Deflation Begets Hyperinflation

The taxpaying majority (TTM) are about to experience the endgame of a deflationary fiat currency. In the future a shopping cart of fiat dollars used to purchase a grocery bag of food is not only deflationary but exemplifies hyperinflation. TTM may ask how a thousand fold increases in the amount of dollars needed to make such a purchase be deflationary and hyper inflationary.

Because TTM’s currency is tied to lobbying and purchasing a capitulated, captured and controlled government it is easy to become conned by this deflationary sleight of hand. TTM must remember that the purchasing power of their currency is being exterminated with extreme prejudice every time government deficit spends, prints dollars and abuses its credit line beyond what is needed to continue governance.

Deficit printing and borrowing dollars only acerbates and delays a day of reckoning when hyperinflation will come roaring to life. As the purchasing power of the dollar deflates prices will have to decrease to fight of hyperinflation. One way of keeping prices down is by lying off more employees. At the same time the equities stock market experiences inflation by computerized front running deep pool HFT as synthetic profits yield obscene commissions and bonuses in a 21% unemployment environment.

TTM is no longer able to borrow a half a million dollars to purchase a price depreciating, deflating housing asset through undisciplined, unregulated and abusive debt financing because of a collapsing credit market. Therefore the price of housing will continue to fall until an acceptable universal accounting, rating and leveraging system is reestablished.

Meanwhile inside the Euro zone Greek interest rates inflate as global investors prepare to pour monies into a illusionary secure deflating interest rate in US Treasuries. The bottom of a deflating credit market must include an unwinding of a $1.5 quadrillion derivatives market. The credit market collapse continues to fuel the current deflationary recession.

As banks hoard monies acquired through a false flag financial operation they prohibit the expansion of credit which is one essential ingredient required to inflate the economy out of the current recession.