Does not compute - hyperinflation and S&P to 600

[cbc58]

I have seen numerous calls for a major stock market decline with the S&P getting to 600 or even 400 sometime within the next year. Without QE's I can certainly see this happening, but can't wrap my head around it going down with all the QE's and unlimited funding the Fed has said they would inject.

How can it go down when they keep pumping money into the system? When hyperinflation hits (if it does), then you could assume that the stock market would skyrocket. So does it go down first and then skyrocket or does it just adjust slightly and then go up from here?

[Seraphim]

A true hyperinflation will see stocks go to hyperinflated numbers (and as such real valuations IMPOSSIBLE to gauge since the numbers will be going up so quickly that purchases of stocks will be based on currency destruction and speculation).

Generally speaking, hyperinflation is preceeded by a serious deflation. The hyperinflation is the result of policy to stave of said deflation. Confidence in the fiat erodes and people begin to speculate (rightfully so) that their paper will be much less valuable and begin to offload it for ANYTHING. Velocity of money skyrockets as paper becomes the hot potato du-jour.

Just as occured in Germany, hyperinflation will occur once the Fed and USG destroy INTERNATIONAL faith in the USD and foreign markets will reject the USD and send USD denominated valuations much, much higher.

Once Americans pick up on the enourmous revaluation of everything they own - the massive inflation will kick into high gear (HYPERinflation).

I do NOT think the Japanese style policy will result in a Japanese result.

One is a country with massive homeland savings denominated in the yen backed bonds the govt issues, the other is the world reserve currency (that is being shunned internationally) with a domestic populace with little to no savings.

At the highest levels of the USG, they know the two ways to keep the USD afloat are war and gold.

It seems the former has been chosen. This is EXTREMELY unsustainable (and self defeating).

You can thank your NAZI style politics.

JUST LIKE GERMANY, THE UNITED STATES MUST BE DESTROYED IN ORDER TO USHER IN THE NWO.

British banking and it's Zionist power bloc CANNOT have self sustaining manufacturing giants outside of it's control. They will move heaven and hell to destroy the US as it did Germany.

History rhymes.

The USA is Germany circa 1920-1940.

[dinosaur]

So what is the speculative timetable? Is it reasonable to assume this might take another ten years? If hyperinflation hits, it is going to be more diffcult for people to pass land and houses on to their children, because more people will fall into the 55% tax bracket and be forced to sell just to pay the taxes. It would seem that the only way around this is to start gifting stocks and houses to our children now, even if they are underage.

[Seraphim]

In said scenario you should not be moving real assets except when you MUST.

Preservation. Preservation. Preservation.

So what is the speculative timetable? Is it reasonable to assume this might take another ten years? If hyperinflation hits, it is going to be more diffcult for people to pass land and houses on to their children, because more people will fall into the 55% tax bracket and be forced to sell just to pay the taxes. It would seem that the only way around this is to start gifting stocks and houses to our children now, even if they are underage.

[Bern]

I have seen numerous calls for a major stock market decline with the S&P getting to 600 or even 400 sometime within the next year. Without QE's I can certainly see this happening, but can't wrap my head around it going down with all the QE's and unlimited funding the Fed has said they would inject.
...

Late this afternoon, a story appeared on the Dow Jones newswire service relating a speech given by Federal Reserve governor Jeremy Stein. In his prepared remarks he defends QE3 and seems to be strongly arguing for an additional new round of QE4.
...
There is however a nice, dirty little secret that Mr. Stein, more than likely inadvertently, let out of the bag. Here is the takeaway quotation....

Research shows "Treasury buying is associated with increases in stock prices, which in turn can have wealth effects on consumption and investment".

There ya have conclusive proof that a major strategy of the Central Bank is to produce enough funny money to jam the stock market higher and by so doing, make consumers feel wealthier as they examine their 401K's and retirement portfolios as well as inducing businesses to expand based on a rising price for their stock.
...

http://traderdannorcini.blogspot.com...l-singing.html

S&P/stock market won't crash if the Fed has anything to say about it.

[gwax23]

A true hyperinflation will see stocks go to hyperinflated numbers (and as such real valuations IMPOSSIBLE to gauge since the numbers will be going up so quickly that purchases of stocks will be based on currency destruction and speculation).

