to a point and then after that it will be deflation.
This guy thinks that we will experience hyperinflation up until a stock market crash. After the stock market crash there will be extreme deflation, (meaning your dollar will sky rocket in value.) So basically, we will see more and more credit being issued which will increase the money supply up until a crash, which will cause all of the lending to disappear. All of the credit will disappear, which will decrease the money supply drastically.
Diversifying into gold, silver, wads of cash, cartons of cigarettes, bottles of hard liquor, and survival food may be the best thing to do. I was actually thinking the other day about how people will probably still accept cash if a crash happens. It is so psychologically ingrained in them. Instead of using debit and credit cards though, it'll be just cash.
Money supply = actual money in circulation + debt
The debt fluctuates when people default on their loans or new loans are issued. If we enter a period where lots of people default on their loans and don't make their credit card payments, then the money supply will shrink. Keeping money in the banks is probably a really bad idea anyways. The banks' reserves are all debt anyways.
He recommends reading a book called Conquer the Crash.
Here's a video on him explaining deflation.
http://montalk.net/metaphys/42/principl … ion-part-i