DeeLoaf

I had thought that surely there would be a deflation before the big inflation. That is, that money would increase in value first, the idea being that the Banks need to take posession of all the homes they have out on loan at the moment. And of course they do, but they wont achieve it by money supply tightening to increasing the value of the currency. I had reasoned that a deflation was coming to take away jobs and that is what would get the homes back to the banks. But no, that is ass backwards, I mean, yes that would work for them, but it could take a while for the tightening to start showing up as lost jobs. And the people who still had jobs, still getting paid the same amount, would find themselves with dollars worth more, and .. hello, same wage, just keep making the mortgage payment. And hello, same wage, as the price of goods is falling. Ok, so who's losing their homes? not many people. Not right away.

So, back to the hyperinflation scenario. What happens if the value of the dollar goes down very quickly? Stagflation. Yes thats it, super stagflation. People getting the same wages, but allt he prices of goods are going up, and rapidly!. Same wages. So then you are devoting an ever larger slice of your income to living, whilst the old mortgage payment stays the same. Not long and you are deciding whether to eat or pay the mortage bill. Easy decision right, and back to the bank with the house. And I bet in this scenario, people will try to hang on for as long as possible, further enriching the banks.

Ok, yes, this sounds a much more practical way to get people out of their homes. Hyperinflation only lets people easily pay back loans when WAGES INCREASE IN STEP. Fuck. Thats the rub. thats the fucking rub, wages are going nowhere. Wages are giong DOWN for some people. Hyper-stagflation. We'll have to see how things go. But this could be the great Malthusian conclusion to the little game central banking directed capitalism. Peak Oil, Peak Money, Peak Food, Peak People, Peak everything.