Generally speaking, hyperinflation is preceeded by a serious deflation. The hyperinflation is the result of policy to stave of said deflation. Confidence in the fiat erodes and people begin to speculate (rightfully so) that their paper will be much less valuable and begin to offload it for ANYTHING. Velocity of money skyrockets as paper becomes the hot potato du-jour.

Just as occured in Germany, hyperinflation will occur once the Fed and USG destroy INTERNATIONAL faith in the USD and foreign markets will reject the USD and send USD denominated valuations much, much higher.

Once Americans pick up on the enourmous revaluation of everything they own - the massive inflation will kick into high gear (HYPERinflation).

I do NOT think the Japanese style policy will result in a Japanese result.

One is a country with massive homeland savings denominated in the yen backed bonds the govt issues, the other is the world reserve currency (that is being shunned internationally) with a domestic populace with little to no savings.

At the highest levels of the USG, they know the two ways to keep the USD afloat are war and gold.

It seems the former has been chosen. This is EXTREMELY unsustainable (and self defeating).

You can thank your NAZI style politics.

JUST LIKE GERMANY, THE UNITED STATES MUST BE DESTROYED IN ORDER TO USHER IN THE NWO.

British banking and it's Zionist power bloc CANNOT have self sustaining manufacturing giants outside of it's control. They will move heaven and hell to destroy the US as it did Germany.

History rhymes.

The USA is Germany circa 1920-1940.

Of course its the zionists. I always knew they are somehow involved. Silly jews with their banks and controlling our country. All makes sense now.

[cbc58]

S&P/stock market won't crash if the Fed has anything to say about it.

That's exactly why I can't see the market dropping like many say it will. It should, but they will just buy it and prop it up... until they either can't or won't be let to. I think there will certainly be some kind of drop very soon to get the attention of everyone.. but there is so much at stake they (to save their skin) can't let it fall. Absolutely every aspect of life will be effected and the average person has no idea it is as bad as it is.

Or perhaps the euro will finally blow up, the dollar will strengthen and we get more years of can kicking...

The conspiracy theorist in me says at some point it will all go kaboom and the elite will pick up everything for pennies or a pack of twinkies.

[Seraphim]

Your passive aggressive nonsense is very unmanly (and pathetic).

No where did I say JEWS.

A Jew is not a Zionist. The most devote Jews in the world are in diametric opposition to Zionism.

Most Zionists are actually Christian (misguided and philosophically STUNTED Christians).

Try again.

Of course its the zionists. I always knew they are somehow involved. Silly jews with their banks and controlling our country. All makes sense now.

[gwax23]

You're passive aggressive nonsense is very unmanly (and pathetic).

No where did I say JEWS.

A Jew is not a Zionist. The most devote Jews in the world are in diametric opposition to Zionism.

Most Zionists are actually Christian (misguided and philosophically STUNTED Christians).

Try again.

Oh Please the rhetoric is exactly he same as antisemitic rants from the 30's. All your doing is simply swapping the word "jews" for "zionists" or "Judaism" with "Zionism."

You guys love to point out the supposed difference but you dont fool anyone.

Jews are part of some secret cabal and are controlling the banks to take over the worldz!!!

Oops sorry I mean. Those evil zionists are part of a secret cabal and are controlling the banks to take over the worldz!!! Now thats more like it. Definately no similarities there.

Even if I took what your saying at face value. That zionists are somehow behind the worlds economic woes it doesnt make what your saying any less ridiculous. Sure you can say your not antisemitic but you are without a doubt a complete and utter idiot if you believe that.

[ClydeCoulter]

Oh Please the rhetoric is exactly he same as antisemitic rants from the 30's. All your doing is simply swapping the word "jews" for "zionists" or "Judaism" with "Zionism."

You guys love to point out the supposed difference and try to make yourself appear smarter in the process but you dont fool anyone. Jews are part of some secret cabal and are controlling the banks to take over the worldz!!!

Oops sorry I mean. Those evil zionists are part of a cabal and are controlling the banks to take over the worldz!!! Now thats more like it. Definately no similarities there.

Even if I took what your saying at face value. That zionists are somehow behind the worlds economic woes it doesnt make what your saying any less ridiculous. Sure you can say your not antisemitic but you are without a doubt a complete and utter idiot if you believe that.

Trolls troll. This doesn't address Seraphim at all.